Bank’s financing offer opens another route into Africa’s biggest share sale, but investors borrowing to buy shares will still carry the risk of repayment
United Bank for Africa (UBA) has offered Nigerian customers access to personal loans of up to N30 million to help finance purchases of shares in Aliko Dangote’s $1.6 billion refinery initial public offering (IPO), potentially giving salaried investors another way to participate in one of the biggest capital-market transactions in Africa.
The financing facility was promoted by the bank in an email to customers who may need additional funds to subscribe to the offer. Under the arrangement, eligible customers can access up to N30 million through UBA’s existing personal-loan product rather than through a special loan created specifically for the Dangote Petroleum Refinery IPO.
UBA’s offer comes as demand for the refinery shares continues to generate significant activity among Nigerian retail investors, with several digital investment platforms reporting disruptions as investors attempted to access the offer.
The bank said customers could obtain as much as N30 million through its existing personal-loan product. However, the amount available to an individual borrower is subject to the bank’s normal eligibility requirements.
UBA’s official product information indicates that the personal-loan facility is primarily targeted at salary earners. Applicants generally have to provide evidence of salary payments and recent bank statements, while the applicable interest rate may change in response to money-market conditions.
The maximum amount a customer can obtain also depends on factors including employment category and individual eligibility.
There is no indication that UBA has introduced a special interest rate, extended repayment arrangement or separate risk protection for customers taking the facility specifically to buy Dangote refinery shares.
That distinction is significant for investors considering borrowing to participate in the IPO.
Unlike a fixed-income investment, the market value of shares can rise or fall after they begin trading. An investor who uses borrowed money remains responsible for repaying the principal and interest regardless of how the shares perform.
N2.15 trillion target
Dangote Petroleum Refinery is offering 4.1 billion ordinary shares at N525 each, with the transaction expected to raise about N2.15 trillion, equivalent to approximately $1.6 billion.
The offer represents a major step in bringing the refinery to the Nigerian public market and is designed to broaden ownership among both institutional and retail investors.
The company is being valued at roughly $47 billion to $50 billion, depending on the exchange rate and valuation methodology used.
The offer is expected to close on October 13, while trading of the shares on the Nigerian Exchange is scheduled to begin in November.
For retail investors, the minimum subscription has been set at 10 shares, meaning an investor can participate with N5,250 at the offer price.
At the same price, a N30 million facility could theoretically finance the purchase of approximately 57,140 shares before accounting for interest, bank charges, brokerage fees and other transaction costs.
The relatively low minimum subscription has been presented as part of the effort to bring the refinery's ownership within reach of a broad base of Nigerian investors.
For many retail investors, however, the UBA financing option could alter the equation by allowing customers without sufficient cash savings to participate using borrowed funds.
Platforms face surge in demand
Interest in the offering has already put pressure on parts of Nigeria’s digital investment infrastructure.
Investment platforms including Bamboo, Cowrywise and InvestNaija experienced service disruptions after a surge in traffic when subscriptions opened, as investors sought to access information and place orders for the shares.
The rush underscores the scale of retail interest surrounding the offering, particularly as Nigerian investors look for opportunities to participate directly in the ownership of one of the country's most prominent industrial assets.
The IPO also comes at a time when the refinery has become increasingly important to Nigeria's petroleum supply chain.
Refinery expands its footprint
Dangote Petroleum Refinery began production in 2024 and currently has a processing capacity of about 700,000 barrels per day.
The facility has reduced Nigeria's dependence on imported petroleum products and has emerged as a significant supplier of diesel and aviation fuel to markets in Africa and Europe.
The company plans to double capacity to 1.4 million barrels per day by 2029.
Funds raised through the IPO are expected to support the expansion programme and other infrastructure investments, including storage facilities and the Dangote Group's proposed refinery development in Kenya.
The refinery's financial performance has also drawn attention from investors. It reported net profit of $1.82 billion on revenue of more than $13 billion in the first half of 2026, with the company benefiting from disruptions to fuel exports from the Middle East.
Those financial results have added to the interest surrounding the IPO, although they do not eliminate the risks associated with buying shares.
Analysts raise valuation questions
Despite the enthusiasm surrounding the offer, some analysts have raised questions about the refinery's valuation and the relatively small portion of the company being made available to the public.
Questions have also been raised about the risks investors could face once the initial excitement surrounding the listing fades and the shares begin trading in the secondary market.
For investors paying cash for shares, a decline in the market price would translate into a loss on paper, although the investor would not face a separate loan repayment obligation.
For someone financing the purchase with a personal loan, the calculation is different.
The borrower would have to service the debt irrespective of whether the shares appreciate, remain flat or decline. Interest payments would also reduce the investor's effective return if the shares fail to generate sufficient capital gains or dividends.
UBA's offer therefore creates an additional avenue for retail participation while also highlighting a broader issue for investors considering the IPO: access to financing does not remove investment risk.
For salaried Nigerians who lack enough immediately available cash, the N30 million facility could provide the means to subscribe for a larger number of shares. But the decision to borrow to invest ultimately leaves the customer carrying both the investment risk attached to the refinery shares and the contractual obligation to repay the bank.