The Nigerian capital market is on the cusp of a historic upswing as Africa’s richest man, Aliko Dangote, prepares to list Dangote Fertiliser Limited on the Nigerian Exchange (NGX).
The anticipated listing is sparking optimism across the financial ecosystem, with investors, regulators, and analysts viewing it as a potential catalyst for a new capital market boom.
Already, the President of Dangote Group, Aliko Dangote, had assured that the fertiliser business has strong growth prospects, with projected daily revenue of $20 million and long-term earning potential of $70 billion, investors are impatiently to take positions are shareholders of the business.
In the short term, the company is poised to generate approximately $7 million in daily revenue for the Federal Government through the export of 16,000 tonnes of fertiliser within the next two years.
In a recent high-profile visit by the board and management of Nigerian Exchange Group to Dangote’s sprawling refinery and fertiliser complexes in Lagos, key stakeholders expressed resounding support for the listing.
The Group Managing Director of NGX Group, Temi Popoola, said the Exchange was fully equipped to mobilise long-term capital for transformative ventures like Dangote Fertiliser.
“In 2024 alone, Nigerian investors committed over N2 trillion into banking stocks. With this listing, we are poised to channel similar enthusiasm into industrial growth,” Popoola said.
Similarly, Jude Chiemeka, CEO of Nigerian Exchange Limited, added that the listing would demonstrate NGX’s depth and ability to accommodate large-cap listings. “Our investor base and regulatory framework are ready for this,” he said.
Aliko Dangote himself described the move as a game-changer for the market, as he stressed that the dollarised nature of Dangote Fertiliser’s operations would protect investors from naira depreciation.
“The concern among investors has always been that by the time they receive dividends in ten years, the naira will have lost value. That’s why we’re coming with a dollarised model,” Dangote explained.
The industrialist also revealed aggressive expansion plans for the fertiliser business, aiming to scale production to generate $20 million in daily revenue, targeting over $3 billion in annual dividends in the long term. “We always think big,” he declared.
The expected capital market boom from Dangote Group in not limited to the fertiliser business as the Chairman of NGX Group, Umaru Kwairanga, used the occasion to urge Dangote to also consider listing the Dangote Petroleum Refinery.
The estimated value of the Refinery is over $20 billion, with 650,000-barrel-per-day facility already transforming Nigeria’s energy landscape.
In the view of listing-hungry NGX management, listing the refinery will deepen market liquidity, enhance wealth creation, and cement the NGX as a hub for transformational deals.
Kwairanga pointed to the impact of existing Dangote listings—Dangote Cement, Dangote Sugar, and NASCON—which have contributed significantly to investor returns and market depth. He argued that bringing the refinery to the Exchange would be a natural progression and a strong signal of transparency and commitment to inclusive growth.
Responding, Dangote affirmed his continued support for the Nigerian capital market, noting that a vibrant stock exchange was essential for Nigeria to reach its ambition of a $1 trillion economy. He also cited companies like India’s Reliance Industries as examples of how stock market engagement can scale business and create mass prosperity.
As NGX tightens its collaboration with industry titans like Dangote, capital market watchers are keenly observing what could become one of the most consequential phases in the Exchange’s history.
With dollar-denominated earnings, massive scale, and strategic national relevance, the fertiliser listing, possibly followed by the refinery, may ignite a new era of investor confidence, capital inflows, and industrial-led economic growth.
