ABUJA — Nigeria’s Securities and Exchange Commission (SEC) has ordered an immediate halt to all marketing activities promoting a purported initial public offering (IPO) for the multi-billion dollar Dangote petroleum refinery.
The financial regulator warned on Tuesday that it has neither received nor approved any formal application for a public share sale from the company.
The emergency directive follows the widespread circulation of digital banners, flyers, and targeted emails across social media and investment channels urging the public to secure early stakes in the facility.
Describing the pre-marketing campaigns as an “unwholesome and manipulative exercise,” the SEC expressed deep concern over the involvement of registered stockbrokers and digital investment platforms.
“The Securities and Exchange Commission has banned the marketing and promotion of a purported initial public offering by Dangote Petroleum Refinery & Petrochemicals FZE,” the regulator said in a public statement.
‘Market manipulation’
The commission warned that capital market operators actively soliciting advance subscriptions, asking investors to pre-fund accounts, or promising “guaranteed allocations” were in serious violation of the Investments and Securities Act.
The regulator added that these high-pressure tactics risk misleading the public, distorting market expectations, and undermining the overall integrity of Nigeria’s capital markets.
All registered market operators have been ordered to:
- Cease with immediate effect the distribution of any promotional material or commentary regarding the acquisition of shares in the refinery.
- Remove all unauthorised marketing materials from websites, social media accounts, and messaging groups within 24 hours.
- Stop accepting deposits, commitments, or expressions of interest from prospective investors.
- Reverse and refund all funds already collected from clients within 24 hours.
The watchdog warned that any operator failing to comply with the 24-hour ultimatum faces severe sanctions under market rules.
Landmark float delayed
The Dangote Group, owned by Africa’s richest man, Aliko Dangote, has previously announced plans to list a 10 per cent stake in its $20bn (£15.8bn) mega-refinery. The 650,000-barrel-per-day facility outside Lagos is viewed as a critical piece of infrastructure aimed at ending Nigeria’s historic reliance on imported fuel.
While a landmark pan-African IPO is widely anticipated, the SEC stressed that no such sale can legally take place until an official prospectus is reviewed and approved by state authorities.
The regulator has advised the public to ignore the ongoing promotional campaigns and refrain from transferring money to any operators for “pre-IPO” placements.
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