Business Briefings
Otedola Sells Geregu Stake to Buy into Dangote Refinery IPO
Billionaire businessman Femi Otedola has revealed that he sold his stake in Geregu Power Plc to position himself for investment in the proposed initial public offering of Dangote Petroleum Refinery, describing the project as a transformative industrial venture capable of reducing Africa’s dependence on imported petroleum products.
Otedola disclosed this during a visit by the board and management of FirstHoldCo Plc to the 650,000-barrel-per-day refinery and Dangote Fertiliser complex in Ibeju-Lekki, Lagos.
During the tour, the chairman of FirstHoldCo openly appealed to Aliko Dangote, president of the Dangote Group, to allocate $100 million worth of shares to him during the refinery’s proposed listing.
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“He is a genius and one of the greatest men to emerge from Africa. What he has achieved is helping to liberate the continent from economic dependency and import reliance,” Otedola said.
“I have visited this refinery more than 25 times, and I have consistently appealed for $100 million worth of shares during the private placement. That informed my decision to sell my stake in Geregu so I can reinvest in the Dangote Petroleum Refinery,” he added.
Otedola also expressed confidence in the refinery’s planned expansion to 1.4 million barrels per day, noting that growing demand for refined petroleum products across Africa justifies continued investment in domestic refining capacity.
In his remarks, Dangote assured that the refinery’s IPO would be structured to allow ordinary Nigerians and Africans to participate in the value being created through the project.
“We want ordinary Africans to participate in the value being created. What companies like Amazon and Apple achieved globally in terms of wealth creation is what we seek to replicate in Africa. We want people to invest, grow with us, and share in the prosperity,” Dangote stated.
Dangote further disclosed plans for a proposed refinery in East Africa with a projected refining capacity of 700,000 barrels per day, alongside polypropylene and base oil production facilities.
According to him, the project could commence within the next three to four years once construction begins.
He noted that the expansion initiative was not originally included in the group’s Vision 2030 strategy, underscoring the rapid pace of growth within the conglomerate’s industrial operations.
Dangote also highlighted the group’s continued dominance across its core sectors, including cement production in 11 African countries, as well as major investments in refining, petrochemicals, and fertiliser production.
He stated that cement production capacity had risen to 55 million tonnes annually, supported by clinker export terminals aimed at boosting regional trade integration.
“We have built businesses that address Africa’s critical needs and create long-term value for the continent. Africa must stop exporting raw materials and importing finished goods. That amounts to exporting jobs and importing poverty,” he said.
Chief Executive Officer of FirstBank Group, Olusegun Alebiosu, described the refinery as a symbol of vision, courage, and industrial ambition capable of inspiring transformative investments across the continent.
“If you see this refinery and realise that an individual conceived and delivered a project of this magnitude, already helping to stabilise energy supply across Africa, you cannot help but be inspired,” Alebiosu said.
“We have delegates here from the United Kingdom and several African countries who will return home with renewed commitment to building industries that can transform their economies. It is about building Africa together,” he added.
Dangote also revealed that investor appetite for the refinery’s proposed listing on the Nigerian Exchange had remained exceptionally strong, with demand for the private placement already exceeding $2 billion.
“There is significant interest in both the IPO and the private placement. While we are not able to meet all requests, the strong demand reflects investors’ confidence in the refinery and in Africa’s industrial future,” he noted.
