Africa’s richest man, Aliko Dangote, has nearly completed a $2.5bn private share placement for Dangote Petroleum Refinery & Petrochemicals FZE (Dangote refinery) ahead of what is expected to be Africa’s largest initial public offering, according to a Bloomberg report on Friday.

According to people familiar with the transaction, the refinery owner sold a stake representing up to six per cent of the company in a deal that values the Lagos-based refinery at approximately $40bn, underscoring growing investor confidence in the continent’s largest single-train refinery.

The fundraising exercise reportedly drew overwhelming interest from investors, attracting about $4bn in demand, significantly exceeding the amount of shares on offer. People familiar with the transaction said the private placement was executed in phases.

The report stated, “Aliko Dangote has nearly completed a $2.5bn private stock placement for his refinery business, according to people familiar with the matter, as the company prepares for Africa’s largest initial public offering.

“Africa’s richest person sold a stake representing as much as six per cent of Dangote Petroleum Refinery & Petrochemicals FZE at a price that would value the company at about $40bn,” one of the people said, asking not to be identified while discussing confidential matters.

According to one of the sources, “The offer attracted around $4bn in demand. It initially sold about $2bn of shares before a further $500m was raised, largely backed by regional institutional investors.”

The sources, who requested anonymity because the discussions are confidential, said the fundraising marks a major milestone ahead of the company’s planned public listing. Officials of Dangote Industries declined to comment on the transaction.

The private placement follows another successful fundraising exercise in which the company recently secured $750m through a debt offering for the refinery, which currently processes about 700,000 barrels of crude oil per day at its Lekki facility on the outskirts of Lagos.

The report noted that the refinery’s public listing could raise an additional $1.5bn to $2bn, with the initial public offering expected as early as August, although the timeline remains subject to market conditions and regulatory approvals.

One of the people familiar with the plans said, “The IPO could raise a further $1.5bn to $2bn with a listing expected as early as August.” The sources also disclosed that Dangote is deliberately prioritising African participation in both the private placement and the forthcoming public offering.

According to them, “Dangote’s emphasis on African investor participation in the private placements and the retail offering of the IPO is consistent with the billionaire’s push for greater regional ownership in the financing of the continent’s industrial development.”

They added that the planned public offering would be widely marketed to Nigerians, other Africans, and international retail investors. “The expected IPO is likely to be heavily marketed to Nigerians and other African and international retail investors in an effort to attract broad demand from ordinary citizens,” one of the people said.

The fresh capital is expected to support the refinery’s ambitious expansion programme. According to the sources, proceeds from the fundraising will be used to double the refinery’s processing capacity from 700,000 barrels per day to 1.4 million barrels per day by 2028, positioning it among the world’s largest refining complexes.

The expansion comes at a time when global energy markets continue to adjust to supply disruptions triggered by geopolitical tensions, with several countries seeking alternative fuel suppliers.

The Dangote refinery has increasingly emerged as a strategic supplier of refined petroleum products across Africa following disruptions in traditional international supply chains.

Commissioned in 2023 after years of construction, the Dangote Petroleum Refinery is the largest single-train refinery in Africa and one of the biggest globally. The facility was established to end Nigeria’s decades-long dependence on imported refined petroleum products despite being Africa’s largest crude oil producer.

Since commencing commercial operations, the refinery has begun supplying petrol, diesel, aviation fuel, and other petroleum products to the domestic market while expanding exports across West Africa and beyond. The project has also significantly reduced Nigeria’s petrol import requirements and eased pressure on the country’s foreign exchange demand.

The planned IPO represents another landmark in Dangote’s strategy to broaden ownership of the refinery after financing its construction largely through a combination of shareholder funds, bank loans, and debt capital market issuances.

If completed, the listing is expected to rank among the largest capital market transactions ever undertaken in Africa, potentially raising between $1.5bn and $2bn in fresh equity while allowing retail and institutional investors to own shares in one of the continent’s most valuable industrial assets.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Despite nearly three years of sweeping economic reforms by the Federal Government, about 79 per cent of Nigerians remain poor or vulnerable to falling into poverty, highlighting the country’s deepening social and economic challenges, new World Bank documents obtained by The PUNCH have shown.

The findings are contained in the World Bank’s newly approved Country Partnership Framework for Nigeria, covering 2026 to 2032, and its accompanying Streamlined Country Diagnostic. The seven-year strategy seeks to support Nigeria’s ambition to create more and better jobs through private-sector-led growth while accelerating poverty reduction.

According to the Streamlined Country Diagnostic document, “Thirty-three per cent of its population is ultra-poor (food insecure by age-weighted caloric intake), 61 per cent is below the poverty line, and 79 per cent is near poor (below the poverty line or vulnerable to falling back into poverty).”

The documents indicate that while recent macroeconomic reforms have helped stabilise the economy and restore investor confidence, the benefits have yet to translate into meaningful improvements in living standards for most Nigerians.

The World Bank noted that Nigeria’s economic performance over the past decade had been constrained by structural rigidities, policy missteps, dependence on crude oil, and repeated external shocks, leaving millions trapped in poverty.

It stated that about 139 million Nigerians currently live below the national poverty line, with poverty concentrated largely in the northern part of the country. The report also noted that more than 86 million Nigerians remain without electricity, while three to four million young people enter the labour market every year with limited employment opportunities.

The Bank said, “Despite recent bold reforms stabilising the economy and laying the groundwork for the Renewed Hope Agenda, significant structural challenges remain.”

It added that sustaining macro-fiscal and structural reforms would be critical to reducing inflation, expanding fiscal space and ensuring that recent economic stabilisation translates into improved living standards.

The reports reviewed reforms introduced by the Bola Tinubu administration, including the removal of petrol subsidy, exchange rate liberalisation, tighter monetary policy and tax reforms.

According to the Bank, the reforms have begun to improve macroeconomic indicators. Economic growth increased from 3.5 per cent in the first half of 2024 to 3.9 per cent during the corresponding period of 2025, foreign reserves exceeded $42bn, fiscal deficits narrowed, and investor confidence strengthened.

However, it warned that high inflation continues to undermine household incomes. The report stated, “High inflation, though declining, continues to erode real incomes, particularly for the poor. Social protection efforts to support the most vulnerable have been slow and uneven in their rollout.”

The Bank added that although the reforms helped Nigeria avoid a more severe economic crisis, institutional weaknesses, weak policy coordination, and inadequate budget transparency continue to pose significant risks. It warned that sustained reform implementation, backed by deeper structural measures, would be required to improve Nigeria’s medium-term economic outlook.

Under the new Country Partnership Framework, the World Bank said job creation would serve as the primary pathway for reducing poverty. The report explained that international experience from countries such as India, Indonesia, and China shows that moving people into productive employment remains the most effective tool for reducing poverty.

To achieve this, the framework will prioritise labour-intensive sectors, particularly agriculture and micro, small and medium enterprises, while addressing structural deficiencies in electricity, digital infrastructure, education and healthcare.

The document stated that the strategy would support “an agile social transfer system to accelerate poverty exit and prevent backsliding during crises.” It added that interventions would focus on vulnerable regions, particularly northern Nigeria, through agriculture, livelihood support, MSME financing and measures to strengthen resilience against economic and climate shocks.

The Bank stressed that reforms alone would not significantly reduce poverty unless they generate jobs on a large scale. According to the report, one in four Nigerian youths is neither employed, in education, nor in training, while the majority of workers remain trapped in low-productivity, low-paying informal jobs.

It projected that about 60 million young Nigerians would enter the labour force over the next decade, making employment generation Nigeria’s most urgent development priority.

The World Bank also raised concerns over the country’s limited social protection coverage. According to the report, more than three out of every five Nigerians are poor, while over 60 million people are classified as ultra-poor and unable to meet minimum food requirements.

It noted that public spending on social protection represented just 0.14 per cent of Gross Domestic Product in 2021 and that only 8.5 per cent of poor Nigerians were covered by any form of social safety net. The report stated that as ongoing reforms expand fiscal space, directing more resources towards the ultra-poor would be critical to strengthening social resilience.

To address the challenge, the Bank said it would support Nigeria in building a unified, better-targeted and domestically financed social protection system. Drawing lessons from Brazil, Pakistan, Indonesia and India, the framework proposes differentiated support for the ultra-poor, poor and near-poor, alongside expansion of the national social registry, digital identity system and digital payment infrastructure.

The Bank said the strategy also seeks stronger domestic financing, improved coordination between federal and state governments, and closer integration of cash transfers with investments in nutrition, education, healthcare, and sanitation. It added that the interventions are expected to expand social protection coverage to about 41 million beneficiaries.

The diagnostic further observed that employment alone would not immediately eliminate poverty because many Nigerians who already have jobs remain poor. It stated that only about 14 per cent of employed Nigerians currently work in regular wage-paying jobs, while the majority are engaged in informal activities that generate insufficient income to escape poverty.

The report noted that social protection programmes remain heavily dependent on external financing and must be complemented by investments in education, healthcare and skills development to improve productivity and earnings.

The World Bank also linked poverty reduction to improvements in human capital. It warned that learning poverty remains widespread, with 84 per cent of children aged between five and 14 unable to read age-appropriate texts despite years of schooling.

The Bank identified household poverty as one of the major factors keeping children out of school and limiting future productivity. It also highlighted widespread childhood stunting as a major contributor to intergenerational poverty.

The framework proposes increased investments in nutrition, early childhood development, sanitation, household food security and social protection, targeting an eight-percentage-point reduction in stunting among children under five during the CPF period.

The documents also reviewed the implementation of the previous Country Partnership Framework covering 2021 to 2025. According to the Completion and Learning Review, poverty rose sharply during the period as Nigeria grappled with the COVID-19 pandemic, high inflation, fuel subsidies, exchange rate distortions and worsening insecurity.

The report stated that the poverty rate increased from about 40 per cent in 2019 to 61 per cent in 2025 despite extensive World Bank support. Although the review rated the implementation of the previous framework as “Moderately Satisfactory”, it acknowledged that inflation continued to worsen hardship across the country.

It stated, “A national cash transfer program supported by the World Bank was designed to protect the poor and vulnerable from these shocks, but rollout has been slower than anticipated.”

The review noted that about 8.1 million households had received at least one payment under the national cash transfer programme established to cushion the impact of inflation and economic reforms.

It added that another World Bank-supported resilience programme had reached more than 15 million Nigerians through social safety nets, livelihood support, food security interventions and financial assistance for businesses, including women-owned enterprises. The Bank concluded that preserving the current reform momentum while accelerating private investment, strengthening governance, and creating productive jobs would determine whether Nigeria succeeds in lifting millions of people out of poverty.

According to the Completion and Learning Review, safeguarding and deepening the reforms would be essential if the country is to reignite growth and enable the majority of Nigerians to escape poverty.

The PUNCH earlier reported that the World Bank approved a fresh $1.25bn loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration programme, amid public concerns over the country’s rising debt burden and repeated calls for the Federal Government to reduce external borrowing.

The approval was announced in a statement issued by the World Bank alongside the launch of a new Country Partnership Framework for Nigeria covering 2026 to 2032. The bank said the new framework would guide its support for Nigeria over the next six years, with a focus on creating jobs by unlocking private sector-led growth.

“The World Bank Group has endorsed a new Country Partnership Framework for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth,” the statement read.

The World Bank Country Director for Nigeria, Mathew Verghis, said the institution would focus on helping Nigeria convert recent macroeconomic gains into improved living standards.

“Our new Country Partnership Framework provides the strategy for how the World Bank Group will support Nigeria over the coming years, with a strong focus on helping to create more and better jobs, particularly by enabling private sector-led growth.

“The recent macroeconomic gains have been critical to help stabilise the economy. Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation,” he said.

The Bank concluded that preserving the current reform momentum while accelerating private investment, strengthening governance, and creating productive jobs would determine whether Nigeria succeeds in lifting millions of people out of poverty.

According to the Completion and Learning Review, safeguarding and deepening the reforms would be essential if the country is to reignite growth and enable the majority of Nigerians to escape poverty.

The PUNCH earlier reported that the World Bank approved a fresh $1.25bn loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration programme, amid public concerns over the country’s rising debt burden and repeated calls for the Federal Government to reduce external borrowing.

The approval was announced in a statement issued by the World Bank alongside the launch of a new Country Partnership Framework for Nigeria covering 2026 to 2032. The bank said the new framework would guide its support for Nigeria over the next six years, with a focus on creating jobs by unlocking private sector-led growth.

“The World Bank Group has endorsed a new Country Partnership Framework for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth,” the statement read.

The World Bank Country Director for Nigeria, Mathew Verghis, said the institution would focus on helping Nigeria convert recent macroeconomic gains into improved living standards.

“Our new Country Partnership Framework provides the strategy for how the World Bank Group will support Nigeria over the coming years, with a strong focus on helping to create more and better jobs, particularly by enabling private sector-led growth.

“The recent macroeconomic gains have been critical to help stabilise the economy. Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation,” he said.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

A viral protest by airport cab drivers has shifted attention from disputed vehicle requirements to deeper concerns over Federal Airports Authority of Nigeria’s digital taxi reform, exposing tensions between transport modernisation, stakeholder inclusion and operational realities, writes OLASUNKANMI AKINLOTAN

A viral video of distressed airport cab drivers appealing to President Bola Tinubu over what they believed was a directive requiring them to acquire 2020 model vehicles has sparked broader debate over FAAN’s latest push to modernise airport ground transportation.

While the appeal centred on the cost of acquiring newer vehicles in an economy weighed down by inflation and dwindling purchasing power, findings by The PUNCH showed that the controversy extends beyond vehicle specifications. At the heart of the disagreement is the implementation of the Airport Car Hire Rank Management System, a digital platform introduced by FAAN to regulate airport taxi operations, improve security and streamline passenger movement.

For FAAN, ACHRAMS represents a major step towards modernising airport ground transportation and closing longstanding security and operational gaps. For the drivers, however, the unanswered questions are less about digitisation and more about participation and practicality, among other concerns.

For many of the drivers, however, the issue is not resistance to technology but the feeling that they are being excluded from a reform that will directly affect their daily operations and livelihoods.

In the video, one of the drivers, speaking in Yoruba, appealed to Nigerians to intervene, saying, “This is what we are facing. Nigerians should help us intervene. They said we should go and buy a vehicle from 2020 above. Vehicles that cost between N18 and N30m, with the way Nigeria is now.

“There are no jobs in the country, with what we are going through. Please pity us Nigerians. Let this go viral. Nigerians pity us, help us intervene.”

The video gained traction on social media, drawing mixed reactions. While many Nigerians sympathised with the operators, arguing that surviving businesses should not be burdened with additional costs during economic hardship, others insisted that airport transport services should reflect the standards expected of international gateways.

Behind the public debate lies ACHRAMS, a technology-driven initiative FAAN says is designed to improve passenger safety, eliminate touting, regulate airport taxi services and ensure transparent fare administration.

The authority insists the initiative has been widely misunderstood.

Responding to the controversy, FAAN’s Director of Commercial and Business Development, Ms Adebola Agunbiade, dismissed claims that the protest was triggered by any directive compelling drivers to procure 2020 model vehicles.

She said, “Regarding the video circulating online, the claim that the main cause of the drivers’ actions is not accurate. The footage shows planned resistance by car hire operators who refused to register on the ACHRAMS. Those drivers were working to prevent the soft and pilot launches of the system at the Murtala Muhammed International Airport. This incident is not related to any policy regarding vehicle model year.”

Agunbiade explained that the authority’s minimum vehicle requirement remains 2012 models and above, not 2020 as widely alleged.

She further said, “It is incorrect to say that FAAN asked drivers to change their vehicles to a minimum of the 2020 model because of the introduction of ACHRAMS. In fact, one of the conditions laid down by the Authority for registration on the app is that drivers must operate vehicles manufactured in 2012 or above.”

She also stated that the requirement was introduced as far back as 2024 and that FAAN had repeatedly extended compliance deadlines from January to June and now to 1 October 2026, to accommodate operators facing financial constraints.

The airport managers also rejected allegations that the new system was intended to reduce the number of airport cab operators.

Agunbiade stated, “It is important to note that FAAN is not planning to clear only 60 per cent of existing drivers to pave the way for ACHRAMS. The intention is to clear all drivers, provided they comply with the laid-down standards.”

She disclosed that nearly all existing airport taxi operators at the Murtala Muhammed International Airport had already been admitted into the pilot phase of the platform, except two companies whose union allegedly advised members against participating while pursuing separate digital solutions.

FAAN further revealed that discussions were ongoing with ride-hailing companies such as Bolt and Uber to integrate their operations into ACHRAMS, explaining that any temporary restriction on airport pickups was purely regulatory pending the conclusion of agreements.

FAAN says the application goes beyond regulating drivers, describing it as a platform that will reshape airport transport through digital tracking, stricter vehicle and driver screening, transparent fare systems, designated pick-up points and stronger passenger security.

The platform, which is being implemented under a ten-year concession managed by two companies, the agency said, will reduce congestion around airport terminals while introducing electronic booking and payment options for passengers.

FAAN maintains that consultations did not begin overnight, insisting stakeholder engagements commenced in 2024 before the project entered its pilot phase.

Despite those assurances, many airport cab operators maintain that the consultation process has not been as inclusive as it ought to have been.

The National President of the National Association of Airport Cab Drivers, Mr Adepegba Samuel, said the association’s demand is simple and not the suspension of the initiative, but genuine dialogue with them.

“You see, when you want to introduce something that you want people to align with, there should be serious briefing and enlightenment about the issue. The people introducing something are in the office, but we are the ones operating on the road. They should speak with us so that we can also tell them our views,” he said.

Samuel argued that airport drivers interact with passengers more than any other stakeholders after travellers leave the terminal buildings, making their practical experience invaluable in shaping the success of any operational reform.

He said, “We try to take the message to the public, but we need to sit together. We are the ones who will mostly speak to the public about this, but when we are not properly briefed or when you refuse to sit with us, how do we go forward from there?

“There are things they don’t know in the office that are happening, that we know because we deal with the public. We deal with the masses. We are at the finishing end of the job.

“They will bring the passenger from the plane down. We will take them to their respective areas. So we are dealing with them. If they want to ask questions about our operation, the public will not ask the government first; they will ask us. That is why we are saying let us have a round-table discussion.”

His concerns also extend to the practical application of the technology.

According to him, the operational realities of Nigeria’s airports require a more flexible system than what has currently been proposed.

He reasoned, “The app they are talking about varies. The one that we work with in MM1 will not work at the international terminal. This one cannot even work for the public. The app should be made for the airport alone and be generalised.

“That is why we are seeking an audience with them, and they have refused to grant it. We are not fighting them. They are our bosses and principals, but they should please listen to us too.”

Samuel illustrated his concerns with a personal example, explaining that many airport drivers have built trusted relationships with customers over decades.

He explained, “For instance, I have a customer, an old customer of more than 25 years. Some of them have children in Babcock and other boarding schools. They don’t even come to pick their children themselves because they have confidence in me. They trust me.

“Imagine they are trying to reach me through the app from the international terminal while I am at the local airport; that will not be possible.

“They are our principals, but what we are saying is that let us come to a round table and debate the issue. That is all we seek.”

Attempts to obtain FAAN’s response on why the authority had yet to meet with the union were unsuccessful, as calls and text messages sent to its spokesperson, Henry Agbebire, went unanswered as of the time of filing this report.

Meanwhile, FAAN sources, who requested anonymity because they were not authorised to speak publicly, told our correspondent that the authority had no basis to meet directly with the drivers since it has no contractual relationship with them. They explained that FAAN had instead engaged with the concessionaires responsible for overseeing the airport cab operators.

One of the sources said, “FAAN could not have met with them because they work at the airport under different companies, yes, concessionaires, and these people are the ones FAAN met on several occasions. We couldn’t have met the drivers or unions.”

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN