DANGOTE PETROLEUM REFINERY IPO – FACT BEHIND THE OFFER PRESENTATION AT THE NGX

By 2030, the Dangote group will be refining 2.1 million barrels a day. And if we are 2.1 million barrels a day we'll be almost like one of the largest refiners of crude after most likely after Saudi Aramco.

For us it was I wouldn't say it was easy or difficult but it's just what you needed to do to get things going and it took us quite a while to execute the project and I mean we raised the financing 2013 thereabouts and the project took a while to be fully executed. So you can imagine what we were going through in terms of repaying the loans before we even completed the project. And so that put a lot of pressure on the group's cash flows, but we're able to surmount the problems.

Your Excellencies, distinguished guests. Ladies and gentlemen, the Dangote Petroleum Refinery we are here to commission this morning is in fulfillment of our long-held dream and the product of Dangote Group's corporate vision driven by our mission to produce what you consume and promote self-sufficiency in the basic needs of our people while competing globally in areas of our comparative and competitive advantage.

Without this refinery, the government wouldn't have been able to actually, you know, deregulate because they had nothing to deregulate. That's number one. Number two, the exchange rate would have been at still 1,800, 1,900. The reserves that we're also talking about wouldn't have been where it is now at 50. Okay? Because all this thing is actually being caused by this refinery. If not because of the refinery, we will not see all this progress. So we must actually thank Mr. President for his leadership because without a good leader because the leader had to take a very decisive action and that is what he did taking decisive action and also the risk.

So you can see the impact of this petroleum refinery on the country in terms of stabilizing the currency value and also even improving the foreign exchange value. So when we import something now instead of all the prices keep going up it has to be coming down and the currency becomes stronger. We are creating employment. We are adding to the GDP. All our businesses we like to be FX generative and bringing significant foreign capital into the African continent and in Nigeria.

So thank you very much. You know I'm still going to speak to you later. But what I want to tell you is that we are going to go and fully fully fully share all our prosperity with the people. That's why we call this people's IPO. We know the journey actually just started is not only about the refinery Mr. Chairman CEO and other management of the stock exchange. Stock exchange is something that I have actually been fully involved with the transformation. When I invited Ike to come and join and Ike was really pushing that we must democratize the market I was a little bit worried but you know Ike doesn't listen. So he really but I can see the benefits today. We as a group will list every single company that we operate. I don't I know about the others, but I know our own market cap, even at 10 times PE ratio by 2030 should not be less than $350 billion. Be from this exchange. It was then we can go to any other place. So Nigeria and Africa is our base. We want to make the people to make sure that we join forces to build our continent and it will be thank you very very much.

We have discussed with Sam, he's going to bring his own investments here and so many other people that we have discussed here today. We have the capacity, we have the resources to do much more than what we are doing in this market. I want to also acknowledge the Securities and Exchange Commission under the leadership of our DG Dr. Emomotimi Agama for his continued work in strengthening the regulatory environment and supporting the development of our capital market. I also recognize the issuing houses as well as the professional advisers, market operators and all those whose collective efforts have brought us to this important stage, especially Mr. Mustafa Mustapha, the Group CFO. Well done and we're proud of you all. You have played a significant role in the history of this our institution and in the development of Nigeria's capital market. Today you are returning to the NGX with Dangote Petroleum Refinery, marking another important chapter in that relationship. We are grateful for that, sir. We look forward, following the successful completion of the offer and the necessary regulatory processes, to welcoming Dangote Petroleum Refinery to our market as a listed company. Distinguished ladies and gentlemen, once again you are all welcome to the NGX. Thank you for listening.

The Chairman of the Exchange, my junior brother, Umaru Kwankwaso. And also CEO, Temi Popoola. The bulldozer, Ike Chioke, former President of the Exchange. My directors that are here. You know, my daughters that are here to also support us. Two of our great Group Vice Presidents, Mr. Kaki and Mr. Edwin. The one who doesn't really understand the word 'no'. Most of you don't know him, but he doesn't really listen at all. He doesn't know that there is a word called 'no'. Mustapha Mustapha, our CFO. Mustapha, it's better you stand up so that they can see you. David Bird, who is the CEO of the Dangote Refinery. I hope you know I haven't forgotten, he is here. Then Chuka, I saw him actually in the lift taking a bit of a nap because I think he has not been sleeping for a very, very long time. There are quite a lot of you, you know, I cannot really keep mentioning you. And also our bankers who really made it possible, they've been very, very supportive. Distinguished ladies and gentlemen, all of you have actually contributed for this great day. I want to first of all thank His Excellency, Mr. President, President Bola Ahmed Tinubu, for also making this great day possible because I mean, you know, this whole thing is to trust. What money follows is trust. If there is no trust, you will not see money. So that's what it is. So I think we must really thank him for doing a great job liberalizing the economy, where we have now our stock exchange racing and trying to become not only the great exchange but the biggest exchange in Africa. I know we have a lot, we have a lot to do, but we'll get there. So like what I said, the Chairman and members of this Nigerian Exchange Group, representatives of the Securities and Exchange, I know that Agama, being the regulator, he's not here, but maybe they are representatives of the Exchange. But Agama, really, that is the DG of the Nigerian Securities and Exchange Commission, he did extremely very well to make sure that this, you know, happens. The distinguished capital market operators, stock brokers, institutional investors, members of the investing public, gentlemen of the press, distinguished ladies and gentlemen. These are moments in the life of a nation when an occasion becomes greater than the event itself. When a transaction becomes a statement, when an investment becomes a possibility, when what initially belongs to a company begins in a different sense now to belong to the people. Today is such a moment. Today is a historic day not only for the Dangote Petroleum Refinery FZE and the Dangote Group but for Nigeria's capital market and by and large Africa and indeed every Nigerian, African who believes in the promise of our nation. Today is not simply about listing a company. It is about listing a new possibility for Nigeria and for Africa and for the black race. Today we formally open the initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE by inviting Nigerians, Africans, Caribbeans, Europeans, Americans, Chinese, everybody across the world to become shareholders in one of Africa's most transformational industrial projects. This moment represents the fulfillment of a commitment I made several years ago that when the refinery became fully operational and created sustainable value and risked the investment, because we don't really want people to risk their money, because if they do risk their money and they lose money, we are going to dent our own name. And that's why it is very important to make sure that what we are selling to the public is what their own generation upon generation will benefit from. So its ownership should actually be expanded to allow ordinary people to participate and also share the prosperity that we have created and we continue to create. Why are we making this offer? The primary purpose of this offer is to democratize wealth creation. It is not really about that. Yes, if it's a question about raising money, I think we have actually raised more than what we need as a group to execute all our projects. We have, you know, an amount of money that we want to spend to expand the group-wide, which I think we have so far 46 billion in the pipeline to invest and expand our various businesses to take us to the 2030 vision. And I think we are on track and we'll keep tracking ourselves to make sure we remain on track. So the real purpose of this one, like what I said, you know, when we did the private placement, we wanted to sell two and a half billion dollars, both private placement and the IPO. IPO was 1.5, private placement was 1 billion. We went in for 1 billion and, you know, it was very, very encouraging what came back to us, the demand. And because we even insisted that no, everybody should go and pay in dollars. We refused to collect one single currency other than dollar and we had to allocate, reallocate. I remember that myself. You know, Mustapha, you know, Chuka Bajie will sit down and say, okay fine, so what do we do? How do we, who do we take out of the list? Okay, maybe instead of taking people out of the list, let's try and give them something. And we ended up, you know, returning a lot of applications, their money, which is 1.2 billion, and we took only 2.5. So 2.5 billion is exactly what we plan to do for us to expand the business and take it to the next level. So with the private placement, we have already met all our demands. So coming back now to do IPO is actually about making sure that we invite the public so that they can get part of this benefit. Most likely, people don't actually know what they are buying, but I can tell you, you know, I mean, everything is in the hands of God, but this is going to be the largest, if it's not already, I am telling you, by end of this year, this will be the largest company in Africa, not in Nigeria. So you're buying, you are buying a future. It's a company that's not only by revenue, by profitability, will be way ahead of a lot of sovereign companies. And don't let the train leave you at the station. So however, we believe that an asset of this magnitude should not create value for only very few people. No, it should create value for millions of people. Not only Nigerians, all over the world. The IPO provides an opportunity for teachers, civil servants, people who even have their children abroad to now have the confidence of keeping them abroad so that even when there is devaluation, they'll continue to pay their school fees. Why? Because you will be getting your dividend in dollars. Even if there is mishap, there's devaluation with business, the business that you are investing in is a dollarized business and you will end up having your money. Even if it's in naira, you can collect the naira, you go and buy it whenever you want to buy, but your own investment has actually been preserved. So the world's distribution through a broad-based ownership around the world. This is something that you have to really understand. In the next three years, by the grace of God, three, four years thereabout, we'll try and also list outside the African continent, most likely in the US. And by doing so, because the company will be very, very large, we'll be having 10% of total America's refining capacity. We'll be at 1.4 million barrels, we'll be at 2.5 million, you know, barrels per day. I mean, 2.5 million, 2.5 million tons of polypropylene. We'll have what you call linear alkyl benzene, which is the only raw material of making detergent. We don't have them in Africa. So we only have 50,000 tons in Egypt, 100,000 tons in Algeria. In Nigeria, we are going to build the first train ever built in the world, which is 400,000 metric tons. This is not a projection, okay? We are already piling. Our site is very, very busy and I think most likely after we finish all the Christmas celebrations, you know, we will have an event in January to take the investing public to the refinery to see where their money is going to go to. So I think what you are really investing, you are not investing in just a story, you are not investing on, you know, I mean, we are past that dream, we are now nearing what you call reality. You will invest in reality and you can really be rest assured this company will continue to grow from strength to strength. In Dangote Group, we have a lot of people who are there, they are very, you know, hardworking. I know some of you, you are tired of seeing some of our faces, but there are a lot of new faces you don't know. There are quite a lot of them. You know, I think in the Dangote Group right now, the new guard, I think there are about two-thirds, we are now at one-third, so we are developing day by day. Some people, they are always even hiding. They don't want to be recognized. We have very few of them. England is in here, who is Group Head Human Resources. She's here. We have somebody who doesn't talk but he is as sharp as a bullet. Alhaji Suleiman. Somebody said that he should change his name to Alukan. I said that no. There are very few Alukos in the world. Mustapha Mohammed is here also. Let me recognize them. You have somebody who is also very hardworking but on the giving side. She doesn't bring money. She gives too much away. Zouera Foundation. So we have all these people. You have people who are young, vibrant, excited, they want to, they don't want to even sleep at home. You know, I mean, the guy who runs the refinery is actually 19 years younger than me, Mr. David Bird. So you can see we have quite a lot of them. You know, a lot of them, they couldn't come because we, you know, we didn't shut down the business. And then of course we have Dr. Mahmud Hassan is here. He used to be, he's our Chief Economist. He used to be Director at the Central Bank. So, and you know, really, Africa must own this share. What we are trying to do is trying to say, okay, what do we do? How do we stop people from removing our raw material? There's a lot of value in Africa. Africa is like a scratch card. Unless you scratch it, you'll not see the use of it. The opportunities are immense. People out there, they want to invest, but they don't want to invest in little companies. One, two, three, four million dollars. No, they are looking for big ticket items to come in and invest. So now what we are doing, we are trying to open up the market and make sure that when we open up the market, people will now join us, both Africans, non-Africans, they will join us to now have what you call the new Africa rising. The new Africa rising is the real Africa rising. So ladies and gentlemen, the strength of the offer. Investors naturally want to know why they should invest. The answer lies in the strength of the underlying business. Dangote Petroleum Refinery is a world-class industrial asset. It is the largest refinery in the continent of Africa and well on its way to becoming the largest in the world. Built to international standards and equipped with modern technology, it is also the only large-scale operational refinery currently supplying Nigeria's domestic market at scale while also serving other African markets and international markets. As you know, today the same refinery is the largest supplier of jet fuel to Europe. Europe must really thank Nigeria under the leadership of President Bola Ahmed Tinubu for keeping their planes to be flying. No, I'm very serious. We are very, very long. I think right now we're actually even being very, very careful. But the entire month of September, right from August, September, we sold out in terms of jet fuel. We have nothing to sell anymore. The only one that we have done is to reserve that of Nigeria. So you can see. And don't really mind the notes, I'm not reading the speech, I'm reading part of it and I'm talking to you. So when you look at it today, you have some people that will come and say, 'Ah, but we are doing transition. Why are you building a refinery?' Well, okay. You know, people who deceive themselves and believe that you are in transition, let them remain in transition. We are going ahead. The more that they don't build refineries elsewhere, we'll continue to build. You know, they say that when you see a deaf man who doesn't really hear, when you see him running, you must have seen something, so you should just follow him. The way it is today, from oil you produce 6,800 different items. So if you can sort out the problem of gasoline, diesel and jet fuel, how are you going to sort out the others? Because some of this thing that we're wearing fine is all coming from oil. 30% minimum of any car that you see is plastic inside it. Okay? In fact, it's difficult to even see any car that is not made of plastic outside. That's why now when somebody hits your car, you just remove that one and you change it. It's cheaper and much faster. It's all coming from oil. So people who say that we're in transition, fine, you know, and based on our own numbers, when you look at Air India having 580 aircrafts on order, Emirates having almost another 500 aircrafts on order, Etihad 140 aircraft on order, Riyadh Air, the new one, 300 and something, so where are they going to get all these jet fuel from when people are not building new refineries? So we've taken that opportunity. We are not only expanding this refinery, we're very bullish. 30th of September, we are launching exactly what you have, some of you have seen in Nigeria, in a place called Lamu in Kenya, and that one will be ready in three years. So this is actually an opportunity because I know that we have very short period of time. I'll try and round up and read part of the speech, but we will invite all of you and, you know, if there's a register, people should please put down their names. We'll invite you early January to come to the refinery and see things by yourself. And please forget about people saying, 'Okay, yeah, refinery, single, you know, train.' No, this is a merchant refinery. In January and February, the refinery, the finer will produce, they will supply goods. We will not make the normal money on a normal day if we have our RFCC down and we have also our CDU down. But we have majority part, January and February, I think our RFCC, which is the regenerator, right David, and the CDU, even they are all down, but we supply the market. The market is fully supplied. Don't let anybody come and deceive you that no, we don't have this. We have. We're a very responsible company. We are not going to allow queues to come back. What we are doing is not only about Nigeria, also about other, especially other African countries. So today, sometime in October, we're also launching a pipeline that is 2,620 or 650 kilometers, starting from Namibia. From Namibia, we'll take it to Botswana, Botswana into the other side of South Africa. And we're also taking up another line which will now go to Zimbabwe. From Zimbabwe, it will go to Zambia. Zambia, it will go to DRC. And there are other investments. 24th of this month, I've been trying to negotiate with them. Either we do very early on the 24th, because there is my junior brother who is celebrating 60th birthday, I don't want to say his name, I must be there no matter where I am. So if we don't even do it on the 24th or 25th, we're laying a very big port infrastructure, tank farms, long pipeline from Somalia into Ethiopia to make sure that we give them security for their energy. And we're also doing that. So about market, don't worry, whatever that you see us producing, we have a market, we will sell. And the train has left the station. People who try to stop us, they can't stop us. We are gone. So it is actually an opportunity for each and every one of you. One of the features I am most proud about is the accessibility of this offer. From the outset, we insisted that participation should not be limited to large institutional investors. That's why we didn't allow the private placement buyers to overcrowd you. That's why we said that no, we must do this one. And somebody asked me, 'But Mr., you know, you saw the demand is too high, you know, will you part away, you might not part away with your shares.' I said no, don't worry, I can even part away with myself. So really, in all honesty, make sure that this is a company when you invest, you will not only go home and sleep, your wife will be happy that at least there is something, if anything happens, it will take care of the family. It is an opportunity for, you know, low-earning people. It is an opportunity. Now we are looking at what do we create? What do we want to really create? What we want to create is the likes of Amazon, the likes of Microsoft. Why people bought the shares for next to nothing and now those shares have become something big. And that's what we are doing. We are not really looking for crumbs. No, this is a share you must buy, you must hold, and we'll continue to grow the company. So I think I've said too much. I better shut up. So let me conclude by actually thanking NGX led by his Chairman, Umaru Kwankwaso, who I think I must really thank him for not disappointing us because we had a lot of debate. Who do we really give this NGX? Because we have a lot to lose. Who do we give the chairmanship of this NGX? And we debated, as usual, with Ike, who likes to debate. Ike is not a politician. So we ended up saying that no, I think if we take him, he will be able to lead this exchange himself and Oscar at that time. And then even when Oscar was leaving, we said no, a very fantastic guy, Temi Popoola, very, very level-headed. And I think these are two great guys that I think have actually led, they have brought in what you call transformation. I was the President of this Exchange. Even when I was inviting people like Ike and Temi to assist and turn around the exchange to make it a world-class exchange, I never ever thought of this exchange will be at this level in 2026. So we must once again, I know that yes, our President, this is a small occasion, we'll have the big one where our own President Bola will join us, but I want to thank him for his leadership. I want to thank him for taking a lot of bold moves by removing subsidy, by democratizing the exchange rate, by also this refinery supporting the business. So we thank you very much for his leadership and we'll continue on a continuous basis to partner with the government to make sure that we make this country great. We make Africa great. And so wherever we are, even from far, you don't have to ask whether I'm from Botswana or from Nigeria. Once you see, before we get to that 2050, 2050 is not long. I was telling somebody, you know, he came to visit me at my house. I say, you know, I moved into this house in so, I've been there for 36 years, so 24 years is not long. If we are all healthy and alive, you know, it means that for any four people that you see on earth, one is a black man. So but we don't want to overcrowd also the world. We want to make sure that when you see us, we are proud, we are there as human beings. What will happen. I want to thank, I want to thank His Excellency, really, Excellency has done extremely well. We have never ever called upon him and he turned our request down, whether it's a problem, that time especially when we used to have a lot of traffic before we built our roads there, he has been very helpful with the community, with issues. And you know, I don't want to mention the name of the one big corporation which they invested in our own, you know, bonds, you know, asked me a question that, 'Well, look, the oil is in the southeast, south-south, why didn't you build a refinery? You are paying so much to transport it.' I said that yes, you know, the issue was is that when you now go and put up an investment, people know the value of investment. When you invest, you don't now also become a security. You go home and sleep. So Mr. Governor, thank you for doing a great job. I want to thank once again GMA, Dr. GMA, I know you are not here, but thank you so much for a very collaborative working relationship, ensuring that we did the right thing. Without you, this offer wouldn't have been possible. Our team of advisers, Betiva, First Cap, Stanbic, our brokers, solicitors, you know, reporting, accountants, registrars, receiving banks. I don't want to actually leave this hall without mentioning somebody who is also very, very dear to me who has worked day and night to make sure that we don't really do something wrong. His name is, I think, what's his name? Let me try and remember as I... Oh, he has gone. Okay. So I want to thank each and every one of you for making it very, very possible. And really, I must confess, when we gave this deadline and Mustapha said that no, he will be able to deliver any time, when I have my phone with me and I see Mustapha's name, I always try to dodge the call because I don't want him to give me good news, I mean bad news. But Mustapha has always been fantastic. He has over-delivered. Delivered, Mustapha. Thank you so much. Really, I want to thank the Dangote team of executives and our staff that really rolled up their sleeves. I'm proud of this team. I'm really proud of you working tirelessly to make this possible. But I must really say, all these things that we're enjoying today, you know, like what I told somebody at the beginning of my, you know, career as a businessman, I really had a great, you know, time. I was telling somebody that right now, you know, I don't mind, I can take commercial, I can take anything. I had my first private jet at 22 years and a half. So I try as much as possible to encourage people who are riding 900 million aircraft to please go and put that into action. We are not going to create a great nation without doing something productive. It took me 30 minutes to find a parking space in Abuja. I think it was Wednesday or Thursday. And I say, 'Oh, I wish this place was full of factories, not private jets.' And let me thank the entire Dangote team. You know, this is a team that we now have a vision and every single one of you is pushing to deliver on, you know, on this, you know, I mean, everybody is doing his own. Tony, Chenna, communication, everybody. And what we are getting today is because I actually deprived myself from having to enjoy my time with my family for many, many years. So, I must really thank my three daughters for giving me that, you know, listen, but I'm sure they must have forgiven me because at least they've seen the results. They didn't enjoy the part of this, but I'm actually translating that to their children. So, I'm sure I'm forgiven. Mariya, I'm sure you forgive me. Fatima. So today we are not merely offering shares. We are offering an opportunity to participate in the transformational chapter of not only Nigeria's economy, of Africa's economy. I want to tell you something. Together let us deepen our capital market. Together let us create prosperity through ownership. Together let us build a stronger Nigeria. Together let us ensure prosperity for Africa. I don't want anybody again to call me the richest man in Africa. I want to be called the wealthiest man in Africa so that I can create wealth for others. Thank you.