The Securities and Exchange Commission (SEC) has stopped the promotion of a proposed initial public offering (IPO) by Dangote Petroleum Refinery and Petrochemicals, warning that no application for such an offer has been filed with or approved by the regulator.
The commission said its action followed the circulation of advertisements, social media campaigns, flyers, digital banners and emails encouraging investors to position for a refinery share sale that has not received regulatory clearance.
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According to the SEC Director-General, Emomotimi Agama, some capital market operators went beyond discussing a possible future listing and began soliciting subscriptions, encouraging investors to open accounts, fund investments and seek guaranteed share allocations in an offer that does not yet exist in an approved form.
The regulator expressed concern that such activities could mislead investors, create information imbalances and expose members of the public to financial losses.
Agama said the commission has a responsibility to protect investors from unapproved investment schemes and fundraising activities.
“There are people setting up all manner of schemes and collecting money from unsuspecting investors who are not aware of the process,” he said.
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The SEC noted that excitement surrounding a potential public listing of the refinery could be exploited by promoters seeking to collect funds before the required regulatory approvals are obtained.
According to the commission, no registration application for an IPO or public offer of shares by the refinery has been submitted or approved. As a result, any attempt to market allocations or collect investor funds is considered premature.
The regulator also highlighted concerns about the impact of such activities on the credibility of Nigeria’s capital market, especially as the country seeks to attract more international investors.
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Agama warned that market operators promoting unapproved offers could face disciplinary action for violating regulatory standards.
The SEC directed operators involved in the promotions to immediately cease all related advertising and marketing activities, remove existing promotional materials from digital platforms and refund any funds collected from investors in connection with the purported offer.
The commission said it is working to resolve the issue quickly while ensuring that all parties comply with the provisions of the Investments and Securities Act 2025.
The development underscores strong investor interest in a potential future listing of Dangote Refinery, while reinforcing the SEC’s position that any public offering must follow established regulatory procedures before it can be marketed to investors.
