Emir of Kano, Muhammadu Sanusi II, has urged Nigerians interested in the Dangote Petroleum Refinery and Petrochemicals IPO to invest only what they can afford to lose or set aside.
Sanusi gave the advice at the refinery’s IPO roadshow in Kano, attended by investors, stockbrokers, bankers, traditional rulers, industrialists and prospective shareholders.
The former Central Bank of Nigeria governor warned investors against using essential funds or selling their homes to buy shares.
“Do not take your children’s school fees and put your shares. Do not sell your house that you live in and put in shares,” Sanusi said.
He advised investors to consider starting with amounts they could comfortably set aside.
“What you can afford — 10,000, 20,000, 30,000 — what you can afford to set aside for some time, set it aside,” he said.
Sanusi encouraged Kano residents to take part in the offer and become shareholders in the refinery, which he described as a company with strong economic fundamentals.
“I would like my people to be owners of this. I do not want us to be left behind in the capital markets,” he said.
He also urged investors to adopt a long-term approach rather than buying shares for quick profits.
“I’m not talking about someone who will buy 5,000 shares and wants to sell tomorrow,” he said.
“Forget about it for some time. You’ll be surprised in five years what the ₦10,000 you invest today will be.”
Sanusi also praised Dangote Group President Aliko Dangote for the impact of the refinery on Nigeria’s petroleum industry.
He said the refinery could help reduce Nigeria’s dependence on imported refined petroleum products and potentially position the country as an exporter.
“We have moved from a country using its foreign exchange to import petroleum products, to one that potentially will be earning foreign exchange from an exporter, not just of crude but also of refined products,” Sanusi said.
The IPO opened this month with 4.1 billion new ordinary shares offered at ₦525 per share.
The minimum subscription is 10 shares, valued at ₦5,250, while the offer is expected to remain open until next month, subject to the terms of the prospectus.
The offer targets retail, institutional and eligible African investors, with the aim of broadening ownership and participation in Nigeria’s capital market.
Speaking at the IPO gong-sounding ceremony on the Nigerian Exchange trading floor, Aliko Dangote assured investors that the refinery would become the most viable company in Africa by the end of the year.
