“We’re Ready for Them”: Dangote Reacts as Court Order Hits $16bn Refinery
- The Dangote Group says the groundbreaking for its planned $16 billion Lamu refinery will proceed despite a land dispute court order
- 133 residents claim long-standing rights to disputed land and are seeking recognition, compensation and resettlement
- Kenya’s President William Ruto is expected at the launch of the 700,000-barrel-per-day refinery, targeted for completion by 2030
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Dangote Group has vowed to push ahead with the launch of its $16 billion oil refinery in Kenya despite a court order restricting activities on disputed land earmarked for the massive project.
The Nigerian conglomerate said the groundbreaking ceremony for the proposed 700,000-barrel-per-day refinery in Lamu would proceed as scheduled on Wednesday, September 30.
Source: Getty Images
The Malindi Environment and Land Court had ordered parties in a land dispute surrounding the project to maintain the status quo on the affected property until October 14, when the matter is expected to return to court.
However, the court declined to stop the groundbreaking ceremony itself.
Dangote says groundbreaking will go ahead
Reacting to the development, Dangote Group maintained that the ruling had not derailed the official launch of the multibillion-dollar project.
“The court has not halted the groundbreaking ceremony of the refinery at this stage,” the company said.
The group acknowledged, however, that some activities at the project site could be affected by the order preventing interference with the disputed land pending further proceedings.
Aliko Dangote, president of the Dangote Group, said the company was prepared to defend its interests through the legal process, drawing parallels with an earlier dispute involving one of its investments in Senegal.
Dangote said the Senegal matter went through the courts before eventually reaching the Supreme Court, where the company prevailed.
“Anyone who wants to cause trouble, we’re ready for them,” Dangote said.
133 residents challenge refinery project
At the centre of the dispute is a parcel identified as LR No. 13061 in the Hindi/Manda Magogoni area of Lamu County.
The case was brought by 133 Chandavai residents who claim interests in the land and say their families have occupied and cultivated portions of it for generations. They are seeking recognition of their rights as well as compensation and resettlement in connection with the project, according to a report by Reuters.
Justice Jane Onyango ordered that the existing situation on the disputed land be preserved until October 14.
The residents had sought broader orders to halt further development, including the groundbreaking ceremony, but the court did not grant their request to stop Wednesday’s launch.
Source: Getty Images
Ruto backs Dangote’s $16bn refinery
Kenyan President William Ruto is expected to join Dangote for the groundbreaking ceremony, underlining the government’s backing for the refinery.
Preparations were underway in Lamu on Wednesday morning ahead of the ceremony, with senior Kenyan officials arriving at the venue.
The planned refinery will have capacity to process about 700,000 barrels of crude oil per day and is designed to serve Kenya and the wider East African market.
Reuters reported Wednesday that the $16 billion facility is targeted for completion by 2030 and forms a major part of Dangote’s wider African expansion strategy. Regional governments are also being offered stakes in the project.
Despite the court battle, Dangote’s message is clear: the legal dispute may complicate activities on the contested land, but the company is pressing ahead with the refinery’s official launch.
Dangote's Kenyan refinery to exceed Nigerian facility
Legit.ng earlier reported that Aliko Dangote, president and chief executive officer of Dangote Group, has said the company’s planned refinery in Kenya will surpass its Lagos facility in both size and processing capability.
Dangote disclosed this while hosting Kenyan President William Ruto on a tour of the Dangote Petroleum Refinery in Lagos.
Source: Legit.ng
