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Marketers, IOCs Are Behind Lamu Refinery Protests – Dangote

President of the Dangote Group, Aliko Dangote, has accused local petroleum marketers and international oil companies of fuelling protests against his proposed $16bn refinery project in Lamu, Kenya.

Dangote made the allegation during an interview with the BBC’s Focus on Africa programme, following the groundbreaking ceremony for the refinery held on Wednesday alongside Kenyan President William Ruto.

The proposed refinery is expected to process 700,000 barrels of crude oil per day when completed in 2030, making it one of the largest refining projects in Africa.

Dangote rejected claims that his company had acquired more land than required for the project, saying the portion being used was allocated by the Kenyan Government.

The project has faced opposition from some residents of Lamu, particularly over compensation for land acquired for the development.

A group of 133 residents has taken the matter to the Kenyan High Court, which has restricted excavation and other construction activities on the disputed land pending further proceedings. The next hearing is scheduled for October 14.

Environmental concerns have also been raised by the Save Lamu campaign group, which wants the environmental impact assessment and proposed measures to protect local communities made available.

Despite the protests and legal challenge, Dangote said the refinery project would proceed and remain on schedule for completion in 2030.

He described the development as his largest proposed investment outside Nigeria and said it would seek to replicate the success of his refinery in Lagos in another African market.

The Lamu project is expected to become the largest refinery in East Africa and one of Kenya’s biggest infrastructure projects since independence.

Dangote said the construction phase could create about 60,000 jobs, with local communities expected to benefit from employment and other economic opportunities.

The project will also feature a 1,000-megawatt power plant to supply electricity to the refinery and other industries that may develop around the facility.

The groundbreaking ceremony was attended by the leaders of Uganda, Ethiopia, Togo and Benin.

According to Reuters, Dangote has offered regional governments a combined 30 per cent stake in the refinery.

The Lamu project is part of Dangote Group’s expansion across Africa, following its investment in Nigeria’s Dangote Petroleum Refinery in Lagos, which has a processing capacity of 650,000 barrels per day.