The management of Dangote Refinery has announced its intention to pay dividends in United States dollars to its shareholders as part of a strategic initiative to attract significant foreign and local investment into the massive industrial project. The President of the Dangote Group, Aliko Dangote, disclosed this during a strategic briefing, noting that the decision is primarily aimed at providing a robust hedge against the ongoing fluctuations and devaluation of the Nigerian naira. By offering returns in a stable global currency, the refinery hopes to position itself as a premier investment destination for institutional and private investors seeking to protect their capital from local currency risks.
This policy shift comes as the refinery ramps up its operations, having already started the production and supply of diesel and aviation fuel to the Nigerian market. The facility, which is situated in the Lekki Free Trade Zone, represents one of the most ambitious industrial undertakings in Africa and is expected to significantly reduce Nigeria’s dependence on imported petroleum products. Dangote explained that paying dividends in dollars would not only benefit foreign investors but would also provide local shareholders with a valuable asset that retains its international value over time.
In addition to the new dividend policy, the company is making advanced preparations for a dual listing on the Nigerian Exchange and the London Stock Exchange. This move is intended to broaden the ownership base of the refinery and subject its operations to international scrutiny and world class corporate governance standards. Market analysts have described the dollar denominated dividend offer as a game changer in the Nigerian capital market, suggesting that it could set a precedent for other large scale companies that generate a significant portion of their revenue in foreign exchange.
The refinery is designed to process 650,000 barrels of crude oil per day and is equipped to produce a wide range of refined products, including premium motor spirit, polypropylene, and various grades of fertilizer. As the facility moves toward full capacity, the management remains focused on ensuring that the project remains a profitable venture that delivers consistent value to its shareholders. The commitment to paying in dollars is seen as a clear signal of the refinery’s long term economic viability and its role as a major player in the global energy landscape.
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