Africa’s richest man Aliko Dangote to cut detergent imports, plans 400,000 tons LAB output

Expectations are building around the expansion of assets tied to Aliko Dangote’s energy and industrial holdings, as his flagship refinery business moves closer to a potential pan-African initial public offering that could raise as much as $50 billion. Alongside the listing plans, the company is also widening its operations into petrochemicals, a shift aimed at strengthening its role in industries that rely heavily on imported raw materials across Africa.

The business, operated through Dangote Petroleum Refinery and Petrochemicals, plans to produce 400,000 metric tons of linear alkylbenzene (LAB) a year. LAB is used in detergents and household cleaning products, a segment in which Nigeria and other African markets rely on imports. The project will use Honeywell processing technology, but financial terms were not disclosed. The move extends the refinery beyond fuels into petrochemicals used in consumer goods supply chains across Nigeria and regional markets.

Built at about $22 billion

Located in the Ibeju-Lekki Free Zone in Lagos, the refinery is designed to process 650,000 barrels of crude oil per day, making it one of the largest single-train facilities of its kind globally. It was built at a reported cost of about $22 billion, though some estimates place total investment closer to $20 billion. The facility was commissioned in 2023 and reached full operational output in early 2026. Ownership is largely held by Dangote Industries Limited with a 92.3 percent stake valued at $18.68 billion, while the Nigerian National Petroleum Corporation holds 7.25 percent.

Financing has included a mix of syndicated lending and development support. The refinery secured a $4 billion senior loan, with the African Export-Import Bank providing $2.5 billion, alongside a separate $1 billion working capital facility. Beyond domestic supply, the refinery has begun exporting refined products to markets including Ghana, Cameroon, Togo and Tanzania, easing regional reliance on imported fuel. It is also scaling up fertilizer exports, producing about 3 million metric tons of urea annually as trade flows shift across key markets.

Multiple African exchange listings planned

Expansion plans remain in focus, with capacity expected to rise to 1.4 million barrels per day over the next three years under a broader $40 billion investment program. Against this backdrop, the planned share sale could open as early as May, with listings expected on multiple African exchanges. The offering may involve 5 percent to 10 percent of equity and is designed to raise up to $5 billion, with participation targeted from as many as 2 million investors.

At a projected valuation of $50 billion, the refinery would rank above Johannesburg-listed Naspers, valued at about $44 billion, and Gold Fields at $43 billion. The primary listing is expected on the Nigerian Exchange between June and July 2026, following a prospectus submission to regulators in April and a retail investor roadshow in May. Market participants say the structure could broaden access to African capital markets while drawing in both local and international investors.