Is Dangote Refinery IPO worth the Hype?
Can’t say for sure, but the previous IPOs might give you a hint.
I didn’t realise how much I had actually lost until I compared it with what my colleague did with the same ₦200,000.
Let me take you back to November 2006.
Dangote Sugar was coming to the market through an IPO at ₦18 per share.
I had ₦200,000, so I invested it in Dangote Sugar.
₦200,000 ÷ ₦18 = approximately 11,111 shares.
At the time, I thought I was making a smart investment decision.
Fast-forward to 2026.
Dangote Sugar was trading at about ₦71 per share.
11,111 shares × ₦71 = approximately ₦788,889.
At first, I thought:
“Not bad. My ₦200,000 has become almost ₦800,000.”
But then I adjusted my original ₦200,000 for inflation.
Using a cumulative inflation multiplier of approximately 13.83×:
₦200,000 × 13.83 = approximately ₦2.77 million.
So while my shares were worth about ₦789,000, the equivalent purchasing power of my original ₦200,000 was approximately ₦2.77 million.
That is a gap of roughly ₦1.98 million.
Yes, I received dividends and bonuses over the years, but the comparison still made me think differently about investing.
My colleague, an economist, took his same ₦200,000 in November 2006 and bought land in Sangotedo.
By February 2026, he sold that land for ₦50 million.
He had also leased the same land for 10 years and received ₦15 million.
Total proceeds:
₦50 million + ₦15 million = ₦65 million.
Same ₦200,000.
Same year.
Same country.
Different assets.
Very different outcomes.
This doesn’t mean land will always outperform stocks. The real lesson is to understand what drives the value of an investment: location, infrastructure, demand, development, income potential, holding period and exit value.
And today, locations benefiting from major developments and infrastructure, including the wider Lekki corridor and the Dangote Refinery axis, continue to attract real estate attention.
If you’re looking for a property in Elerangbe, Christianah Garden City is currently selling at ₦10 million, with a C of O land title.
Your ₦200,000 story may be from 2006.
Your next investment decision is happening today.
What would you have done with ₦200,000 in 2006 — shares or land?
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