Rewane: Dangote Refinery IPO Offers Nigerians ‘Surer Bet’ Than Gambling, Football Betting

• Bismarck Rewane says Dangote Refinery’s IPO could encourage Nigerians to invest rather than spend heavily on gambling and betting
• He said attracting 10 million shareholders would broaden ownership of the refinery and deepen Nigeria’s investment culture
• Rewane described the IPO as a strong investment opportunity that could generate returns for investors and increase government tax revenue

Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.

Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company (FDC), says the initial public offering (IPO) of Dangote Refinery could help strengthen Nigeria’s investment culture by encouraging people to channel their money into productive assets rather than gambling.

Speaking on Channels Television, Rewane said the refinery’s plan to attract up to 10 million investors could give it one of the largest shareholder bases globally.

He, however, clarified that having a large number of shareholders would not necessarily mean the company would have the highest investment value.

According to the economist, the potential participation of millions of Nigerians represents an important opportunity to introduce more people to long-term investment and ownership of productive assets.

Rewane Compares Investment With Betting

Rewane noted that a significant portion of income among low-income Nigerians is sometimes spent on betting and other forms of gambling.

He argued that investing in Dangote Refinery could provide a more structured alternative because investors would be putting their money into an identifiable business with the potential to generate returns.

He explained that investments are based on identifiable factors and business performance, unlike gambling, where outcomes largely depend on chance.

“But it is significant as we are developing and nurturing an investment culture amongst Nigerians who, before now, spent almost 20 to 30 percent of their income at the bottom of the pyramid on gambling and on betting for football.”

“It offers a surer bet of getting revenues and dividends than the 0.0001 probability that you will get a football match or a wrestling battle,” he said.

Rewane also suggested that the IPO could contribute to the wider democratisation of Nigeria’s capital market by allowing ordinary Nigerians to become shareholders in one of the country’s biggest industrial projects.

IPO Could Broaden Share Ownership

The FDC chief executive compared the proposed 10 million-investor target with voter participation in Nigeria’s 2023 general election, arguing that widespread ownership of shares could give more citizens a stake in the country’s economic development.

He said Nigerians could benefit more from holding shares than from selling their permanent voter cards (PVCs) for immediate financial gain, stressing the potential long-term value of investment.

Rewane described the Dangote Refinery IPO as a compelling investment opportunity, saying it could provide returns to shareholders while also supporting government revenue through increased tax contributions.

He added that the public offering would broaden the refinery’s ownership base and enable more Nigerians to participate in what he described as Africa’s largest IPO.