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⚖️ Shariah Advisory & Compliance Review

Is the Dangote IPO Halal?

A transparent breakdown of the Islamic financial screening conducted by accredited Shariah advisers according to global AAOIFI standards.

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Prospectus Disclosure (Page 38 & 61–64)

Certified Permissible by Buraq Capital & FRACE

Buraq Capital Limited was formally appointed as Shari'ah Adviser to the Offer. Following an in-depth audit using AAOIFI Shariah Standard No. 21, Buraq Capital issued a formal opinion confirming that investment in the ordinary shares is permissible (Halal) under Shari'ah. The offer was further certified by the Financial Regulation Advisory Council of Experts (FRACE).

How the Assessment Was Conducted

1

Business Activity Screen (Passed ✅)

The primary business of Dangote Petroleum Refinery & Petrochemicals FZE is the refining of crude petroleum into premium motor spirit (petrol), automotive gas oil (diesel), aviation turbine fuel (jet fuel), dual purpose kerosene, and petrochemical feedstocks (polypropylene and polyethylene).

✅ Verdict: Manufacturing and refining fuel and essential chemicals is fundamentally permissible (Mubah) and beneficial to human society. DPRP FZE does not engage in prohibited activities such as alcohol distillation, conventional interest-banking, gambling, pork production, or weapons manufacturing.
2

Financial Ratio Screening (Passed ✅)

Under AAOIFI Standard No. 21 and the Lotus Islamic Index screening rules adopted for the offer, a company's financial structure must comply with strict non-permissible leverage and revenue caps:

Interest-Bearing Debt / Total Market Cap or Assets (< 33%) PASSED
Interest Income / Total Revenue (< 5%) PASSED (< 0.35%)
Haram / Non-Compliant Revenue (< 5%) 0.00% (PASSED)

🛡️ HalalStock Educational Position

HalalStock is an independent financial education portal, not a Mufti or fatwa-issuing institution. We reference official certifications published in the prospectus by regulated authorities (Buraq Capital Limited and FRACE). Shariah compliance can evolve over time as balance sheets change. HalalStock will continue to monitor and publish ongoing quarterly Shariah audits once DPRP FZE trades publicly on the NGX.

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