LAGOS, Nigeria — The planned $1.6 billion initial public offering (IPO) of the Dangote Petroleum Refinery could increase Nigeria’s number of active stock market investors by three to five times, according to Nigerian Exchange Group Chief Executive Temi Popoola.

The offering, launched by billionaire industrialist Aliko Dangote earlier in October, aims to attract millions of retail investors and is scheduled to close at the end of the month. If successful, it could become Africa’s largest IPO and significantly broaden public participation in Nigeria’s capital markets.

Popoola told Reuters at the Financial Times Africa Summit that the Nigerian Exchange Group was using the offer to strengthen links with other African stock markets, including those in Egypt, Kenya, Botswana and Ethiopia. Some arrangements involving depositary receipts, which allow investors to access shares across markets, are already in place, while others are awaiting regulatory approval.

Approximately five per cent of Nigeria’s population, or about 12 million people, participate in capital markets, Popoola said. However, only a fraction of those investors trade actively.

To reach a wider audience, the Dangote refinery offer is being marketed through channels such as WhatsApp, point-of-sale terminals and basic mobile phones. Popoola said these methods could help the exchange expand investor participation more quickly than traditional outreach strategies.

He added that the offering could also test demand for Nigerian investments beyond the domestic market and strengthen the country’s position as a source of capital for businesses operating across Africa.

Popoola said more Nigerian companies were considering listings in international financial centres, including London, New York and the Middle East. Seplat, Airtel Africa and Guaranty Trust Holding Company already have secondary listings in London, while Dangote Cement is planning a possible London listing as early as November.

He said improved infrastructure connecting stock exchanges could make it easier for investors to trade shares across markets and allow capital to move more freely. However, he warned that the growing availability of private financing was making it harder for exchanges to attract large companies seeking funding.

The Nigerian Exchange Group expects fewer than 10 Nigerian companies to list over the next year, Popoola said.

He also welcomed JPMorgan’s decision to include Nigeria’s domestic sovereign bonds in its new frontier-market local-currency index, describing renewed interest in the country’s debt market as a potential precursor to stronger equity investment.

Stay connected with AGCNewsNet for more news across Africa.