Amolegbe, who is the Managing Director and Chief Executive Officer of Arthur Stevens Asset Management Limited, said using registered stockbrokers would also make it easier for investors to open their Central Securities Clearing System accounts, acquire shares and resolve issues that might arise after the allocation of shares.
His advice comes as the Nigerian capital market gears up for one of the country’s biggest public offerings, with the Dangote refinery seeking to raise N2.15tn, or approximately $1.6bn, to fund further expansion of the facility.
The offer consists of 4.1 billion ordinary shares priced at N525 each. With the minimum subscription fixed at 10 shares, prospective investors can participate with as little as N5,250.
The promoters are targeting about 10 million retail investors, making broad public participation a major feature of the offer.
Why Investors Need Stockbrokers
Speaking on the importance of using licensed stockbrokers, Amolegbe stressed that their responsibilities went beyond simply buying shares on behalf of investors.
He explained that brokers could assist investors with the technical and administrative aspects of participating in the capital market, including opening CSCS accounts and resolving difficulties associated with share ownership.
“They can open a CSCS account for you directly. If you encounter challenges with your shares, they are the ones that can sort it out for you. If you need to sell your shares or buy more, they are the ones that can do it for you. They are the ones that have been specifically trained to advise on shares and stocks”, he said.
According to him, the increasing use of technology by stockbroking firms has also removed many of the barriers that previously made the capital market appear inaccessible to ordinary Nigerians.
“Most of them have electronic platforms that enable you to buy shares and trade shares without leaving the comfort of your home or office,” he said.
Amolegbe added that investors could also benefit from professional guidance in managing their holdings, particularly as market conditions change.
Stockbrokers, he said, can “help you administer and manage your stock portfolio in order to increase your returns while reducing your risks.”
Major Boost Expected for Nigerian Stock Market
The planned Dangote refinery listing is expected to have a significant impact on the size and depth of the Nigerian equities market.
Chairman of the Dangote IPO investor roadshow, Oluwagbenga Oyebode, had projected that the transaction could push the total market capitalisation of the Nigerian Exchange from about N160tn to approximately N225tn.
Beyond increasing market capitalisation, Oyebode said the listing would deepen liquidity and expand the energy and downstream segment of the Nigerian equities market.
The transaction is also expected to channel substantial fresh capital into the refinery as it enters another phase of expansion.
Oyebode said the expected net proceeds of about N2.1tn would be used entirely as growth capital for the refinery’s expansion, rather than being deployed to repair or restructure its balance sheet.
He described the transaction, which has received approval from the Securities and Exchange Commission, as the first major public offering under the Investment and Securities Act 2025.
‘IPO for the People’
The promoters have repeatedly highlighted the retail component of the offering, with the relatively low minimum subscription intended to enable ordinary Nigerians to acquire a stake in the refinery.
At the IPO investor roadshow in Abuja, President of Dangote Group, Aliko Dangote, said the pricing structure was deliberately designed to encourage widespread participation.
“The offer price and minimum subscription level is to allow for wider participation as we want every Nigerian to own a piece of this asset. That is why we have called it The IPO for the People,” Dangote said in a message delivered by the Senior Adviser, Special Projects and Strategic Relations to the Group President, Dangote Industries Limited, Fatima Wali-Abdurrahman.
Dangote also disclosed that the group wanted investors from other parts of Africa to participate in the offer.
He said the company was considering listing the refinery in about six other African countries, potentially widening access to the investment beyond Nigeria.
Economist Sees Wider Economic Benefits
Economist and Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, also backed the potential impact of the IPO on the Nigerian economy and capital market.
Rewane said the offering could deepen the stock market by bringing more investors and capital into the equities space, while also providing funding for the refinery’s expansion.
He added that the investment could support import substitution, particularly as the refinery expands its capacity to supply petroleum products to the domestic and regional markets.
With the N2.15tn offer and an ambitious target of 10 million retail investors, the Dangote refinery IPO is poised to become a major test of Nigerians’ appetite for equity investment.
For Amolegbe, however, the opportunity should be approached with adequate professional guidance, with licensed stockbrokers serving as an important link between first-time investors and the capital market.