Abiodun Jimoh
Dangote Petroleum Refinery (DPR) has forged a strategic partnership with US industrial giant Honeywell International Inc., paving the way for its planned 2026 public listing and supporting the Dangote Group’s Vision 2030 expansion strategy. The collaboration will enable the world’s largest single-train refinery to double its processing capacity from 650,000 to 1.4 million barrels per day.
According to BusinessNg Newspaper’s latest analyst review, the deal strengthens DPR’s market position while addressing critical financing and operational needs. A $4 billion syndicated facility, led by Afreximbank, refinanced the company’s $3.65 billion debt, providing liquidity for ongoing operations. Expansion financing is expected through a mix of operating cash flows ($6–8 billion), strategic investor equity ($5–8 billion), and development finance ($2–4 billion), covering the projected $13–17 billion expansion costs.
Key factors for IPO success include sustained Brent crude prices above $70 per barrel, approval for dollar-denominated dividends, and strategic investor participation. Analysts note that while the $18–22 billion IPO valuation is reasonable, margins of safety are thin, making regulatory approvals, crude supply security, and market conditions critical for investors.
The partnership underscores Nigeria’s drive to consolidate domestic control of strategic energy assets, attract global capital, and accelerate refinery-led industrialization. For retail investors, participation is recommended as a long-term Vision 2030 play, with limited allocation due to sector and macroeconomic risks.
BusinessNg concludes that, with effective execution and favorable conditions, DPR’s refinery is poised to become a cornerstone of Nigeria’s energy and industrial transformation in the coming decade
