Nigerian billionaire businessman, and chairman of First HoldCo Plc, Femi Otedola has disclosed plans to invest $100 million in the Dangote Refinery ahead of the facility’s planned Initial Public Offering (IPO).
Otedola made the disclosure after leading top executives of First HoldCo on a tour of the Lekki-based refinery complex owned by Africa’s richest man, Aliko Dangote.
According to reports, the investment forms part of the refinery’s planned $2 billion private placement designed to attract strategic investors before the public listing.
The businessman reportedly said he had appealed to Dangote to allocate shares worth $100 million to him in the private placement, noting that proceeds from the sale of his stake in Geregu Power would be channelled into the refinery investment.
Industry analysts say the move reflects growing investor confidence in the refinery, which is regarded as Africa’s largest single-train petroleum refinery with a projected refining capacity of 650,000 barrels per day.
The Dangote Refinery, located in Ibeju-Lekki, Lagos, is expected to play a major role in reducing Nigeria’s dependence on imported petroleum products while boosting exports across Africa and other international markets.
