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Dangote Group’s Stocks Surge by N514 Billion After Refinery Commences Production

Dangote Group's Stocks Surge by N514 Billion After Refinery Commences Production

In the wake of the Dangote refinery kickstarting its production, investors flocked to the Nigerian Exchange, driving a remarkable appreciation of N514 billion in Dangote Group’s stocks.

Three subsidiaries of the Dangote Group, listed on the Nigerian Exchange Limited (NGX), collectively witnessed a surge in their market capitalization by N513.69 billion on Monday, fueled by the positive news of the refinery’s production commencement.

The excitement in the market was ignited by a video circulating on social media last Friday, showcasing the operational debut of the 650,000-barrels-per-day refinery. The subsequent official announcement on Saturday confirming the initiation of production further fueled investor enthusiasm.

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 by Nigerians on when it will be in the market, adding that it will be in Nigeria’s oil market before the end of January once it receives regulatory approval.

It said the refinery had so far received six million barrels of crude oil at its two single point moorings located 25 kilometres 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.

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