FirstHoldCo Chairman Femi Otedola says he sold his Geregu Power stake to invest $100 million in Dangote Refinery’s proposed IPO as Aliko Dangote promises ordinary Nigerians access to ownership
Femi Otedola Seeks $100m Stake in Dangote Refinery Ahead of IPO
Chairman of FirstHoldCo, Femi Otedola, has revealed plans to invest $100 million in the proposed initial public offering of Dangote Petroleum Refinery & Petrochemicals, disclosing that he sold off his stake in Geregu Power Plc specifically to position himself for the landmark investment.
Otedola made the revelation during a visit by the boards and management teams of FirstHoldCo Plc and FirstBank Group to the 650,000 barrels-per-day refinery and fertiliser complex owned by Dangote Group in Ibeju Lekki, Lagos.
Describing the refinery as one of the most transformative industrial projects in Africa, Otedola showered praise on President of Dangote Group, Aliko Dangote, calling him “a genius and one of the greatest men to emerge from Africa.”
“He is helping to liberate the continent from economic dependency and import reliance,” Otedola said. “I have visited this refinery more than 25 times, and I have consistently appealed for $100 million worth of shares during the private placement. That informed my decision to sell my stake in Geregu so I can reinvest in the Dangote Petroleum Refinery.”
The billionaire businessman also expressed confidence in the Group’s proposed expansion of refining capacity to 1.4 million barrels per day, noting that Africa’s growing energy needs justify continued investment in domestic refining infrastructure.
Responding, Dangote assured Nigerians and African investors that the refinery’s planned IPO would be inclusive, allowing ordinary citizens to become shareholders in the mega industrial project.
“We want ordinary Africans to participate in the value being created,” Dangote said. “What companies like Amazon and Apple achieved globally in terms of wealth creation is what we seek to replicate in Africa. We want people to invest, grow with us, and share in the prosperity.”
Dangote also disclosed plans for a new East African refinery with a projected capacity of 700,000 barrels per day, alongside polypropylene and base oil production facilities expected to commence within the next three to four years after construction begins.
According to him, the planned expansion was not originally captured in the Group’s Vision 2030 strategy, highlighting the speed at which the company is surpassing its long-term industrial growth targets.
Chief Executive Officer of FirstBank Group, Olusegun Alebiosu, described the refinery as a symbol of courage, ambition and visionary leadership capable of inspiring industrialisation across the African continent.
“If you see this refinery and realise that an individual conceived and delivered a project of this magnitude, already helping to stabilise energy supply across Africa, you cannot help but be inspired,” Alebiosu said. “We have delegates here from the United Kingdom and several African countries who will return home with renewed commitment to building industries that can transform their economies.”
Dangote further highlighted the Group’s dominance in cement, fertiliser, petrochemicals and refining, noting that its cement operations now span 11 African countries with installed capacity of 55 million tonnes annually.
“Africa must stop exporting raw materials and importing finished goods,” Dangote stated. “That amounts to exporting jobs and importing poverty.”
The business mogul added that investor appetite for the refinery’s listing on the Nigerian Exchange has remained exceptionally high, disclosing that demand for the ongoing private placement has already surpassed $2 billion.
“There is significant interest in both the IPO and the private placement,” he said. “While we are not able to meet all requests, the strong demand reflects investors’ confidence in the refinery and in Africa’s industrial future.”
