Nigeria’s industrial landscape is on the brink of a historic financial milestone as the Dangote Petroleum Refinery & Petrochemicals prepares to launch what could become Africa’s largest initial public offering (IPO), with plans to raise up to $5 billion from investors.

The move, driven by Africa’s richest man, Aliko Dangote, signals a new phase in the evolution of the continent’s capital markets, as the refinery positions itself for broader ownership and increased investor participation.

Sources familiar with the transaction indicate that the public offer could open as early as May, with the company currently valued between $40 billion and $50 billion. The IPO is expected to release between 5 and 10 percent of the company’s equity, creating room for both domestic and international investors to take part in one of Africa’s most significant industrial ventures.

Market analysts say the listing could deepen liquidity across African exchanges and serve as a benchmark for cross-border capital mobilisation.

To structure the offering, the Dangote Group has assembled a consortium of financial advisers. Stanbic IBTC Capital will coordinate international placements and investor relations, while Vetiva Capital Management will handle retail distribution within Nigeria. FirstCap has been tasked with managing institutional investor participation, particularly among pension funds.

The refinery, located in the Ibeju Lekki Free Zone, remains the world’s largest single-train crude processing facility. Built at a cost of $20 billion, it was commissioned in 2023 and began operations in 2024 after nearly a decade of construction.

With a processing capacity of approximately 650,000 barrels per day, the facility has already begun reshaping fuel supply dynamics in Nigeria and across Africa. It currently meets between 35 and 50 percent of Nigeria’s domestic petrol demand, while exports to other African markets continue to expand.

In recent months, the refinery has shipped multiple cargoes of refined petroleum products across the continent, reflecting rising demand amid global supply chain disruptions.

Beyond fuel production, the facility produces up to three million metric tonnes of urea fertiliser annually, supporting agricultural productivity and food security across the region. Expansion plans are also underway to scale up polypropylene production, a key input in manufacturing sectors such as packaging, textiles, and consumer goods.

Financial backing for the project has been significant, with the African Export-Import Bank underwriting $2.5 billion of a $4 billion syndicated loan. According to the bank’s leadership, investments of this scale are critical to strengthening Africa’s economic resilience and driving long-term growth.

The refinery’s economic footprint is already substantial, with over 150,000 direct and indirect jobs created, alongside extensive technical training programmes for Nigerian engineers.

Projections from the International Monetary Fund suggest the refinery could boost Nigeria’s non-oil GDP by 1.5 percent and increase foreign exchange earnings by up to $5.5 billion.

As production ramps up, Nigeria is expected to transition from a net importer of refined petroleum products to a net exporter—marking a major shift in its energy balance.

Regulators, including the Securities and Exchange Commission, are currently reviewing a proposed share structure that would allow investors to purchase shares in naira while receiving dividends in US dollars. The model is designed to attract foreign capital while hedging against currency volatility.

The company is expected to file its prospectus in April, followed by a nationwide investor roadshow. Subject to regulatory approvals and market conditions, trading could commence on the Nigerian Exchange Group between June and July.

Market watchers describe the planned listing as a defining moment for Africa’s financial ecosystem, highlighting the continent’s growing capacity to fund large-scale industrial projects internally.

If successful, the Dangote Refinery IPO could set a new benchmark for capital raising in Africa—while reinforcing Nigeria’s position as a key player in global energy markets.

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The MOFI Real Estate Investment Fund (MREIF) has recorded a Net Asset Value (NAV) of N270.29bn at the close of the 2025 financial year, reflecting steady growth from the N261.83bn reported at the start of the fourth quarter.

Details contained in its Q4 2025 investor report filed with the Nigerian Exchange Limited show that the fund maintained strong performance momentum within its first year of operations.

Structured as a N1tn shelf programme, MREIF operates as a closed-end real estate investment fund under a unit trust scheme, regulated by the Securities and Exchange Commission. The fund commenced operations on March 17, 2025, following full subscription and regulatory clearance for its N100bn Series 2 issuance.

Income Performance and Investor Returns

For the 10-month period ended December 31, 2025, the fund posted total income of N36.54bn, largely driven by interest income on financial instruments and loans.

Commercial investors earned an impressive annualised yield of 19.28 percent, underscoring the fund’s attractiveness in Nigeria’s capital market space.

ARM Investment Managers Limited, the fund manager, announced a final distribution for 2025:

• Series I investors: N3.7468 per unit

• Series II investors: N9.7192 per unit

Investors on the register as of February 20, 2026, will receive dividend payments electronically on February 27, 2026.

Mortgage Expansion Across 21 States

Beyond asset growth, MREIF intensified efforts to address Nigeria’s housing deficit.

By December 31, 2025, the fund had:

• Originated 1,082 mortgages

• Disbursed N70.72bn

• Covered 21 states and the Federal Capital Territory

• Onboarded 18 Eligible Financial Institutions (EFIs), including eight commercial banks and 10 mortgage banks

• Executed two offtake guarantees worth N5bn

In Q4 alone, the fund disbursed N23bn to finance 336 mortgage applications.

The fund’s strategy combines concessionary public capital with private sector funding to provide single-digit interest rate mortgages through partner financial institutions.

Strong Credit Ratings

Sponsored by the Ministry of Finance Incorporated, the fund has secured:

• Aaa rating from Agusto & Co

• AA rating from Global Credit Rating (GCR)

These ratings reinforce investor confidence and the fund’s credit strength.

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Nigeria’s banking sector is undergoing one of its most comprehensive reforms in decades, as deposit money banks move to raise an estimated ₦4.14 trillion in fresh capital ahead of the March 31, 2026 recapitalisation deadline, according to a report by global professional services firm, Deloitte.

The recapitalisation exercise, introduced by the Central Bank of Nigeria (CBN) in April 2024, is aimed at strengthening financial stability, improving resilience to macroeconomic shocks, and positioning the banking system to support Nigeria’s ambition of building a $1 trillion economy by 2030.

Under the new framework, the CBN significantly raised minimum capital requirements, setting thresholds at ₦500 billion for commercial banks with international licences, ₦200 billion for national banks, and ₦50 billion for regional banks.

Merchant banks are required to maintain ₦50 billion, while non-interest banks must hold between ₦10 billion and ₦20 billion, depending on licence scope.

Unlike previous recapitalisation exercises, the apex bank adopted a stricter definition of qualifying capital, limiting it to paid-up share capital and share premium, while excluding retained earnings and other reserves.

This change effectively compelled most banks to raise new funds, even those that previously appeared adequately capitalised.

Deloitte noted that the policy shift became necessary as banks’ capital buffers were eroded by prolonged macroeconomic pressures, including high inflation, rising interest rates, exchange rate volatility, and foreign exchange illiquidity.

The firm said the recapitalisation would enable Nigerian banks to take on larger risks, strengthen liquidity positions, and expand their capacity to absorb losses arising from domestic and external shocks.

Progress so far suggests the sector is responding positively. CBN Governor Olayemi Cardoso disclosed that 27 banks have raised capital through public offers and rights issues, with 16 banks already meeting or exceeding the new minimum capital requirements well ahead of the deadline.

Speaking at the recent Bankers’ Dinner in Lagos, Cardoso said the recapitalisation programme remains on track, noting that stress tests conducted during the year confirmed the sector’s resilience, with key financial soundness indicators remaining within regulatory benchmarks.

He added that, with months left to the deadline, several banks are well positioned to comply comfortably, while others are making steady progress.

To safeguard the trillions of naira being injected into the financial system, the CBN is redesigning its credit-risk framework, focusing on stronger governance, improved transparency, and firmer accountability. The objective, according to Cardoso, is to prevent the boom-and-bust cycles that followed past recapitalisation efforts.

As part of the reforms, the apex bank has established a dedicated Compliance Department to oversee financial crime supervision, market conduct, corporate governance, enterprise security, and Environmental, Social and Governance (ESG) compliance.

In addition, the Credit Risk Management System (CRMS) has been upgraded and web-enabled, allowing banks to submit statutory returns and conduct real-time borrower checks, with plans underway to integrate the platform more closely with banks’ internal systems.

At its 303rd Monetary Policy Committee (MPC) meeting, the CBN-led committee expressed satisfaction with the banking system’s resilience and urged the apex bank to ensure a smooth conclusion of the recapitalisation process.

Beyond financial stability, regulators view the exercise as critical to Nigeria’s long-term growth strategy. Cardoso said the current capital base of Nigerian banks would be insufficient to finance a $1 trillion economy without decisive reforms.

CBN Deputy Governor Emem Usoro described recapitalisation as a key pillar of national economic planning, while UBA Group Managing Director, Oliver Alawuba, said the policy would strengthen banks’ ability to withstand shocks and fund long-term development.

Despite the higher capital thresholds, the CBN has reassured the public that the sector remains stable, noting that the non-performing loan ratio is within the five per cent prudential limit and liquidity ratios remain above regulatory minimums.

Analysts say the success of the recapitalisation programme will be critical in determining not only the future strength of Nigeria’s banking sector but also its capacity to drive sustainable economic growth in the coming years.

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