Precious Nwonu, Enugu
President of Dangote Industries Limited, Aliko Dangote, has said he is prepared to defend his investments in court as his group moves ahead with plans to build a 700,000-barrel-per-day refinery in Lamu, Kenya.
Dangote made the remarks during a fireside chat at the Nairobi Securities Exchange, where he discussed the refinery project, the group’s expansion across Africa and plans to broaden public ownership of some of its businesses.
His comments came after the Malindi Environment and Land Court ordered parties involved in a land dispute to maintain the existing status quo on the site until a hearing scheduled for October 14.
The case was filed by 133 residents of Chandavai in Lamu County, who claim the land earmarked for the refinery forms part of their ancestral territory and has been occupied and cultivated by their families for generations.
Dangote Group said the court order had not stopped the planned groundbreaking ceremony but could restrict activities at the site pending the hearing.
Dangote, however, expressed confidence that the legal dispute would not derail the project, saying his businesses had faced similar challenges in other African countries.
He recalled a case in Senegal where one of the group’s factories was shut for a year before the company secured a Supreme Court judgment.
“Anyone who wants to cause trouble, we are ready for them,” Dangote said, adding that the latest legal challenge was relatively minor compared with previous experiences.
The Lamu refinery is projected to cost between $15bn and $16bn and is expected to be completed by 2030. Dangote said the project had already moved beyond the planning stage, with construction equipment deployed to the site.
He described Kenya as an important part of the group’s African expansion strategy and said the company regarded countries across the continent as its home.
The refinery is expected to create substantial employment opportunities, with Dangote estimating that more than 60,000 people could be engaged during construction.
He added that the project would also stimulate the growth of small and medium-sized businesses and attract other industries to the area.
Dangote Eyes Nairobi Listing
Dangote also disclosed plans to list the Lamu refinery on the Nairobi Securities Exchange rather than the Nigerian Exchange.
He said the move would support greater integration of African capital markets and allow investors in Kenya and other African countries to participate directly in the project.
According to him, the proposed structure reflects the group’s broader objective of increasing African participation in the ownership of its businesses.
Dangote said the group initially planned to raise $2.5bn through a private placement and an initial public offering.
The private placement was initially targeted at $1bn, while another $1.5bn was planned through the IPO. He said the private placement eventually attracted interest worth $3.7bn.
The group subsequently created another $1.6bn offering as part of efforts to expand public ownership.
Dangote said the company was prepared to increase the amount of shares available to investors if demand remained strong.
He said the group could eventually reduce its ownership of the Dangote Petroleum Refinery to between 20 and 25 per cent if that would allow more Africans to become shareholders.
“We don’t mind, even if Dangote will end up having twenty or twenty-five per cent, we have nothing to hide,” he said.
Dangote said increased public ownership would also give shareholders greater influence over the company’s management through annual general meetings.
He explained that shareholders would have the power to vote on the leadership if they became dissatisfied with the company’s performance.
The billionaire said the group remained committed to corporate governance and protecting minority shareholders as more of its businesses are opened to public investment.