NGX CEO: Dangote refinery IPO could trigger fresh wave of listings

DANGOTE Petroleum Refinery’s initial public offering could encourage more Nigerian companies to list on the Nigerian Exchange (NGX), as the capital market expands its capacity to mobilise funds and connect businesses with a wider pool of investors, Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, has said.

Popoola said the refinery’s IPO demonstrated that Nigeria’s capital market could accommodate large businesses while creating opportunities for broader public ownership.

He said the challenge now was to persuade more successful privately owned companies to use the stock market to raise long-term funding, expand their businesses and give investors access to their growth.

Speaking in an interview with Nairametrics, Popoola said the significance of the Dangote transaction extended beyond the offering itself, as it could encourage other businesses to consider the public market as part of their long-term growth plans.

“If that happens, the significance of the Dangote IPO will extend beyond the transaction itself. It could help trigger a new wave of listings and strengthen the role of Nigeria’s capital market in financing the next generation of Nigerian businesses,” he said.

His comments come as the NGX seeks to build on increased domestic investor participation and digital investment platforms to expand capital formation across the economy.

READ ALSO: Dangote refinery IPO offers huge upside, but investors face risks

Banks raised N4.65trn through recapitalisation

Popoola identified the banking sector’s recapitalisation exercise as evidence of the Nigerian market’s capacity to mobilise substantial capital when the necessary regulatory framework, market infrastructure and investor participation are in place.

He said 33 banks raised N4.65 trillion in fresh capital over two years, demonstrating that large fundraising exercises could reach a wider pool of investors through improved distribution channels.

The NGX Invest platform facilitated approximately N2.8 trillion of the capital raised through the recapitalisation exercise, according to Popoola.

Launched in 2024 following regulatory approval by the Securities and Exchange Commission, the platform enables participating market intermediaries to distribute public offers digitally.

Popoola said NGX Invest had expanded to more than 180 distribution channels, including stockbrokers, banks, fintech companies and other financial institutions.

He said the infrastructure developed during the banking exercise could support future public offers and help businesses across different sectors secure long-term financing.

According to him, raising capital is not only about the availability of funds but also about how efficiently investment opportunities can reach potential investors.

Technology, he added, could reduce barriers to participation, expand the investor base and make it easier for companies to access funds through the capital market.

READ ALSO: Dangote Group targets $100bn revenue with $45bn investment plan

Domestic investors account for 95% of NGX transactions

Popoola also highlighted the growing contribution of Nigerian investors to trading activity on the exchange.

Domestic investors accounted for about 95 percent of total NGX transactions in August 2026, while retail investors contributed N552.88 billion, according to figures cited in the interview.

He attributed the stronger participation to improving investor awareness, better access to market information, wider digital distribution and an expanding range of investment opportunities.

A deeper domestic investor base, he said, could make the market more resilient by reducing dependence on a single source of capital, particularly during periods of volatility in international financial markets.

However, Popoola said Nigeria needed to channel more of its domestic savings into productive investments that could finance businesses and support economic growth.

He added that domestic and foreign investors should complement one another, with local capital providing a foundation for the market and international participation bringing additional funding and global connections.

NGX seeks reforms to attract foreign investors

Despite improvements in market participation, Popoola said Nigeria needed further reforms to strengthen its appeal to international investors.

He identified market liquidity, corporate governance, disclosure standards, foreign exchange liquidity and the ability to move capital into and out of the country as important areas requiring sustained attention.

The ability to exit investments and repatriate capital remains particularly important to foreign investors assessing the Nigerian market, he said.

Popoola noted that the transition to T+1 settlement, under which eligible securities transactions are settled one business day after trading, had brought Nigeria closer to international market practices.

Renewed attention from global index providers, including FTSE Russell and S&P Dow Jones Indices, could also improve the visibility of Nigerian securities among international investors.

He said these developments needed to be supported by consistent policies and improvements in the broader investment environment to attract deeper and more sustainable foreign participation.

READ ALSO: Dangote’s wealth jumps $19.9bn to $51.3bn after refinery begins IPO

Capital market raised N6.49trn in 2025

Popoola said Nigeria’s capital market raised approximately N6.49 trillion across government and corporate issuers in 2025, reflecting its capacity to finance different categories of borrowers and businesses.

He argued that more companies should view listing as a long-term business strategy rather than a one-off fundraising exercise.

According to him, the public market can provide businesses with access to diverse funding sources, market-based valuation, greater visibility and opportunities to broaden their shareholder base.

A listing can also give existing shareholders a route to sell part of their holdings and allow more Nigerians to participate in companies creating value in the economy.

Popoola said demonstrating these benefits to privately owned businesses would be important for expanding the pipeline of companies seeking admission to the exchange.

NGX pushes cross-border African investment

Beyond Nigeria, Popoola said African capital markets needed stronger connections to enable investors to access opportunities across national borders more efficiently.

He noted that savings held by pension funds, asset managers, financial institutions and individuals across the continent remained fragmented by different currencies, jurisdictions and market structures.

The African Exchanges Linkage Project, led by the African Securities Exchanges Association in partnership with the African Development Bank, has established a foundation for improving access to investment opportunities across participating markets.

Popoola said further progress would require greater compatibility between exchanges, brokers and securities depositories, alongside closer regulatory cooperation and more efficient arrangements for settlement, payments and capital movement.

He said the objective was not necessarily to create a single African stock exchange but to enable existing markets to work together more effectively.

Making it easier for investors in Lagos to access securities in markets such as Nairobi, Johannesburg and Gaborone could help mobilise more of Africa’s existing savings to finance businesses across the continent, he said.

Popoola maintained that stronger domestic participation, improved digital infrastructure and a broader pipeline of quality companies could deepen Nigeria’s capital market and increase its role in financing business expansion and economic growth.