Is the Dangote Refinery IPO Halal?

Yes. The Dangote Refinery IPO has been assessed as permissible under the stated AAOIFI screening criteria, based on the official Shariah opinion issued by Buraq Capital. Qistal explains the assessment, ratios, offer terms and prospectus evidence.

Official Shariah assessment

Buraq Capital assessed the offer as permissible by reference to AAOIFI Shariah Standard No. 21. The official offer-date ratios reported were 13.9950% for interest-bearing debt, 2.1542% for interest-earning deposits and investments, and 0.3564% for impure income.

Dangote Refinery IPO offer terms

The offer price is NGN525 per share. The minimum application is 10 shares, equivalent to NGN5,250. The fixed-price offer comprises 4.1 billion ordinary shares, opens on 14 September 2026 and closes on 13 October 2026.

Offer valuation and proceeds

The prospectus reports a pre-offer valuation of NGN63.07 trillion and an indicative post-offer valuation of NGN65.22 trillion. Gross proceeds are NGN2.1525 trillion. After estimated offer costs of NGN41.493 billion, approximately NGN2.111 trillion is intended to help fund the refinery expansion programme.

Audited H1 2026 financial figures

For the six months ended 30 June 2026, the audited historical financial information reports revenue of NGN19.135 trillion, profit after tax of NGN2.504 trillion, total assets of NGN29.075 trillion, shareholders' equity of NGN14.678 trillion, cash and cash equivalents of NGN5.892 trillion, and loans and borrowings of NGN7.822 trillion.

Business and expansion

The refinery's stated capacity is approximately 700,000 barrels per day. The proposed expansion is intended to add approximately another 700,000 barrels per day and is targeted for completion by 2030.

Retail investor details

The offer is not underwritten. Subject to approvals and detailed conditions, eligible retail investors who maintain the required continuous holding may qualify for up to two incentive shares.

Important clarification

Shariah permissibility does not mean the investment is risk-free or guarantee returns. The prospectus identifies operating-history, crude-supply, refining-margin, debt-service, foreign-exchange, expansion-execution and market-liquidity risks.