What Does Dangote Refinery IPO Mean For Nigerians?

0:00HALO And welcome to Nigeria Daily brought to you by Media Trust. I am Luke Mann, a Wall, Agunon. The Dango Terror Finery IPO is generating discussions among Nigerians, particularly as the company prepares to offer shares to the public and bring millions of retail investors into its ownership. With a minimum subscription of 5,250 Naira, many Nigerians are now asking whether this is an opportunity to own a stake in one of Africa's biggest refineries. Today on the Nigerian Daily we are looking beyond the headlines to understand what the Dango Terror Finery IPO really means for Nigerians who may be considering putting their monies. Into its

1:05Dango Terror Finery plans to offer 4.1 billion ordinary shares at 525 Naira each. Potentially raising about 2.15 trillion if fully subscribed. The minimum subscription is 10 shares, meaning an investor can participate with 5,250 Naira. The offer is scheduled to open on September 14 and close on October 13, 2026. But the size of the offer is not the only thing attracting attention. The company says it is targeting up to 10 million retail investors that would mean potentially bringing millions of ordinary Nigerians into ownership of one of the country's biggest industrial projects. To understand what this means for Nigerian economy, I spoke to Dr. Yusho Aliu from the Institute of Professional Economists and Policy Management Abuja. IPO means initial public offer.

2:07It is an investment opportunity given to the public by a new company under new government policy and laws that allows Nigerians within the economy and outside the economy to participate in putting on their shares in the affairs of an industry within the economy. And the importance of that everybody should be a stakeholder. If not what they have invested, a big company that has international reputation and has a lot of prospect, they should not enjoy it alone. The essence of putting that initial public offer is to allow you, myself and the listener, to go and meet stock brokers, to find out the modalities of the price of the shares,

3:09the number of the shares, and the payment model for the shares. If that is concluded, that shows that an individual is now part of the ownership of that company. And that will give a lot of prospect for nationhood because if Don Quarte has origin from Kanu but has the industrial location in Lagos, then that can most talk Okachuku from Abia to be an investor. That can most talk Mr. Eckett from Al Quai Boom to be an investor. That can most talk Mr. Guam from Plattu to be part of the investment. And that is just the importance. All right, Doctor, you know talking about being part of its ownership now. If I am to ask you what rights does a small shareholder have in certain investment?

4:15But there is no any small shareholder, it only depends on the ambition of that shareholder. At this shareholder, everybody starts with a unit. And if you are, for instance, interested to have an offer, which is 525 Naira, but the minimum you can occupy is 10, 10 shares, which is about 5,000 plus. So that is the first ordinary share. It's no small share because at any point in time what is communicated to somebody that has a billion Naira, it's the same thing that will be communicated to you. And what it comes to what you write, each investor has one what you write. And you also have one what you write. So the essence of that is that these people that has a small shareholder in a company,

5:19can tomorrow acquire certain percentage. But it is also important to know that the public offer presently is between 5% to 10%, which is ultimately over a billion dollar investment. So a billion dollar investment is a conglomerate of shareholders that will pay that amount. And then tomorrow, even if now what is not existing, his family will continue. No single member of the family can fold up the company. That's the advantage of having a digital shareholder for the industry to have a lifetime investment, to have also a lifetime prospect. And it depends on how market behaves at different economic intervals. All right, so I haven't told those about some of these benefits now. You know, expectations are very high.

6:20And if the refund rate performs very well or well, let me just try to be that simple. How much of that benefits can ordinary Nigerians now realistically expect to feel? The ordinary Nigerians, the Nigerian today, is giving an opportunity to become an ordinary shareholder. I have the company, that is the first thing. The second thing, the efficiency of the company is glaringly clear. The initial capacity of production was 650,000 barrels per day. As I present, the prospect is that the refinery is producing over 700,000 barrels. And it has an intention of doubling the capacity in the next two years to 1.4 million barrels per day. And if you can have this as capacity, then definitely what the company is producing,

7:20what the industry is producing, is being supplied to the local markets. And that is why today we don't have the scarcity of refined products because the company is efficient in production. So the ordinary Nigerian is no longer joining Q to buy this product. It can access from each corner of the federation and also at an unprice. So when you begin to multiply the value chain of this refinery to the growth of Nigerian economy, you have to is multi-faceted. You go to agriculture, you find an ungotter, in fertilizer, you go to energy, you find an ungotter with automobile gas oil, with kilowatt production of energy. These are so the benefit that Nigerians are getting from this company in multiple. All right, I want to find out one before I let you go, Dr. Yushal.

8:20You know, in your expertise now as an economist, do you foresee any form of risk surrounding the refinery? There is no any investment that doesn't have as no investment that doesn't have associated risk. But the confidence and the resilience of the management is what gives the industry moving. One of the risks involved is the international crude oil price. If the international crude oil now is higher, by the time the international crude oil prices fall, then definitely the value of some of the shares will be dwindling. But looking at the prospect of ungotter investment beyond the shores of Nigeria,

9:20to put a southern part of Africa, definitely the company is strategizing to have an optional market, to have an optional production lines, and also to have an optional potential. So the government policy always remain at the high rates. And the policy of government that can affect the non-gotter refinery, it has to do with our position as a nation and position of our own and our position at the international global market. We don't need to interfere into world politics that is not going to be positive to us because we have seen how Iran attagated oil refineries in Saudi Arabia and other parts of the world. One of the associated risks that is attached to this refinery is an attack as a result of conflict that may result from its political misunderstanding or political misrepresentation at the global stage.

10:25That was Dr. Yusuf Aliu. From the Institute of Professional Economists and Policy Management Abuja. But while the opportunity to own a stake in the refinery may sound attractive, there's another question. What should Nigeria know before putting their money into it? Is by intention simply a way of owning a piece of the refinery or should investors be thinking about the potential returns, the risk and the company's future performance? To help us understand the investment side of the IPO, I spoke with Smyla Muhammad and a investment teacher and a financial management expert. What we can do is to project and say, well, based on this and this, that is taking into account a comparative analysis. Maybe we look at the prices of petroleum denominated dividends.

11:26If petroleum companies, Smyla to Dungote, have declared dividends in the past, what is the trend of those dividends? Then we can now project for Dungote along that line. But outside that, it's almost difficult to do it. We just hope for the best. So, you know, the company also talked about expansion. That is expanding to about 1.4 million barrels per day. Now, how? Yes. The importance is that expansion to this investment case. Well, the expansion of, or the proposed expansion of the Dungote refinery in Nigeria, initially, he expanded it from 650,000 barrels per day to 700,000. And now he has also planned to expand it to double the capacity.

12:28That means to make it into 1.4 million barrels per day. With that one, you have a sure bank that whoever buys this stock is buying into an excellent investment. Because he's not going to ask you to increase the price by share. No. It's the same price by share that will play out subsequently in this stock exchange. And I assure you that with the proposed expansion, which we project, we'll take place within the next two to three years, the value of the share, the share holding will more than triple. Because once you double the capacity of a Dungote refinery, you are likely to double the average dividends that they are going to pay. Now, curious, then I will make me ask, and I will even make people want to also know what, talking about the value of shares increasing or decreasing.

13:28What could make the shares rise or fall after listing? Okay. Let's start. The shares rise. The share price can rise. If the performance of the company is beyond the expectation of the shareholders, you will see the shareholders scrambling. I want to buy more of the company. Dungote refinery is below expectation. You will see the shareholders will begin to say, I want to sell. I want to sell. I want to go to another stock that has a higher profitability level. So, 100% smaller? Yes. You know, the majority of Nigerians are still trying to know more about shares and stock and how it all operates. Correct. If you had to explain the difference between only the piece of Dungote refinery

14:28and maybe making money from the shares, so an ordinary Nigerian, how would you explain it in the very simple terms? That's the story. Well, you see, initially, it would be difficult to explain to them. But based on the mass appeal, because it's the largest company we've ever had in Nigeria, which means it is now going to draw in at least maybe 1 million shareholders. And if this 1 million shareholders are well-dispassed in the Nigerian society across all the states, across all the local governments, that is the only time that ordinary Nigerians can begin to understand the benefit of buying shares. You see, I like going to China on two occasions when I went there.

15:31One day, I asked my Chinese friends, I said, well, all of you always looking at your smartphone and then are you playing games? Then they say, which games are we playing? Well, we are not playing any games. What we are doing is we are monitoring the performance of our shares in various companies. That's interesting. Yeah, very interesting. So, the stage in which China has reached such a stage that you come by a share in the morning and by tomorrow morning you sell it, because you have discovered that based on your analysis, it's not going to perform in the same way that you thought. So, with the diffusion of share holding across Nigeria society, more people will begin to understand and accept that it is better to buy shares and keep them to keep raw cash in your house or to put it in a deposit account in a bank.

16:37Much, much better for you to buy share to become a shareholder that means to want to own a piece of the company. Anytime you are not ready within 24 hours, you will say you are shares. No problem. And then there is another medium, medium advantage, which the Nigerian shareholder will need to know. If you have a share of, like for example, one million dollars and you have your share certificate, whatever, even though we don't have share certificate now, but you have an evidence of the shares. You can want your bank and borrow against that document. Say, okay, you have a share certificate of one million, then we can give you a loan of up to maybe 800,000 so that you can trade with it. Today, if you have a house value at one million or ten million and you go to a bank, it will take the bank almost six months to analyze to make you, to for them to rely that they will give you a loan

17:41based on the collateral of the real estate that you have that's the building. But this one, the banks will collect the certificate in the morning. In the afternoon, you will get your money because they know that the document evidence in position of the share is highly liquid, highly liquid. You can easily sell it because you will find people lining up. Say, immediately, don't go to share, it's available, we would like to buy it. And then you know what to put them in a line, in a line, some selling, some buy. Very few selling, very, very many people want to buy. That was Samayla Muhammad, an investment teacher and a financial management expats. You are listening to Nigerian Daily, let's take a short break, please stay with us. Every community has ordinary people doing extra ordinary things. They help the needy of lived vulnerable, serve with honesty and make life better for others.

18:44Without seeking recognition, do you know someone like that? Media Trust, publishers of Delhi Trust, Aminia, Trust TV, Trust Radio and Digital Trust is searching for its 2026 and Sanghi rules. Nominate that selfless individual today. Send us their name, phone number and their experience tool with photos or videos if available. Our reporters will verify the nominations and celebrate the selected heroes across all media trust platforms. Let all of those who make Nigeria better plays. Send your nomination to unsungheroesatdeliTrust.com. Media Trust, Celebrating Nigeria's True Heroes. Welcome back. This is Nigerian Daily coming to you from media trust. And today, we are looking at the Dango Teri Fanarii IPO and what it means for Nigerians who may want to become shareholders. The company is targeting up to 10 million retail investors with a minimum subscription of 5250. But investing is not simply about how much money you need to enter.

19:47There are also questions about the value of the company, the rights of shareholders, the risk involved and what happens if the investment does not perform as expected. So what should Nigerians know before subscribing? For more on the business and legal side of the offer, I spoke with Kasim Ogarbakurfi, a business expert. What the Nigerians are buying, they are buying, but on the ship of the company. People, Nongat Teri Fanarii belonged to Longatandhi's family. Now, it's made public. Which me and you can be a shareholder by the virtue of exercise, IPO initial public offer was just a minimum of 10 shareholder. 10 share, ordinary share will make you a shareholder of the company. You are ordinary shareholder. What it means that in the event that is any lost,

20:49you are ordinary shareholder. Every other person will be taken care before they look into you. But in most cases, this company comes to stay for beyond our lives. So as long as you are shareholder, even after this, you are formally will inherit what you own. So they can carry on from where you stop. And therefore your grandchildren, your grandchildren, can still be the owner. Of what you possess from that company. Nobody has the right to remove them, except they so choose to sell that shares. Thinking about being an ordinary shareholder and how every other person will be taken care of before it gets to you. If share prices fall, maybe after listing, can an investor take legal action simply because they lost some money.

21:50Because once shares falls or drops below your expectations, that will be counted as loss. Is there any legal perspective or legal action that can be taken by such an investor? No. The share arrives on fall. And the reason of the share does not mean you are not beneficial. Similarly, if there is a loss in the prices, you are also beneficial if and only if you sell your shares. But if you hold it, stock can come down and go up. That is part of the market. Today, we have seen first, we have seen around 145 NARA. A few years back, it was trading as low as 6 NARA. So the price rising and falling is depend on the performance of the company and has nothing to do with you as long as you do not sell your shares.

22:54Even if this shares multiply 10 times from 5 NARA and become 5 TOW THEM. If you did not sell, what do you benefit from it? Nothing. Similarly, if this stock decided to come as low as 100 NARA, if you did not sell, you did not lose anything. Your ordinary share remains the same, in respect of the price. Okay, you know, talking about shares going up or down now, just for education, say, kind of your own expertise, what could be possibly behind this shares falling and rising? The shares fall and rise depend on the market situation. Okay. If there is more willing buyer, that is there is demand, the price will go up. Because when there is more demand and let's apply, the only way is for the price to go up.

24:00If there is more willing seller and less buyer, the price will fall down. That is one. Two, if the company is not performing, which is very unlikely, because petroleum is part of the energy that is needed all the times. If you don't need PMEERS, you may need DISON. If you don't need DISON, you may need GAS. If you don't need GAS, you may need jet oil. They are producing more than five different products. And at any given time, you will see there is a need of one or the other. And take the case of Nigeria, when there is no petroleum, what happened? Crisis all over. Now, by the batch of these vineary, they can produce what we can consume. And our neighbor country can also buy from him, including Europeans. And this is the beauty of it.

25:02In the months of June, the laboratory pioneer become a single major supplier of jet A1 to Europe. More than what you can supply for them. So he can see the beauty of it. Yes, we can actually see. So what last one before we let you go, Kasim Garba? You know, still about this year's, from your experience and your practice. What are the biggest misconceptions Nigerians should avoid about buying shares generally? Well, I may not say they have misconception, but they lack the opportunities. Because shares, before you can acquire shares now, you must have a account with central security clearing system. And the only institute that provides you with the CSCS account is a broker dealer. Unfortunately, we have about 188 licensed trading holders.

26:06But most of them concentrate on legacy. Except the very few of us decided to extend our branch like a casino, so caught up, Kanau, Gambay, Joss, Kaduna and all. But most of them, they are legacy. So how do you be able to assess this? Except you are able to go to their office for those who have branches there, then you apply. They will open the CSCS account. That will enable you to hold their shares. Because today, what we call E allotment, no more shares certificate. If you ask any shareholder of MTN, air 10, war food, Gregoopawa, ask them to do their shares certificate. The answer is no. Because they came at the time that we no longer produce shares certificate. What you will have is E allotment through your CSCS statement. And these are account that only open by trade dealing holders.

27:10And in the notes, you see that majority of the state data have. Today, I have an office in Sakoto, but there is none except me in Sakoto and none in Zamparabusa, none in Kaby. So you can see what give us disadvantage for not having this. And most of our state investment company which ought to have a license, they don't have. They shall have a debt sporties that will enrich their people. Because when you have people of the state acquire their shares, by the time they declare dividend, the 10% was sold in stock who will be paid to the state. So is for the interest of the state for their indigestion on the shares. Because when they want is they benefit from the dividend they pay to the shareholder, they will benefit those holding tax of 10%. So who supposed to ensure these people are not late is the state.

28:11And then forget that recently we announced that our exchange performed the best in the world. But who benefit only the shareholders? Today I ask anybody that has passed by. What is it to date trading around 145 NARA? This was the share that we privatized in 1992 at 2 NARA. Even the recent offer in 2024, it was at that 26 NARA. So assuming you acquire it at 26 NARA, now is 145 NARA. It again how many times more than 6 times less than 2 years. So the benefit go to the shareholder and you have to be a shareholder before you benefit. That was customer Garba Kuruffy, a business expert. And that wraps up this episode of Nanyuan Daily, catch us on both sprouts dailytrust.com,

29:11trustradio.com.ng, Apple Podcasts, Tune in and Spotify. For sponsorship and advert placement please contact us on 081-0557-835 I am Luqman Awwal, Agonol. Thank you for listening. Thank you for watching.