Dangote Industries Limited President, Aliko Dangote, has said his group is prepared to defend its business interests through the courts as legal disputes emerge over its planned refinery project in Lamu, Kenya.
Speaking at a fireside chat hosted by the Nairobi Securities Exchange, Dangote addressed concerns surrounding the proposed 700,000 barrels-per-day refinery, including a recent court order affecting activities at the project site.
The Malindi Environment and Land Court directed parties to maintain the existing situation on the disputed land pending a hearing scheduled for October 14. The case was brought by 133 residents of Chandavai in Lamu County, who claim the land earmarked for the refinery is ancestral property that has been used by their families for generations.
Dangote said legal disputes were not unusual in the company’s operations across Africa and expressed confidence that the Lamu project would continue.
He cited an earlier dispute involving a Dangote factory in Senegal, where operations were halted for about a year before the company pursued the matter through the Supreme Court.
“We’re ready for them,” Dangote said, referring to those challenging the group’s projects through legal action.
The Dangote Group had earlier clarified that the Kenyan court order had not cancelled the refinery’s groundbreaking ceremony, although activities at the site could be affected until the case is heard.
The proposed refinery is expected to cost between $15 billion and $16 billion and is targeted for completion by 2030. Dangote said construction equipment had already been moved to the site.
He also said the project could require more than 60,000 workers during its development, with the company planning to train local people to fill some of the positions.
Beyond the refinery itself, Dangote said the investment could attract other businesses and create opportunities for small and medium-sized enterprises around the facility.
Refinery to be listed in Kenya
Dangote also disclosed that the company plans to list the Lamu refinery on the Nairobi Securities Exchange rather than the Nigerian Exchange.
He said the move would support wider participation by African investors and deepen the development of capital markets on the continent.
The businessman further disclosed plans to increase public ownership of the Dangote Petroleum Refinery in Nigeria.
According to him, the group initially planned to raise $2.5 billion through a combination of private placement and an initial public offering. The private placement alone reportedly attracted $3.7 billion in demand.
Dangote said an additional $1.6 billion offering was subsequently created to expand public ownership.
He added that Dangote Industries would be willing to reduce its ownership of the refinery to between 20 and 25 per cent if there was sufficient demand from African investors.
The proposed ownership structure would give more investors an opportunity to hold shares in the refinery, while existing shareholders would have voting rights on matters including the company’s leadership.
Dangote said the group would continue to focus on corporate governance and the protection of minority shareholders as it expands its presence in African capital markets.
