Femi Otedola has committed $100 million to the upcoming private placement of the Dangote Refinery, marking a major shift after previously dismissing reports linking him financially to the mega-project.
The investment is expected to form part of a planned $2 billion private placement being arranged ahead of the refinery’s anticipated initial public offering (IPO).
The development comes just weeks after Otedola publicly denied claims that he was financing or acquiring a stake in the refinery owned by Africa’s richest man, Aliko Dangote.
At the time, Otedola described the reports as false and accused promoters of the rumours of attempting to create division among Nigeria’s leading businessmen.
However, fresh reports now indicate that the billionaire investor has formally pledged $100 million toward the refinery’s fundraising programme as the company prepares for its next phase of expansion and public listing.
Sources familiar with the transaction say Otedola recently sold part of his holdings in Geregu Power Plc to free up liquidity for the investment.
The move positions him among the major investors expected to benefit from acquiring shares in the refinery before its IPO, potentially at a lower valuation than what may be available once the company goes public.
The Dangote Refinery, located in Lagos, is regarded as one of Africa’s largest industrial projects and has remained central to Nigeria’s push to reduce dependence on imported refined petroleum products.
Since operations began, the refinery has attracted intense interest from investors, policymakers and global energy stakeholders due to its projected impact on fuel supply, foreign exchange savings and regional energy markets.
Otedola’s entry into the private placement is expected to further strengthen investor confidence in the refinery ahead of its planned public offering.
The billionaire businessman is widely known for strategic investments across Nigeria’s energy, banking and infrastructure sectors and has built a reputation for entering major ventures ahead of significant market growth.
Neither Otedola nor Dangote Refinery officials have publicly released additional details regarding the transaction or the structure of the private placement.
