NGX Chairman Excited as Dangote Refinery Plans to Sell Shares to Nigerians

• Dangote Petrochemicals, one of the companies under the Dangote Group, is planning to list on the Nigerian Exchange
• The move has been hailed by the chairman of the Nigerian Exchange Group (NGX) as it will boost market capitalisation
• The Dangote refinery is the $20 billion largest single-train refinery in the world, with a capacity of 650,000 barrels per day

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends. (edited)

The Nigerian Exchange Group (NGX) is actively preparing for the listing of Dangote Petrochemicals, with the target set for the second quarter of 2025.

Africa's richest man is said to have applied to list the company publicly, giving Nigerians a chance to become part-owners through investments.

Nigerians to buy Dangote refinery shares

Umaru Kwairanga, NGX Chairman, in a statement on Friday, June 6, said that the anticipated listing aligns with President Bola Tinubu’s economic agenda, which aims to expand Nigeria’s Gross Domestic Product (GDP) to $1 trillion by 2030.

According to Kwairanga, key listings in the oil and gas sector, such as the planned sale of a stake in the Nigerian National Petroleum Company Limited and Dangote Petrochemicals, will play a vital role in achieving this goal.

Speaking further on the expected impact of Dangote Petrochemicals’ listing, Kwairanga expressed NGX’s commitment to facilitating growth and investment in Nigeria’s financial markets.

Kwairanga stated:

“Dangote Refinery has already applied for their petrochemical listing, and we are working to ensure their inclusion before the end of the second quarter.”

He also pointed out the strategic importance of a robust capital market, stressing that increased market participation can drive long-term infrastructure development, improve business formalisation, and reflect Nigeria’s true economic potential.

However, Kwairanga expressed concern that Nigeria’s stock market capitalisation remains below 20% of its GDP, whereas South Africa’s Johannesburg Stock Exchange exceeds its national GDP.

NGX wants more youth participation

To address these disparities, NGX Group, in collaboration with the Securities and Exchange Commission (SEC), has initiated measures to improve market transparency and efficiency.

These include the dematerialisation of share certificates to enable seamless electronic transactions, the resolution of unpaid dividend backlogs to restore investor confidence, and the reduction of clearing time for secondary market transactions to T+2 to improve liquidity.

Kwairanga affirmed:

“We are working closely with regulators and stakeholders to enhance market accessibility and attractiveness."

Kwairanga further stressed the role of digital innovation in increasing market participation, citing the launch of NGX Invest, a digital platform designed to simplify primary market offers and expand financial literacy, particularly among students, youths, and members of the National Youth Service Corps (NYSC), Leadership reports.

NNPC plans to list shares

Earlier, Legit.ng reported that NNPC Ltd. has previously announced plans for an IPO, including in 2018 and 2023, but those efforts did not materialise due to market conditions and internal restructuring challenges.

The company, which became a commercial entity in 2022 under the Petroleum Industry Act (PIA), is required to list its shares in line with the Companies and Allied Matters Act (CAMA) 1990.

Analysts say NNPC Ltd. must strengthen its financial position to attract investors by improving transparency, reducing debt, and maintaining positive cash flow.

Source: Legit.ng