After refinery take-off, Dangote’s stocks appreciate by N514bn

Following the announcement that the Dangote refinery has commenced production, investors have rushed to the Nigerian Exchange to purchase stocks by Dangote Group which saw an appreciation of N514 billion.

Subsequently, three subsidiaries of Dangote Group listed on the Nigerian Exchange Limited (NGX) saw their combined market capitalisation rise by N513.69 billion on Monday, following the production announcement by the refinery.

Recall that on Friday, a video surfaced on social media showing the 650,000-barrels-per-day refinery coming to life with a subsequent announcement on Saturday that the refinery had commenced production.

Speaking on the development, Aliko Dangote, President/Chief Executive of Dangote Group, described it as “a game changer” and “an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.” 

The statement answered the curiosity of Nigerians on when it will be in the market, he said, adding that it will be in Nigeria’s oil market before the end of January once it receives regulatory approval.

It said the refinery has so far received six million barrels of crude oil at its two single-point moorings located 25km from the shore. The first crude delivery was done on December 12, 2023, and the sixth cargo was delivered on January 8, 2024, it added.

“The refinery can load 2,900 trucks a day at its truck-loading gantries, and the products will conform to Euro V specifications. The refinery design complies with the World Bank, US EPA, European emission norms, and the country’s oil regulator’s emission/effluent norms, employing state-of-the-art technology,” the statement further explained.