The capital raise, confirmed on Friday by company executive Devakumar Edwin, comes ahead of the refinery’s planned initial public offering (IPO) expected later this year.
The funds are expected to support the refinery’s expansion plans as it increases production capacity, improves operational efficiency and deepens its presence in both Nigeria’s domestic fuel market and international export markets.
Located in Lagos, the 650,000 barrels-per-day Dangote Petroleum Refinery began production in 2024 and has steadily increased output of key petroleum products, including diesel, aviation fuel, naphtha and petrol.
The refinery’s operations have significantly reduced Nigeria’s dependence on imported petroleum products, marking a major shift in the country’s long-standing reliance on foreign fuel supplies despite being one of Africa’s largest crude oil producers.
Sources familiar with the transaction had earlier disclosed that the refinery offered 3 billion ordinary shares at $0.35 each, with investor demand exceeding $2 billion during the fundraising process.
Participation in the private placement required investors to subscribe for a minimum of 1 million shares valued at $350,000, while additional purchases were structured in blocks of 500,000 shares.
The shares are expected to be subject to a 365-day lock-up period, restricting investors from selling their holdings within the first year after acquisition, according to sources familiar with the deal.
The successful capital raise comes as Dangote Refinery continues efforts to position itself as a major player in the global petroleum market while helping Nigeria achieve greater energy security.
With its expanded production capacity, the refinery is expected to play a crucial role in supplying petroleum products locally, reducing foreign exchange pressure from fuel imports and increasing Nigeria’s participation in regional fuel exports.