Otedola divests from Geregu to target Dangote Refinery IPO, seeks $100m share allocation

Billionaire businessman Femi Otedola has revealed that he sold his stake in Geregu Power Plc to free up capital for investment in the proposed initial public offering of the Dangote Petroleum Refinery.

Otedola disclosed this during a visit by the board and management of FirstHoldCo to the 650,000 barrels-per-day refinery and Dangote Fertiliser Limited in Ibeju-Lekki, Lagos.

Speaking during the tour, the chairman of FirstHoldCo described President of Dangote Group, Aliko Dangote, as one of Africa’s most remarkable industrialists, saying the refinery represented a major step towards reducing the continent’s reliance on imported petroleum products.

According to him, his interest in the refinery informed the decision to dispose of his holdings in Geregu Power.

“He is a genius and among the greatest men to come out of Africa. What he has achieved is helping to free the continent from economic dependence and import reliance.

“I have visited this refinery over 25 times and each time I have continued to request $100 million worth of shares in the private placement. That was why I sold my Geregu stake so I can reinvest in the Dangote Petroleum Refinery,” Otedola stated.

He also expressed optimism about plans to increase the refinery’s capacity to 1.4 million barrels per day, noting that Africa’s growing demand for refined petroleum products justified further expansion in local refining.

Responding, Dangote said the planned public listing of the refinery would provide an opportunity for ordinary Nigerians and Africans to participate in the wealth being created by the project.

“We want ordinary Africans to benefit from this value creation. What global companies like Amazon and Apple achieved in wealth generation is what we are trying to replicate in Africa. We want people to invest, grow with us and share in the prosperity,” he said.

Dangote further revealed plans for a new refinery project in East Africa with a projected refining capacity of 700,000 barrels per day, in addition to proposed polypropylene and base oil production facilities.

According to him, construction on the project could begin within the next three to four years.

He noted that the initiative was not originally included in the group’s Vision 2030 strategy, adding that the company was already exceeding its long-term growth projections.

Dangote also highlighted the expansion of the group’s cement business across 11 African countries, stating that production capacity had risen to 55 million tonnes annually, supported by clinker export terminals aimed at boosting regional trade.

“Africa must stop exporting raw materials and importing finished products. That is equivalent to exporting jobs and importing poverty,” he added.

Chief Executive Officer of FirstBank Group, Olusegun Alebiosu, described the refinery as a bold industrial achievement capable of inspiring large-scale investments across the continent.

“If you see this refinery and understand that one individual conceived and delivered a project of this scale, helping to stabilise energy supply across Africa, it is difficult not to be inspired.

“We have delegates from the United Kingdom and different African countries here today who will return home motivated to build industries that can transform their economies,” Alebiosu said.

Dangote added that investor demand for the refinery’s planned listing on the Nigerian Exchange had remained strong, disclosing that requests during the private placement had already surpassed $2 billion.

“There is huge interest in both the IPO and the private placement. Unfortunately, we cannot satisfy all requests, but the level of demand shows investors’ confidence in the refinery and Africa’s industrial future,” he stated.