FCMB Group has taken key roles in the initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE, with the oil company offering 4.1 billion ordinary shares at N525 each.

The offer, valued at about N2.15tn if fully subscribed, opened on September 14 and is scheduled to close on October 13.

FCMB Group is participating in the transaction through three operating companies. FCMB Capital Markets is a joint issuing house, CSL Stockbrokers is a stockbroker to the issue, while First City Monument Bank is a receiving bank and distribution agent, according to a statement from the bank.

FCMB Group Chief Executive, Ladi Balogun, said the offer gives Nigerians access to a world-scale business while demonstrating the growing reach of the country’s capital market.

“Retail investors are buying shares on their mobile phones through fintechs, banks and brokers,” he said. “High-net-worth individuals and institutional investors such as pension funds are bringing depth to the market, while international investors are bringing scale.”

He said the breadth of participation demonstrated the market’s capacity to help credible Nigerian companies raise capital at scale. Balogun also described the refinery as largely insulated from the macroeconomic and currency risks associated with the Nigerian economy.

“The number of such companies on our Exchange is growing,” he said. “This indicates the potential and direction of the Nigerian economy.”

President of Dangote Industries, Aliko Dangote, said the IPO was designed to broaden ownership of the refinery and enable Nigerians across different income and professional groups to invest in the business.

“This is an IPO for the people,” Dangote said. “We want Nigerians across various segments, including drivers, cooks, traders, employees and managers, to have an opportunity to own a stake in the refinery.”

Investors can subscribe through FCMB branches, business offices and the FCMB Mobile App, among other available channels. CSL Stockbrokers can advise retail investors on the potential merits and risks of the investment, while FCMB Capital Markets can advise High Net Worth Individuals and Qualified Investors.

The refinery can process about 700,000 barrels of crude oil per day and plans to expand to approximately 1.4 million barrels per day

The Dangote Petroleum Refinery has assured prospective investors that a drop in crude oil prices after the end of the ongoing US-Iran war will not directly affect its profitability.

The Vice President of Dangote Industries Limited, Devakumar Edwin, gave the assurance on Friday amid concerns that a fall in crude prices could weaken the returns on investments in the refinery’s ongoing initial public offering.

Edwin spoke during a media tour and briefing at the refinery, where he explained that the company’s profitability was driven by refining margins rather than the absolute price of crude oil.

“The crude price will not directly have an impact on profitability. Because, let us say, you are a trader. You are importing stationery and selling. You want to have a 20 per cent profit margin. Whatever your import price is, you will add the 20 per cent and keep your profit margin.

“So, your import price is not going to affect your profit margin because you are focused on your margins. So, the same way, when the crude price goes up, our product’s price will go up. When the crude price comes down, the product’s price will come down,” he stated.

Edwin was responding to concerns over the possible effect of the end of the US-Iran conflict on crude prices and, consequently, the profitability of the refinery and returns to shareholders.

He, however, said the ongoing geopolitical crisis could temporarily boost the refinery’s profitability, not because of higher crude prices but because of disruptions to the supply of refined petroleum products.

According to him, some refineries were unable to operate at full capacity because they could not obtain enough crude, while refineries in the Middle East were also unable to supply their usual volumes of products.

“But, during the war, there could be a little bit of extra profitability now. It is not because of crude, but because product movement is affected. So, irrespective of the crude price, the product price still goes higher because of a shortage in the market.

“Some of the refineries in the Middle East are not able to operate fully because they are not able to get enough crude. Also, all the products that used to come out from the Middle East are not getting into the market. So, there will be an extra profitability for this period,” Edwin stated.

He said the additional profitability from the supply disruption would eventually decline. “The extra profitability will go down. But when we made the investment of $20bn, we made our own calculation. How much is going to be our profit? How much will our returns be? So, we are on target as far as that is concerned,” he said.

Dollar dividends

The Dangote executive also assured prospective investors that the company’s president, Aliko Dangote, had declared that dividends from the refinery would be paid in foreign exchange.

Contrary to fears that the current N525 share value could drop after listing, Edwin said there would be value appreciation. “As a company, we believe that there is going to be a very good value appreciation. There will be very good returns in terms of dividends. And my president has even declared that the dividends will be in foreign exchange, in dollars,” Edwin said.

He explained that the refinery’s export earnings would provide the foreign exchange needed to support the dividend commitment.

“As I said, 50 per cent is going into exports. Now, the new refinery will let 100 per cent go for export because we are already exporting half of our production. As for the new refinery, practically everything will have to be exported. So foreign exchange generation is going to be huge. That is why he was able to give the assurance that we will be paying in dollars,” Edwin added.

The assurance came as the refinery seeks to attract millions of Nigerians as shareholders through the IPO. Edwin said Dangote Industries had deliberately chosen to offer shares in the refinery after the facility had been completed, commissioned and operated for some time, rather than raising equity while the project was still under construction.

He said this approach meant that investors were buying into an operating company with an established financial record. “So what we are achieving is that none of the shareholders is taking any risk,” he said.

Edwin noted that the company had released its first six months’ operational results, which prospective investors could examine before committing their funds. He said the Dangote Group had historically followed a policy of completing major projects, commencing operations and generating profits before going public.

The executive also urged individuals considering the IPO to conduct their own assessment before investing. “But you, as an individual, when you are putting your money, you can always do your own evaluation,” he stated.

Edwin also disclosed that the ongoing expansion of the refinery was targeted for completion within three years, although the company could finish the project earlier.

He said the cost of the expansion would be slightly lower than the original refinery project because several major infrastructure facilities were already in place. He listed the granite quarry, welding gases plant and port facilities among infrastructure that would not have to be built from scratch.

He added that the company was also seeking to reduce engineering and design costs because much of the expansion would replicate the existing refinery.

“But at the same time, we are also adding petrochemical sites, we are adding linear alkyl benzene, and we are adding up a propane dehydrogenation plant. So that will be the additional cost. But overall, there will be a slight reduction in cost compared to the first strike,” he stated.

Edwin disclosed that all the necessary licences had been obtained, while basic engineering had been completed and almost all detailed engineering work concluded. He said most of the equipment had already been ordered, with contracts signed and advances paid.

“We are at that stage where we have practically gone very far. So we are targeting three years. And probably we may be even doing faster than that,” he said.

On fuel blending, Edwin said the refinery could blend intermediate products where it had spare processing capacity but would rather process crude directly when that was more profitable.

He cited naphtha as an example, saying the refinery could convert the product into gasoline using spare capacity in some of its units. “If I have an extra capacity sitting idle. I can bring naphtha and then convert it to gasoline. So, I am adding value by filling that gap,” he said.

However, he said importing products solely for blending would not make economic sense if the refinery could produce the products directly from crude.

“If I am going to bring products only exclusively for blending, by cutting down my operation, it will be foolishness, because I will be losing money. I would rather produce my products from crude, because my production margins will be more profitable,” Edwin stated.

He added that the refinery would use blending where spare capacity made it commercially viable. “But where I have some extra capacity, I will take advantage by blending. But those refineries that are more closely focused on blending, they have no other alternative,” he said.

Edwin said the decision to take the refinery to the public market was also driven by Dangote’s desire to spread ownership of the business among Nigerians. He said the group had set a target of attracting at least 10 million shareholders, describing it as an unprecedented level of public participation.

“That is why we went a little bit faster, and our focus was to bring in at least 10 million shareholders, which has never been done in the history of the stock market in the world,” Edwin said.

He explained that the minimum subscription threshold was deliberately kept at N5,250 to make it possible for people across different income levels to participate. Edwin also disclosed that Dangote refinery employees were given an opportunity to acquire shares during the private placement.

“Almost all the people in the refinery who know what it is, they all become shareholders, including me,” he said.

The Federal Government and the Central Bank of Nigeria have signed an agreement to coordinate policies on inflation, public debt, government borrowing, liquidity and foreign exchange management as the country moves towards a new inflation-targeting framework.

The Memorandum of Understanding on Fiscal-Monetary Policy Coordination, signed in Abuja on Friday, establishes a formal framework for the Federal Ministry of Finance and the CBN to align key economic decisions without compromising the apex bank’s independence.

CBN Governor, Olayemi Cardoso, said the agreement would deepen cooperation in government cash management, debt issuance, liquidity forecasting, macroeconomic analysis and policy consultations.

“This Memorandum provides a structured framework for regular consultation, information exchange and policy coordination,” Cardoso said.

“It will strengthen collaboration in critical areas such as government cash management, debt issuance planning, liquidity forecasting, macroeconomic analysis and periodic policy consultations, thereby enhancing policy coherence and the effectiveness of economic management.”

The CBN governor said fiscal and monetary policies were complementary, as government expenditure, taxation and borrowing decisions affect economic activity, while monetary policy influences liquidity, interest rates and price stability.

According to him, the agreement is particularly significant as the CBN advances its transition towards an inflation-targeting framework. “The timing of this agreement is particularly noteworthy as the Central Bank of Nigeria advances its transition towards an inflation-targeting framework,” he said.

Cardoso noted that successful inflation targeting required not only effective monetary policy but also a supportive fiscal environment.

He explained that the ministry and the apex bank had collaborated for decades on inflation management, debt sustainability, budget financing, exchange rate stability and responses to economic shocks, but the new agreement would formally institutionalise the relationship.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the government intended to use the framework to prevent fiscal and monetary policies from pulling in different directions.

He stressed, however, that closer coordination would not undermine the CBN’s autonomy. “The operational independence of the Central Bank remains sacrosanct. Coordination must never become fiscal dominance. The CBN will retain full independence in pursuing price and financial-system stability,” Oyedele said.

The minister also disclosed that the government was targeting a sustainable reduction in inflation to single digits, arguing that monetary policy alone could not address Nigeria’s inflation problem.

“Our objective is to bring inflation sustainably into single digits and keep it there, and that cannot be monetary policy’s job alone,” he said. “Fiscal policy must play its part: disciplined, disinflationary spending; sound cash and liquidity management; efficient financing that does not crowd out the private sector.”

Oyedele identified food, imported costs, energy and logistics as structural drivers of inflation, saying the government would pursue stronger grain reserves, improved agricultural yields, irrigation and farm-access roads.

He also ruled out a return to fuel subsidy, warning that reversing the policy could destabilise public finances and the naira. “A return to subsidy would create a fiscal collapse, pressure the naira, and ultimately undermine the price affordability it seeks to provide,” he said.

Oyedele added that the ministry and CBN would share data on cash positions, financing plans, credit growth and foreign exchange flows more efficiently.

The CBN Deputy Governor, Corporate Services Directorate, Dr Muhammad Abdullahi, said the agreement had become more important amid global economic uncertainty and geopolitical tensions.

He cited developments in the Middle East, noting that disruptions to energy and shipping routes could simultaneously affect oil prices, government revenue, inflation, capital flows and financing conditions.

“This is why coordination matters. Coordination does not mean blurring respective mandates or compromising the independence required for effective monetary policy,” Abdullahi said.

He said the agreement would support regular consultations, information sharing, joint technical analysis, scenario planning and stress testing.

According to him, both institutions should be able to assess how changes in oil prices and production could affect fiscal revenue, foreign exchange inflows, external reserves, inflation, liquidity and financing conditions. “Uncertainty is not an argument for waiting; it is an argument for preparedness,” he added.

Also speaking, the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, said the agreement was designed to strike a balance between controlling inflation and supporting economic growth.

He said government spending decisions should not inadvertently fuel inflation, while monetary tightening should not unnecessarily constrain growth and employment. “The core objective of the framework is inflation and growth balance,” Omachi said.

He added that the pact would align government borrowing plans with money-market liquidity management to prevent public borrowing from crowding out credit to businesses and to improve interest-rate outcomes.

The permanent secretary said the framework would also cover exchange rate and revenue stability, foreign exchange management, resilience to external shocks and regular data sharing between the two institutions.