By TheDailyNewsHub
Nigerian economist and financial analyst Bismarck Rewane has urged Nigerians to consider investing in the forthcoming Dangote Petroleum Refinery and Petrochemicals IPO rather than selling their Permanent Voter Cards (PVCs) for short-term financial gain.
Rewane made the remarks while discussing the potential impact of the refinery’s planned public offering, arguing that widespread participation could help strengthen Nigeria’s investment culture and encourage citizens to build long-term wealth.
“You are better off with your N5,000 share than selling your PVC for N10,000 or N15,000 and consuming it,” Rewane said, according to a report by Channels Television.
His comment comes as preparations intensify for the Dangote Refinery IPO, which is expected to offer Nigerians and other investors an opportunity to acquire an ownership stake in the massive refinery.
Chapel Hill Denham, one of the issuing houses for the offer, confirmed that the IPO comprises up to 4.1 billion ordinary shares priced at N525 each. The company said proceeds are expected to support Dangote Refinery’s expansion programme, including plans to increase refining capacity to 1.4 million barrels per day.
At N525 per share, the minimum 10-share subscription would amount to N5,250, although the final terms and applicable requirements of the offer should be checked in the official offer documents.
Rewane said the significance of the IPO extends beyond Dangote Refinery itself, arguing that bringing millions of Nigerians into the capital market could help create a stronger culture of ownership and investment.
He pointed to the possibility of attracting as many as 10 million shareholders, describing such participation as a major milestone for Nigeria’s capital market.
“If you can get 10 million shareholders to participate in the IPO, the Dangote Refinery will have the largest number of shareholders in the world,” he said.
The economist also drew a distinction between investing and gambling, noting that many Nigerians spend significant amounts of money on betting and other activities based on chance.
“The difference between a gambling act, a lottery act, and an investment is that in one case, you are investing based on known parameters; in the other one, you are actually just gambling and taking a chance,” Rewane said.
He described broad public ownership of the refinery as a form of economic democratisation, saying the IPO could allow ordinary Nigerians to participate in the growth of one of the country’s largest industrial assets.
Rewane further argued that the refinery’s potential to serve markets across West and Central Africa could create significant economic opportunities and generate returns for investors, while also contributing tax revenues to government.
The IPO is being positioned as a major development for Nigeria’s capital market. Chapel Hill Denham said the offering represents an opportunity for Nigerians and investors across Africa to participate in the ownership and future growth of what it described as the world’s largest single-train refinery.
However, investing in the IPO would not guarantee a profit. Like other equity investments, the value of shares can rise or fall after listing, and investors should consider the risks and review the official offer documents before committing their money.
Rewane’s comparison with selling a PVC was therefore principally an argument for long-term investment over immediate consumption, rather than a guarantee that Dangote Refinery shares will generate a particular return.
The Dangote Refinery IPO is expected to attract significant interest as the company moves towards greater public ownership and prepares for its next phase of expansion.