SEC Orders Immediate Halt on Dangote Refinery’s Unapproved IPO Promotions and Refunds Investors
From Our Correspondent.
The Securities and Exchange Commission (SEC) has issued an urgent directive to suspend all marketing and promotional activities related to a purported Initial Public Offering (IPO) by Dangote Petroleum Refinery & Petrochemicals FZE.
The regulator warned investors that no official application or approval for such an offering has been filed or granted.
In a public notice, the SEC stated it had identified widespread advertisements, flyers, digital banners, and targeted emails across social media and investment channels, soliciting interest in an alleged future IPO by the refinery. Its intervention was prompted by reports that some registered Capital Market Operators (CMOs) were actively promoting the offer and soliciting subscriptions without regulatory approval.
The SEC clarified that “No application for the registration of an IPO or public offer of shares of the refinery has been filed with or approved by the Commission.” It expressed concern that such activities could mislead investors, distort market expectations, and undermine confidence in Nigeria’s capital market.
Invitations encouraging investors to create accounts, pre-fund subscriptions, or secure guaranteed allocations were deemed market manipulation and a violation of the Investments and Securities Act (ISA) 2025. The regulator ordered all registered operators, especially stockbrokers and digital investment platform promoters, to immediately cease all related promotional activities.
Operators are required to remove all marketing materials from websites, social media, and messaging groups within 24 hours. Additionally, they must stop accepting deposits, commitments, or expressions of interest related to the offer, and refund any funds obtained from investors within the same timeframe.
Violations of these directives will attract sanctions under the ISA 2025 and SEC regulations. The SEC emphasized that any unapproved fundraising activity should be disregarded, warning investors to rely solely on official communications issued through authorized channels.
While vigilance is advised, the SEC assured the public that if an application for a public offering by Dangote Refinery is eventually approved, a comprehensive prospectus will be made available in accordance with legal provisions.
