By Gold Jeremiah
The Securities and Exchange Commission (SEC) has ordered capital market operators to immediately discontinue all promotional activities linked to a purported Initial Public Offering (IPO) by Dangote Petroleum Refinery and Petrochemicals FZE, stressing that it has neither received nor approved any application for such an offer.
The directive was issued in a public notice released on Tuesday following the circulation of advertisements, flyers, digital banners, and targeted emails promoting an alleged public offering by the refinery.
According to the commission, it became aware of the promotional materials being distributed across social media platforms and investment channels and expressed concern over the participation of some registered capital market operators in the exercise.
“The Securities and Exchange Commission has banned the marketing and promotion of a purported Initial Public Offering by Dangote Petroleum Refinery & Petrochemicals FZE, warning that no application for such an offer has been filed with or approved by the regulator,” the statement said.
The SEC described the ongoing pre-marketing campaign as an “unwholesome and manipulative exercise,” noting that certain operators were actively soliciting advance subscriptions for an offer that had not been submitted to the commission for approval.
It warned that the activities could mislead investors, distort market expectations, create information asymmetry, and ultimately undermine confidence in the capital market.
The commission further stated that invitations encouraging investors to create accounts, pre-fund investments, or secure guaranteed share allocations amounted to market manipulation and constituted a serious breach of the Investments and Securities Act.
Consequently, all registered capital market operators, particularly stockbrokers and promoters of digital investment platforms, were directed to immediately cease publishing, reposting, or distributing any promotional materials, commentaries, or advertisements relating to the acquisition or allocation of shares in the refinery.
The regulator also instructed operators to remove all unauthorised marketing materials from their websites, social media platforms, and messaging groups within 24 hours.
In addition, operators were ordered to stop accepting deposits, investment commitments, account openings, or expressions of interest tied to the purported public offer.
The SEC further directed that all funds already collected from investors in connection with the alleged offering be refunded within 24 hours of the notice.
It warned that any operator failing to comply with the directive would face sanctions under the Investments and Securities Act 2025 as well as the SEC Rules and Regulations.
The commission advised investors to exercise caution and rely solely on official communications issued through approved regulatory channels.
“All such high-pressure marketing tactics, or transfers of funds for ‘pre-IPO’ placements, should be disregarded, as they have not received the commission’s approval,” the regulator stated.
The SEC assured investors that if an application for a public offering by Dangote Petroleum Refinery & Petrochemicals FZE is eventually submitted and approved, an authorised prospectus will be made available to the public in accordance with the provisions of the Investments and Securities Act 2025.
The development comes amid reports that the Dangote Group plans to sell a 10 per cent stake in its $20 billion, 650,000-barrel-per-day refinery through a landmark Pan-African IPO expected in 2026.
