Business mogul and Chairman of First HoldCo, Femi Otedola, has announced plans to invest $100 million in Dangote Refinery, marking a fresh boost to the multibillion-dollar energy project.
Otedola made the disclosure on Wednesday after leading a delegation of top executives from First HoldCo on a visit to the refinery owned by Africa’s richest man, Aliko Dangote.
The investment is part of a broader private placement exercise targeting about $2 billion ahead of the refinery’s eventual public listing.
“Personal commitment to Dangote project”
Otedola said his decision followed repeated engagements with Dangote and a personal interest in supporting the refinery’s expansion and long-term vision.
He noted that his investment would come through allocated shares in the ongoing private placement, describing it as a strategic shift of his portfolio.
According to him, “From a personal note, I’ve appealed to him. I’ve been here with him 25 times, so my compensation is he’s going to allocate to me shares worth $100 million in the private placement.”
He also revealed that proceeds from the sale of his stake in Geregu Power would be redirected into the refinery investment.
Dangote Refinery IPO plans gather momentum
The development comes as Dangote Refinery prepares for a potential initial public offering (IPO), which could see up to 10 percent of the company floated on the market.
Reports suggest the refinery could be valued at as much as $5 billion during listing, with projections pushing overall valuation toward $50 billion.
Dangote has previously stated that the IPO is aimed at widening ownership and allowing more Africans participate in the continent’s industrial growth.
Strategic push for energy investment
Otedola’s latest move adds to growing investor confidence in the refinery, which is regarded as one of the largest single-train refineries in the world.
Analysts say the investment signals renewed momentum in Nigeria’s downstream oil sector and could attract more high-net-worth participation ahead of the listing.