Fashola Opens Up on Land Deal Decision That Secured Dangote Refinery Project for Lagos
- Babatunde Fashola said Lagos State reduced the price of land to convince the Dangote Group to build its refinery in the state
- He said the decision was made after former Commissioner Olusola Oworu argued that the refinery would attract more investors
- Fashola said the experience shows that competence and good leadership are more important than gender in making major decisions
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Former Lagos State Governor, Babatunde Fashola (SAN) has disclosed that the Lagos State Government deliberately reduced the price of land allocated to the Dangote Group to ensure the company's multi-billion-dollar refinery project was established in the state.
Fashola said the decision, taken during his administration, has since proved to be one of Lagos' most strategic economic investments, laying the foundation for what is now the 650,000-barrel-per-day Dangote Petroleum Refinery located in the Lekki Free Zone.
Source: UGC
The refinery, which commenced fuel production in 2024, is regarded as Africa's largest single-train refinery and one of the biggest globally.
Speaking at the Chartered Institute of Directors (CIoD) Nigeria Women Directors' Biennial Conference in Lagos, where he delivered a keynote address titled "From Presence to Power: Advancing Women's Influence in the Boardroom," Fashola recounted how the state nearly lost the landmark investment over disagreements on land pricing.
According to him, negotiations between the Lagos State Government and the Dangote Group stalled after the company considered the government's asking price for the land too expensive. At the time, Lagos operated a fixed pricing policy for government land, leaving little room for concessions.
Commissioner's intervention changed negotiations
Fashola credited the breakthrough to the then Commissioner for Commerce and Industry, Mrs. Olusola Oworu, who urged the State Executive Council to prioritise the long-term economic gains of hosting the refinery over the immediate revenue expected from the land sale.
He recalled that Oworu argued the state still had thousands of hectares of undeveloped land within the Lekki Free Zone and that attracting an investor willing to commit nearly $19 billion to build a refinery would unlock far greater economic benefits than insisting on the full market value of the land.
According to Fashola, she maintained that once such a large-scale investment materialised, it would attract additional local and foreign investors, stimulate industrial activities and significantly increase the value of surrounding properties and available land in the zone.
Source: Getty Images
Fashola explained that the council eventually agreed to grant the concession, a move that ensured the refinery remained in Lagos instead of relocating elsewhere.
Today, the Dangote Refinery is expected to play a major role in Nigeria's energy sector by reducing dependence on imported petroleum products, boosting exports of refined fuel and creating thousands of direct and indirect jobs.
Dangote Refinery opens petrol sales to marketers
Meanwhile, Legit.ng earlier reported that Dangote Refinery opened petrol sales to all licensed marketers, ending its consortium marketing arrangement.
The refinery also reduced its ex-gantry PMS price and aligned its coastal loading price at the same rate.
Industry stakeholders said the move could intensify competition, reduce fuel imports, and help lower petrol prices.
Source: Legit.ng
