With the Dangote Refinery IPO everywhere right now, it’s worth saying plainly: don’t borrow money to buy into it. Not from a loan app, not a salary advance, not a friend’s “investment club” arrangement. Here’s why that matters more than it might seem.
The short version
A loan has a fixed cost you must pay no matter what happens. An IPO has no guaranteed return at all. When you borrow to invest, you’re stacking a certain cost on top of an uncertain outcome, and that math rarely works in your favour.
Loan interest doesn’t care how your investment performs
Most Nigerian loan apps charge interest that adds up fast, often in the range of several percent a month once you account for fees. That interest is due whether the Dangote share price rises, falls, or just sits still after listing. If you borrow ₦100,000 to subscribe and the shares are worth ₦90,000 six months later, you still owe the full loan plus interest. The investment doesn’t get to decide whether you repay it.
You might not even get the shares you borrowed for
Early numbers suggest this offer could be heavily oversubscribed, which means allotment could be scaled down. You could borrow ₦100,000 planning to get a certain number of shares, and end up with fewer than you expected, while still owing the full loan amount you took out.
Listing day isn’t payday
Even once the stock lists on the NGX, there’s no rule that says the price goes up right away, or at all. Newly listed Nigerian stocks have gone both ways in the past. If you need the money back on a loan’s schedule, but the shares haven’t moved the way you hoped, you’re stuck selling at a loss just to make a repayment deadline that has nothing to do with the investment itself.
What to do instead
Only invest money you already have and can genuinely afford to leave alone. If ₦5,250, the minimum subscription, is a stretch right now, that’s a sign to wait rather than to borrow. There will be other opportunities to invest once your finances are steadier, and this specific IPO isn’t a one-time door that closes forever on wealth building.
If you’re weighing whether this investment makes sense for you at all, we’ve broken that down in our Dangote Refinery IPO investor guide. And if you do decide to invest with money you already have, the actual process is simple, we’ve covered it in our step-by-step guide to buying Dangote Refinery IPO shares.
Quick questions people are asking
Is it ever okay to borrow to invest?
Generally no, especially with short-term, high-interest loans. Professional investors who use borrowed money usually do so with far lower interest rates, more capital cushion, and a much longer time horizon than a typical loan app offers.
What if I’m confident the shares will rise?
Confidence isn’t the same as certainty. Nobody, including experienced investors, can guarantee a stock’s price after listing. A loan’s cost is guaranteed; the investment’s return isn’t.
What should I do if I really want to invest but don’t have the money?
Wait, save toward it, or start with a smaller amount you already have. Missing this specific offer isn’t the same as missing your only chance to build wealth.
This isn’t financial advice. It’s a caution based on how debt and uncertain investments interact. Always do your own research and think through your own finances before borrowing or investing.
