Nigerian billionaire Femi Otedola to pour part of $750 million warchest into Dangote Refinery

Nigerian billionaire Femi Otedola is preparing to pour part of his $750 million warchest from the sale of his majority stake in Geregu Power into the planned public listing of Dangote Petroleum Refinery & Petrochemicals, deepening his exposure to two of Nigeria’s most closely watched corporate stories at a time when investor interest around the refinery continues to build. Otedola, chairman of First HoldCo Plc, disclosed that he has secured an allocation of shares worth $100 million in the refinery’s private placement, describing the move as both personal and strategic after years of following the mega refinery’s development.

Speaking during a visit to the refinery complex in Lagos, Otedola said the decision to sell his 77 percent stake in Geregu Power was partly tied to his intention to participate in the refinery’s share offering. “On a personal note, I’ve appealed to him; I’ve been here with him 25 times,” Otedola said during the visit. “So, my compensation is that he’s going to allocate to me shares worth $100 million in the private placement. That’s one of the reasons I sold my stake in Geregu Plant to come and invest my proceeds in the IPO of Dangote Refinery.”

Femi Otedola targets Dangote Refinery

The remarks offered a rare glimpse into the thinking behind one of the biggest transactions involving a Nigerian billionaire in recent months. On Dec. 29, 2025, Otedola exited most of his position in Geregu Power in a deal valued at $750 million, according to people familiar with the transaction. The sale was executed through MA’AM Energy’s acquisition of a 95 percent equity interest in Amperion Power Distribution Company Limited, the vehicle through which Otedola controlled most of his holdings in Geregu. The transaction transferred the indirect controlling interests held by Calvados Global Services Limited and Otedola to MA’AM Energy.

The move marked a major shift for a businessman long associated with Nigeria’s power sector. Geregu remains one of the country’s leading electricity generation companies, with installed capacity of 435 megawatts. But Otedola’s latest capital allocation signals growing interest in the refining and downstream petroleum business as Nigeria pushes to reduce dependence on imported fuel products. The planned investment also comes as demand for participation in the Dangote Refinery continues to gather pace ahead of its proposed Initial Public Offering. 

During the Lagos visit, Dangote said requests from investors seeking exposure to the refinery had already approached $2 billion, underscoring expectations surrounding what could become one of the largest corporate listings ever attempted on the African continent. Dangote is looking to raise as much as $5 billion through a potential sale of up to 10 percent of the refinery business. Based on those terms, the transaction could value the refinery at $50 billion. Such a valuation would place the facility among the most valuable industrial assets in Africa and open ownership of the business to a wider pool of institutional and retail investors. 

Industrial expansion gains fresh momentum

Located in the Ibeju-Lekki Free Zone, the refinery has emerged as one of the most significant industrial projects undertaken in Nigeria in decades. The facility has processing capacity of 650,000 barrels per day and began operations in 2024 after years of construction setbacks and financing negotiations. Built at an estimated cost of between $20 billion and $22 billion, the refinery reached full operational capacity in February 2026.

The refinery has become key to Nigeria’s fuel supply chain as authorities seek to cut reliance on imported refined petroleum products. Firmer global oil prices and stronger domestic fuel demand have also improved the refinery’s commercial outlook ahead of the planned listing. Dangote is already preparing for another phase of expansion, with plans to increase refining capacity to 1.4 million barrels per day within the next three years under a broader $45 billion investment program spanning refining, petrochemicals, fertilizer and logistics operations.

For Otedola, the planned $100 million refinery investment adds to an increasingly aggressive series of moves across Nigeria’s corporate sector. Beyond the refinery deal, he has also been increasing his position in First HoldCo, tightening his grip on the financial institution that controls Nigeria’s oldest bank, First Bank. His latest acquisition involved shares worth N43.4 billion ($31.7 million), purchased at an average price of N79 per share. The transaction increased his holdings from 8,055,314,486 shares, representing 18.12 percent, to 8,604,850,139 shares, or 19.36 percent of the company, bringing him closer to the 20 percent threshold.