LAGOS, Nigeria – Dangote Petroleum Refinery has reported a net profit of US$4.73 billion for the first nine months of 2026, reversing a US$117.2 million loss during the same period last year. The turnaround comes as the Nigerian industrial giant seeks to raise approximately US$1.6 billion through what could become Africa’s largest initial public offering (IPO).
The refinery’s unaudited financial results, released on 13 October, show revenue rising 144% to US$22.48 billion from US$9.19 billion a year earlier. Higher crude processing volumes, stronger refining margins and improved operations contributed to the growth.
Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to US$5.52 billion from US$627.6 million. Operating cash flow also rose sharply to US$3.68 billion, compared with US$364.7 million during the corresponding period in 2025.
The stronger performance has significantly improved the company’s financial position. Dangote Refinery ended September with US$6.69 billion in cash and moved from net debt of US$1.73 billion a year earlier to a net cash position of US$650.8 million.
Managing Director and Chief Executive Officer David Bird attributed the turnaround to the refinery’s progress beyond its initial commissioning phase.
“Our third-quarter performance demonstrates the successful transition from commissioning and ramp-up activities to sustainable commercial operations,” Bird said.
The approximately US$20 billion refinery, located near Lagos, began processing crude oil in 2024. Its current capacity stands at 700,000 barrels per day, making it one of Africa’s largest refining facilities.
Since entering production, the refinery has helped reduce Nigeria’s dependence on imported petroleum products while expanding supplies to domestic and regional markets. It has also entered international markets, including supplying jet fuel to Western Europe.
Global market conditions have contributed to the improved financial performance. Supply disruptions linked to the war involving Iran have increased demand for refined petroleum products and strengthened refining margins.
However, the company’s results also reflect higher processing volumes and improved operational reliability as the facility moves beyond the challenges associated with starting large-scale production.
The financial turnaround comes as Dangote Refinery advances a major share offering intended to broaden ownership of the business and support its expansion plans.
The IPO opened on 14 September and was initially scheduled to close on 13 October. Nigeria’s Securities and Exchange Commission has since approved a two-week extension to 27 October, following strong investor interest.
The offering seeks to attract retail investors from Nigeria and other African markets. However, participation outside Nigeria remains subject to regulatory requirements and the availability of eligible investment platforms.
The company aims to double its refining capacity to approximately 1.4 million barrels per day by 2029. The planned expansion could strengthen Nigeria’s position as a regional supplier of refined petroleum products and increase the refinery’s reach across African markets.
Dangote’s performance also carries wider significance for African industrial development. Many economies across the continent continue to export crude oil and other raw materials while importing more expensive processed products.
Large-scale refining offers an opportunity to retain more industrial activity and economic value within Africa. It can also support regional supply chains and reduce dependence on imported fuel, although these benefits depend on reliable production, competitive pricing and efficient distribution.
The refinery’s transition into profitability demonstrates the commercial potential of major African industrial investments. Its longer-term performance will nevertheless remain sensitive to global oil prices, refining margins, operating costs and demand for petroleum products.
As the IPO progresses, attention will turn to whether the company can sustain its earnings, deliver its planned capacity expansion and attract wider African investment.
Dangote Refinery’s latest results mark a significant shift from the losses recorded during its earlier operations. Its next challenge is to convert that financial turnaround into sustained growth while strengthening Nigeria’s position in Africa’s energy industry.
