Nigerian billionaire and serial investor, Otedola commits $100 million for stake in Dangote refinery ahead of IPO

Nigerian billionaire Femi Otedola has committed $100 million to the upcoming private placement of the Dangote Refinery, marking a major reversal from comments he made just weeks ago denying any financial involvement in the mega-project.

• Femi Otedola has pledged $100 million to the Dangote Refinery's upcoming private placement, reversing previous denials of involvement.
• His investment is part of a planned $2 billion private placement ahead of the refinery's initial public offering (IPO).
• Otedola previously denied financing the refinery, describing earlier reports as misinformation aimed at sowing discord among top Nigerian businessmen.
• He sold his stake in Geregu Power Plc to raise funds for this deal, potentially benefiting from acquiring shares before the IPO at a lower valuation.

Otedola announced the investment after leading senior executives of First HoldCo on a tour of the refinery complex in Lagos’ Lekki Free Zone.

The investment forms part of the refinery’s planned $2 billion private placement ahead of its anticipated initial public offering (IPO).

The announcement follows a recent controversy sparked by viral claims that several Nigerian billionaires, including Tony Elumelu, Otedola, and Mike Adenuga, helped finance the refinery during its construction phase or were approached by Aliko Dangote for funding support.

At the time, Otedola strongly denied the claims, insisting he had “not invested a single kobo, not one dollar, not one naira” in the refinery.

He also stated that Dangote never sought financing from him, Elumelu, or Adenuga, describing reports suggesting otherwise as “calculated mischief” aimed at creating division among Nigeria’s top business figures.

The latest investment announcement now formally places Otedola among the refinery’s incoming investors as the project transitions toward public ownership.

How Otedola could benefit from the deal

The billionaire revealed that he sold his stake in Geregu Power Plc partly to free up capital for the Dangote refinery investment.

By entering through the private placement stage before the IPO, Otedola could secure shares at a lower valuation ahead of broader public participation.

In October 2025, Dangote said the refinery could sell up to a 10% stake during the listing process, a move Bloomberg estimated could value the business at around $50 billion.

Analysts say the investment also gives Otedola exposure to what could become one of Africa’s most strategically important energy assets, particularly as Nigeria and other African economies move to reduce dependence on imported refined petroleum products.

The 650,000 barrels-per-day Dangote Refinery, whose total project cost has been estimated at between $20 billion and $23 billion, is increasingly reshaping fuel supply dynamics in Nigeria and across West Africa as refining operations expand.