SEC has banned the promotion of Dangote Refinery IPO and ordered the refund of investor funds.
NewsOnline Nigeria reports that the Securities and Exchange Commission (SEC) has directed all capital market operators to immediately cease the marketing and promotion of a purported Initial Public Offering (IPO) by Dangote Petroleum Refinery and Petrochemicals FZE, stating that no application for such an offer has been filed with or approved by the regulator.
The directive was issued in a public notice released on Tuesday following the circulation of advertisements, flyers, digital banners, emails, and other promotional materials claiming to offer investment opportunities in the refinery.
According to the commission, it became aware of widespread promotional campaigns across social media platforms and investment channels, with some registered capital market operators allegedly participating in the exercise.
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The SEC described the activities as unauthorized and potentially harmful to investors and the integrity of Nigeria’s capital market.
“The Securities and Exchange Commission has banned the marketing and promotion of a purported Initial Public Offering by Dangote Petroleum Refinery & Petrochemicals FZE, warning that no application for such an offer has been filed with or approved by the regulator,” the statement said.
The regulator condemned the ongoing pre-marketing activities, describing them as an “unwholesome and manipulative exercise.”
According to the SEC, some operators have been soliciting advance subscriptions and commitments from investors for an offer that has not received regulatory approval.
The commission warned that such actions could mislead investors, create false market expectations, and undermine confidence in the capital market.
It noted that invitations encouraging investors to create accounts, pre-fund investments, or secure guaranteed share allocations amount to market manipulation and violate provisions of the Investments and Securities Act.
The SEC directed all registered capital market operators, including stockbrokers and digital investment platforms, to immediately halt all activities relating to the purported public offer.
The commission ordered operators to stop publishing, reposting, or distributing any promotional materials connected to the alleged IPO and to remove all related content from their websites, social media pages, and messaging platforms within 24 hours.
Furthermore, operators were instructed to stop accepting deposits, investment commitments, account openings, or expressions of interest tied to the purported offer.
In a stronger directive, the SEC ordered any operator that had already collected funds from investors in relation to the purported IPO to reverse and refund such payments within 24 hours.
The commission warned that failure to comply would attract sanctions under the provisions of the Investments and Securities Act 2025 and the SEC Rules and Regulations.
The regulator advised investors to rely solely on official communications approved by the SEC and to avoid responding to high-pressure marketing tactics related to the purported offering.
“All such high-pressure marketing tactics, or transfer of funds to any operator for ‘pre-IPO’ placement, should be ignored as they did not receive the commission’s approval,” the notice stated.
The SEC assured investors that if it eventually receives and approves an application for a public offering by Dangote Petroleum Refinery and Petrochemicals FZE, an approved prospectus would be made publicly available in accordance with the law.
The development comes amid reports that the Dangote Group is considering selling a 10 percent stake in its $20 billion, 650,000-barrel-per-day refinery through a Pan-African IPO expected in 2026.
