Rewane: Dangote Refinery IPO Is a Surer Bet Than Football Gambling

Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company (FDC), says the Dangote Refinery initial public offering could pull Nigerians away from gambling and into productive assets. He spoke on Channels Television, arguing that the refinery's plan to attract up to 10 million shareholders would deepen Nigeria's investment culture.

Rewane said the target, if met, would give Dangote Refinery one of the largest shareholder bases in the world. He was quick to add that a large number of shareholders does not automatically translate into the highest investment value.

Why he rates the offer above betting

Rewane said a big share of income among low-income Nigerians goes into betting and other forms of gambling. He argued that putting that money into Dangote Refinery gives them a stake in a business they can identify, with returns tied to performance rather than 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," he said.

He drew a direct comparison between the two. "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," Rewane said.

In his view, investing rests on identifiable factors and business performance. Gambling, he said, depends largely on luck.

Comparing shareholders with voters

The FDC chief executive compared the proposed 10 million-investor target with voter turnout in Nigeria's 2023 general election. His point: widespread share ownership could give more citizens a direct stake in the country's economic development.

Rewane said Nigerians stand to gain more from holding shares over time than from selling their permanent voter cards for quick cash. He stressed the long-term value of owning part of a productive asset.

He also said the IPO could widen participation in the capital market, letting ordinary Nigerians become shareholders in one of the country's biggest industrial projects. He described it as Africa's largest IPO and a compelling investment opportunity.

What it means for the market

Beyond returns to shareholders, Rewane said the offer could lift government revenue through higher tax contributions as the refinery's ownership base broadens.

The comments come as the refinery moves toward a listing. Dangote has announced plans to list the refinery on the US stock market after its Nigerian IPO. The offer has already drawn heavy demand. According to reports, the Dangote Refinery IPO raised N1.5 trillion in six hours, with platforms including Bamboo and Cowrywise crashing under the traffic.

For Nigerian investors, the pitch is straightforward: a slice of the country's biggest industrial asset against the odds of a football coupon. Whether the 10 million-shareholder target holds will depend on how the offer is priced and how easily ordinary Nigerians can buy in.