The Dangote Group made significant gains in market value after the start of its refinery in Lagos, Nigeria’s commercial capital.
The three subsidiaries of Dangote Group listed on the Nigerian Exchange Limited (NGX) saw their combined market capitalisation rise by N513.69 billion on Monday. That was the first trading day after the announcement of the start of production at the conglomerate’s oil refinery.
On Friday evening, a video of the 650,000-barrels-per-day refinery began to circulate on social media, causing excitement in many circles. On Saturday, Dangote Group announced that the plant had started producing diesel and aviation fuel.
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”.
Another firm, Dangote Cement Plc, jumped ahead of MTN Nigeria Communications Plc with a market cap of N6.39 trillion, up from N5.96 trillion on Friday. The cement maker had on Friday overtaken the telecommunications giant as the second most valuable firm on the NGX.
Dangote Sugar Refinery Plc also saw its valuation rise to N898.87 billion from N828.42 billion on Friday, while that of NASCON Allied Industries Plc increased to N172.21 billion from N158.97 billion.
In a statement on Saturday, Dangote Group said products from the refinery would be in the market within this month once it received regulatory approvals.
It said the refinery had so far received six million barrels of crude oil at its two single-point moorings located 25 kilometers 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 statement said the refinery can load 2,900 trucks a day at its truck-loading gantries. Earlier this month, after just a week, the Nigerian industrialist reclaimed his position as the richest person in Africa, overtaking South African Businessman Johann Rupert who pipped him to the position.
According to Forbes Real-Time Billionaires, as of January 8, Dangote’s net worth improved by $10 million to $10.1 billion while Rupert’s net worth as of January 8 was $10 billion, down from $10.7 billion as of January 30, 2023
