Nigeria: Dangote's giant IPO could transform start-up financing

The Nigerian stock exchange is going through a period of exceptional liquidity. After the record-breaking 4.65 trillion naira raised by local banks over 24 months, it is now the Dangote refinery's turn to attempt a historic feat. According to the media outlet TechCabal, billionaire Aliko Dangote's company is preparing an initial public offering (IPO) of $1.62 billion, an event that could redefine the future of private equity in the country.

This large-scale operation aims to offer 4.1 billion shares and targets up to 10 million retail investors via digital platforms. Currently, Nigeria has only 2.7 million retail investors. If this initiative succeeds, it will prove that there is a dynamic and mobilizable local savings pool capable of providing a viable exit route for venture-backed start-ups, which are currently suffering from a severe lack of exit options on the continent.

Until now, African start-ups have relied almost exclusively on mergers and acquisitions to allow their investors to recoup their funds. According to TechCabal, Africa recorded only one venture-backed IPO exit in 2025. Start-up founders are hesitant to list on the Nigerian Exchange (NGX) due to the depreciation of the naira, a lack of understanding of local regulations, and valuations that are often less attractive than those on American markets.

However, Nigeria already has the necessary infrastructure in place, notably with the NGX Technology Board and the provisions of the Nigerian Startup Act. The success of Dangote, which relies on a massive distribution network and more than 50 financial intermediaries, could pave the way. By stimulating interest from local investors, this historic IPO could finally offer African tech leaders, such as Flutterwave, a domestic financial market deep enough to support their growth.

Our perspective

This initiative by the Dangote refinery illustrates the need for Africa to build its own financial sovereignty. By mobilizing local savings to finance major industrial and technological projects, the continent reduces its dependence on foreign capital. Strengthening African stock exchanges is a decisive step toward economic self-determination and the retention of the value created by our talent on African soil.