Standard Bank to play key role in Nigeria’s Dangote refinery IPO

Standard Bank Group has indicated that it intends to play a leading role in the planned initial public offering (IPO) of the Dangote Petroleum Refinery, while also signalling its willingness to support future expansion projects undertaken by the Nigerian industrial group across Africa.

The commitment was made during a visit by Standard Bank Group chief executive Sim Tshabalala and senior executives to the Dangote Petroleum Refinery and Dangote Fertiliser complex in Lagos.

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Tshabalala described the refinery as a transformational project for both Nigeria and the wider African continent.

“We are here because the Dangote Group is a large and important global player and a significant force on the African continent,” he said.

“Standard Bank is the largest financial institution in Africa and we have partnered with Dangote on a variety of initiatives. We are here to lend support … [and see] how we can continue supporting the group’s growth ambitions.”

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Referring to the refinery’s planned listing, Tshabalala said: “As Dangote lists, there is an IPO coming up and we are a leading player in that process.”

He added: “As the group continues to expand in Nigeria and across Africa, there will be opportunities for financial advisory services and balance sheet support, and we stand ready to provide both.”

Tshabalala the refinery was already contributing to Nigeria’s economy.

“This is a wonder to behold. It is massive, productive and transformative. It is already making a significant contribution to Nigeria’s economy through its impact on foreign reserves, the balance of payments and the lives of ordinary Nigerians,” he said.

Tshabalala’s visit coincided with an operational milestone for the refinery, which has exceeded its original design capacity.

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According to David Bird, managing director and CEO of the Dangote Petroleum Refinery, the facility recently completed performance test runs at 700 000 barrels a day, above its nameplate capacity of 650 000 barrels a day.

“We have always believed there was engineering flexibility built into the design,” he said.

“Achieving sustained production of 700 000 barrels per day is a testament to the technical capability of our people and the strength of the systems we have built.”