Nigeria’s Securities and Exchange Commission on Tuesday ordered an immediate halt to the marketing of a purported initial public offering by Dangote Petroleum Refinery & Petrochemicals FZE, saying no application has been filed or approved.
The regulator directed stockbrokers and digital platform promoters to take down all unauthorized flyers and online marketing materials within 24 hours, labeling the aggressive pre-marketing campaign an unwholesome and manipulative exercise.
Capital market operators were instructed to immediately stop accepting investor deposits or expressions of interest. They must also reverse and refund all funds collected from clients within 24 hours of the notice.
The commission warned that unapproved solicitations to “pre-fund” investments or secure “guaranteed allocations” create market information asymmetry. Such acts constitute serious violations of the Investments and Securities Act 2025.
Non-compliant operators risk immediate regulatory sanctions under the act. The apex regulator urged the public to ignore high-pressure “pre-IPO” placement tactics until a formal, cleared prospectus is officially released.
The regulatory crackdown comes amid massive public anticipation for a legitimate public listing. The Dangote Group plans to sell a 10 percent stake in its 650,000-barrel-per-day mega refinery.
The eventual multi-billion-dollar transaction is widely expected to become the largest initial public offering in African capital market history, with a projected corporate valuation hovering between $40 billion and $50 billion.
The National Pension Commission recently granted a unique waiver allowing local pension fund administrators to invest retirement savings into the anticipated strategic asset, amplifying retail and institutional investor interest across the continent.
