Billionaire businessman Femi Otedola has revealed that he sold his stake in Geregu Power Plc to position himself for a $100m investment in the proposed initial public offering of the Dangote Petroleum Refinery.
Otedola made the disclosure during a visit by the board and management of FirstHoldCo to the Dangote Petroleum Refinery and Dangote Fertiliser Limited in Ibeju-Lekki, Lagos.
Speaking during a tour of the 650,000 barrels-per-day refinery, the Chairman of FirstHoldCo praised the President of Dangote Group, Aliko Dangote, describing the refinery project as a major step towards ending Africa’s dependence on imported petroleum products.
“He is a genius and one of the greatest men to emerge from Africa. What he has achieved is helping to liberate the continent from economic dependency and import reliance,” Otedola said.
Otedola disclosed that he had repeatedly requested an allocation of shares in the refinery’s private placement and decided to divest from Geregu Power to free up funds for the investment.
“I have visited this refinery more than 25 times, and I have consistently appealed for $100m 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,” he said.
He also expressed confidence in Dangote Group’s planned expansion of refining capacity to 1.4 million barrels per day, noting that Africa’s growing demand for refined petroleum products justifies further investment in local refining infrastructure.
In his remarks, Dangote said the refinery’s planned public listing would be structured to allow ordinary Nigerians and Africans to participate in the wealth being created.
“We want ordinary Africans to participate in the value being created. 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 stated.
Dangote also disclosed plans for a proposed refinery project in East Africa with a projected refining capacity of 700,000 barrels per day, alongside polypropylene and base oil production facilities.
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According to him, construction on the project could begin within the next three to four years.
He added that the initiative was not initially part of the company’s Vision 2030 strategy, a development he said reflects the group’s rapid expansion across sectors.
Dangote further highlighted the group’s investments in cement, petrochemicals, fertiliser, and refining operations across Africa, noting that cement production capacity had risen to 55 million tonnes annually in 11 African countries.
“We have built businesses that address Africa’s critical needs and create long-term value for the continent.
“Africa must stop exporting raw materials and importing finished goods. That amounts to exporting jobs and importing poverty,” he added.
Chief Executive Officer of FirstBank Group, Olusegun Alebiosu, described the refinery as a landmark industrial project capable of inspiring economic transformation across Africa.
“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. It is about building Africa together,” Alebiosu said.
Dangote also revealed that investor demand for the refinery’s private placement had already exceeded $2bn ahead of its planned listing on the Nigerian Exchange.
“There is significant interest in both the IPO and the private placement. While we are not able to meet all requests, the strong demand reflects investors’ confidence in the refinery and in Africa’s industrial future,” he noted.