“We Are Ready For Them” — Dangote Reacts to Court Order Over Lamu Refinery Land

Aliko Dangote says he’s ready to face any legal battle standing in the way of his businesses, and he’s even open to cutting his stake in the Dangote Petroleum Refinery down to 25% as more Africans buy into the company.

This comes after a Kenyan court ordered that construction activity be paused at the site of Dangote’s planned 700,000-barrel-per-day refinery in Lamu, following a land dispute filed by 133 residents who claim the site is their ancestral land. The case will be heard on October 14, but Dangote Group says the ruling hasn’t stopped the groundbreaking ceremony itself.

Speaking at a fireside chat at the Nairobi Securities Exchange, Dangote brushed off the legal challenge.

“I’m sure some of you must have seen that one court has given an order that we shouldn’t do any construction? I said no, no. This is normal for us in Africa. In fact, this is even small,” he said, adding that his group faced a tougher fight in Senegal, where a factory was shut down for a year before the Supreme Court ruled in their favour.

“Anyone who wants to cause trouble, we are ready for them,” he said.

On the business side, Dangote confirmed the Lamu refinery will cost between $15bn and $16bn and is targeted for completion by 2030. He said the project has already moved fast, with equipment deployed to site, and will employ over 60,000 people during construction.

He also revealed plans to list the Lamu refinery on the Nairobi Securities Exchange rather than in Nigeria, calling it part of a push to grow African capital markets.

On ownership, Dangote said the group had planned to raise $2.5bn through a private placement and IPO, but demand hit $3.7bn. A follow-up $1.6bn offering was created specifically to expand ownership among everyday Africans.

“We don’t mind, even if Dangote will end up having twenty or twenty-five per cent, we have nothing to hide,” he said, noting shareholders would also have power to vote out leadership at AGMs if unsatisfied with performance.

Dangote giving up majority ownership to Africans — smart move or risky bet? 👇