Dangote Refinery IPO: What Tax Applies to Dividends and Share Profits?

The Dangote Petroleum Refinery and Petrochemicals IPO is open to eligible investors at ₦525 per share, with a minimum subscription of 10 shares. The offer runs from 14 September to 13 October 2026. Investors should understand the tax implications alongside the potential returns. Dividends declared by the company are subject to 10% withholding tax, deducted before payment. For example, a ₦100,000 dividend would leave an investor with ₦90,000 after the deduction. Profits made when selling the shares may also be taxable under the Nigeria Tax Act 2025. However, gains may be exempt where total share-sale proceeds are below ₦150 million and the gain does not exceed ₦10 million within 12 consecutive months. Relief may also apply when proceeds are reinvested in shares of a Nigerian company within the same year of assessment. Keep subscription, allotment, dividend and sale records from the start. Investors should read the approved prospectus, use authorised subscription channels and remember that SEC approval is not a guarantee of returns.

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