A coalition of Nigerian minority and retail shareholders under the aegis of the Independent Shareholders Association of Nigeria (ISAN) has intensified calls for a dedicated allocation in the proposed initial public offering (IPO) of Dangote Refinery and Petrochemicals Ltd.

They warned that failure to create a reserve for ordinary Nigerians could lead to the dominance of institutional investors and weaken public participation in the exercise.

The shareholders’ group urged the refinery management, the Securities and Exchange Commission (SEC) and Nigerian Exchange Limited (NGX) to ensure that a clearly-defined portion of the share volume is specifically reserved for Nigerian retail and minority investors.

In a statement signed by the National Coordinator of ISAN, Moses Igbrude, the group described the anticipated IPO as a historic opportunity for ordinary Nigerians to participate directly in the ownership of a major national infrastructure with significant economic value.

According to the coalition, there are growing concerns in the retail investment community that the offering could be substantially absorbed by pension fund administrators (PFA), institutional asset managers and high-net-worth investors who are already mobilising large pools of capital ahead of the listing.

The shareholders maintained that while institutional participation remains important for the success of the offer, excluding small investors from meaningful participation would undermine the broader objective of inclusive wealth creation and reduce public confidence in the capital market.

They noted that the refinery has consistently been presented as a transformational project, stressing that extending that vision into the ownership structure of the IPO would enable millions of Nigerians to become shareholders in the refinery rather than remaining only consumers of its products.

The coalition argued that reserving a retail tranche would not only deepen local ownership of a strategic national asset but would also help to strengthen investor confidence in the Nigerian capital market at a time when the regulators are seeking to expand retail participation and attract more domestic investors into the market.

According to the shareholders, expanding retail participation in the IPO would create a wider base of long-term investors whose interests are aligned with the growth and sustainability of the refinery, while also encouraging financial inclusion and wealth distribution across different income groups.

The group further pointed out that many countries adopt dedicated retail allocations in major strategic listings as part of efforts to democratise ownership, improve market stability and encourage stronger public participation in the capital market ecosystem.

Therefore, they called on the SEC and the NGX to engage proactively with the issuing company to ensure that a transparent and well-structured retail allocation framework is disclosed before the commencement of the public offer.

The coalition pointed out that such a structure would be consistent with the provisions of the Investments and Securities Act 2007 as well as the SEC’s rules governing public offerings and investor protection.

The shareholders also expressed readiness to work with regulators, market operators and the refinery management to ensure the successful implementation of a transparent retail participation model capable of giving ordinary Nigerians equitable access to the offering.