The Nigerian Exchange Group (NGX) Chairman, Umaru Kwairanga, during a visit to the Dangote Petroleum Refinery and Petrochemicals and Dangote Fertiliser Limited, urged Aliko Dangote, President of the Dangote Group, to list both entities on the Nigerian stock exchange. Kwairanga emphasized that such a move would reinforce the Dangote Group’s commitment to transparency, market leadership, and shared prosperity, building on the success of previously listed Dangote companies like Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries, which have significantly contributed to market liquidity and investor confidence. The visit, Kwairanga noted, underscored the NGX’s dedication to channeling investment capital towards national development objectives.
Responding to the appeal, Dangote confirmed the imminent listing of Dangote Fertiliser Limited, assuring potential investors of a dollarized business model to mitigate concerns about currency devaluation affecting returns. He projected substantial growth for the fertilizer business, aiming for $20 million in daily revenue within the next 40 months, translating to an annual revenue exceeding $70 billion and potential dividend payouts between $3 billion and $4 billion. This dollar-denominated approach aims to attract investors wary of Naira depreciation, thereby boosting investor confidence and driving capital inflows into the Nigerian market.
Dangote further revealed plans to expand the fertilizer plants and strengthen the cement business through investments in new facilities and clinker exports to West African countries. These strategic expansions aim to bolster revenue streams, enhance shareholder value, and contribute to Nigeria’s economic growth. He praised the NGX’s recent advancements and stressed the need for large-scale companies like Reliance Industries Limited, known for its massive shareholder meetings, to stimulate economic activity and promote wealth distribution in Nigeria. Dangote reiterated his commitment to supporting the NGX, emphasizing its crucial role in achieving Nigeria’s ambitious $1 trillion economy target.
The construction of the 650,000-barrel-per-day Dangote Petroleum Refinery, as described by Devakumar Edwin, Vice President of Oil & Gas at Dangote Group, represents a monumental achievement in Nigeria’s industrial landscape. The refinery, a testament to the Dangote Group’s vision and determination, involved the company acting as its own Engineering, Procurement, and Construction (EPC) contractor, demonstrating its in-house capabilities and self-reliance. This ambitious project has transformed Nigeria from a net importer of petroleum products to a net exporter, supplying refined products to various continents globally.
The potential listing of the Dangote Petroleum Refinery and Dangote Fertiliser Limited on the NGX holds significant implications for the Nigerian economy and the capital market. Listing these companies would not only inject significant liquidity into the market but also provide investors with access to two of Nigeria’s most promising industrial ventures. The move would further diversify the NGX’s portfolio, attract both local and international investors, and potentially elevate Nigeria’s status as a regional investment hub. Furthermore, the dollarized business model presented by Dangote Fertiliser offers a hedge against currency fluctuations, fostering greater investor confidence and potentially attracting substantial foreign investment.
The strategic expansions within the Dangote Group, coupled with the anticipated listings on the NGX, are poised to contribute significantly to Nigeria’s economic diversification and industrial growth. The refinery’s capacity to export refined products positions Nigeria as a key player in the global petroleum market, generating much-needed foreign exchange and boosting the nation’s GDP. The growth of the fertilizer business, alongside the cement operations, will further strengthen Nigeria’s industrial base, create employment opportunities, and contribute to food security through enhanced agricultural productivity. These initiatives, combined with a vibrant stock exchange, are crucial steps towards achieving Nigeria’s ambitious economic goals and promoting sustainable development.
