morganable business/economy
The Dangote Group had earlier clarified in a statement that while the court had not stopped the groundbreaking ceremony for the refinery, the order could affect certain site activities until the case is heard.
KaNo—
Africa’s richest man and President of Dangote Industries Limited, Aliko Dangote, has signalled readiness for a prolonged legal battle over his company’s refinery investments in Africa.
This development came as he disclosed plans to significantly dilute his ownership in the Dangote Petroleum Refinery to allow broader African participation.
Dangote spoke amid a brewing dispute over land rights in Kenya, where a court order has temporarily restricted activities at the site of a proposed 700,000-barrel-per-day refinery in Lamu County.
The development follows a ruling by the Malindi Environment and Land Court, which directed that the “status quo” be maintained on the disputed land pending a hearing scheduled for October 14, 2026.
The order stems from a lawsuit filed by 133 residents of Chandavai, who claim ancestral ownership of the land earmarked for the refinery project.
Despite the legal setback, Dangote insisted that the project would proceed, describing the challenge as a routine obstacle in the course of doing business across the continent.
Speaking during a fireside chat at the Nairobi Securities Exchange, the billionaire businessman dismissed the court ruling as minor, stressing that his company had faced more difficult situations in other African countries.
“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,” Dangote told investors.
He further declared that the company was prepared to confront any legal opposition, suggesting that the forces behind the lawsuit were known to him.
“Anyone who wants to cause trouble, we are ready for them,” he said.
The Dangote Group had earlier clarified in a statement that while the court had not stopped the groundbreaking ceremony for the refinery, the order could affect certain site activities until the case is heard.
“The court has not halted the groundbreaking ceremony of the refinery at this stage. However, activities at the site may be affected by the ruling as both parties are required not to carry out activities until the case is heard on October 14,” the company stated.
Dangote drew parallels with a previous experience in Senegal, where one of the group’s factories was shut down for a year before the company secured a favourable judgement from the Supreme Court.
“In Senegal, it’s not even the court. They stopped our factory for one year. We went up to the Supreme Court to get a judgement. So anybody who wants to cause trouble, we are ready for them,” he added.
The planned Lamu refinery is expected to mirror the scale and capacity of the Dangote refinery in Nigeria, with an estimated cost of between $15bn and $16bn.
The project is targeted for completion by 2030 and is a central component of the group’s broader expansion strategy across Africa.
Dangote described Kenya as a strategic investment destination, emphasising that the company views African countries as a unified market.
“We’re taking Kenya as our home. It is home here, and that’s why we’re here to invest. Anywhere in Africa is home, because we understand the issues, we understand the problems,” he said.
He revealed that construction equipment had already been mobilised to the site, underscoring the group’s commitment to the project despite the ongoing dispute.
Beyond its scale, the refinery is expected to generate significant economic benefits, including job creation and opportunities for local businesses.
Dangote disclosed that the project would require more than 60,000 workers during its construction phase.
“We will try as much as possible to train a lot of people here because part of the project will need over 60,000 people working there,” he said.
He added that the refinery would serve as a catalyst for industrial growth in the region, attracting ancillary businesses and boosting economic activities in Lamu and beyond.
In a move aimed at deepening African capital markets, Dangote also announced plans to list the Lamu refinery on the Nairobi Securities Exchange rather than the Nigerian Exchange.
According to him, the decision reflects a commitment to localising investments and ensuring that host countries derive direct financial benefits from major infrastructure projects.
“If there’s this kind of collaboration, it means that tomorrow, if we are going to have the refinery here in Lamu, it will be listed here in Lamu; we don’t have to list it in Nigeria. We shouldn’t list it in Nigeria. We should list it here,” he said.
Dangote further outlined plans to broaden ownership of his company’s assets, stating that the group was willing to sell a larger shareholding to African investors.
He disclosed that the company initially sought to raise $2.5bn through a combination of private placement and an initial public offering, with $1bn targeted from private investors and $1.5bn from the IPO.
However, the private placement attracted significantly higher demand, reaching $3.7bn, prompting the company to limit the offer to the planned $2.5bn after consultations with its co-shareholder, the Nigerian National Petroleum Company.
“The private placement came out with a demand of $3.7bn. So we already took the $2.5bn after a lot of argument because we are two shareholders then, ourselves and the Nigerian National Petroleum Company,” he explained.
Following the strong investor interest, Dangote said the group created an additional $1.6bn offering to further expand public participation.
“And then after that, we created another $1.6bn. The real purpose is for us to democratise wealth-making,” he said.
He emphasised that the company was open to further reducing its ownership stake in the refinery if demand from African investors continued to grow.
“This $1.6bn that we have, I can tell you for nothing that we will sell more. We will go to the regulator and ask that there is more demand; we want more Africans to own it.
“As we go along, we don’t mind, even if Dangote will end up having twenty or twenty-five per cent, we have nothing to hide,” he added.
Industry observers say the outcome of the legal dispute in Kenya could test investor confidence in large-scale infrastructure projects on the continent, particularly in sectors that require significant land acquisition and community engagement.
As the October 14 hearing approaches, stakeholders will be watching closely to see whether the dispute is resolved amicably or escalates into a prolonged legal battle that could delay one of Africa’s most ambitious refinery projects.
