Open Letter: Why Dangote Refinery Should Consider a Controlling-Stake IPO

I commend Alhaji Aliko Dangote and the Dangote Group for investing in the refinery and creating jobs that would otherwise have gone abroad through fuel imports. My view is that, if the Federal Government will not restrict fuel imports, the refinery should consider an IPO that sells a controlling stake to public and institutional investors. This could help reduce debt, broaden ownership and strengthen professional management while allowing the founder to retain a meaningful stake. I estimate that selling 60% of the refinery could raise substantial capital to clear outstanding loans and possibly finance further expansion. A less indebted refinery may be better positioned to compete and lower fuel prices for consumers. Founders of major global companies have often reduced their ownership after listing without losing their legacy. In my opinion, wider ownership of the refinery could make fuel more affordable and give more Nigerians a direct stake in its success.

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