The Securities and Exchange Commission (SEC) has warned the Nigerian public to beware of fraudulent platforms and unofficial channels attempting to exploit the upcoming Dangote Refinery Initial Public Offering (IPO).
The regulator’s caution follows reports of potential scams targeting investors interested in the massive equity offering, which is projected to raise approximately N2.15 trillion. This scale places the transaction among the largest equity offerings ever undertaken in Africa.
In a report by Channels Television, the SEC emphasised the need for investors to use only authorised channels to avoid falling victim to digital fraud and financial loss.
The commission noted that bad actors are increasingly using social media and deceptive websites to mimic legitimate investment opportunities. These fraudulent entities often solicit funds from unsuspecting retail investors by promising easy access to Dangote Refinery shares outside of the official regulatory framework.
Protecting investors during the equity offering
To mitigate these risks, the SEC advised that all legitimate transactions related to the IPO must be processed through licensed broker-dealers and registered investment firms. The regulator stated that any money sent to unverified accounts or through unofficial digital applications would not be protected by the commission’s regulatory safeguards.
Investors are urged to conduct due diligence by verifying the credentials of any platform or individual claiming to manage their IPO subscriptions. The SEC maintains a database of registered intermediaries, and the public is encouraged to cross-check all service providers against this list before committing any capital.
The Dangote Refinery, located in the Lekki Free Trade Zone, remains a cornerstone of Nigeria’s energy infrastructure. The successful launch of this IPO is expected to provide significant capital to support the facility’s operations and its role in reducing the country’s reliance on imported petroleum products. The sheer volume of the N2.15 trillion target has attracted intense interest from both local and international institutional investors, creating a high-risk environment for potential scams.
The SEC has indicated that it will heighten surveillance of digital financial channels as the subscription period approaches. Investors should await official timelines and a list of approved selling agents from the Dangote Group and the Nigerian Exchange (NGX) to ensure their participation is valid and secure.
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