Nigerian billionaire Aliko Dangote has expressed confidence that the planned Ksh.2 trillion oil refinery in Lamu, Kenya will go ahead despite a court ruling that threatens to stop its construction. Speaking at an investor event in Nairobi on September 29, Dangote dismissed the court order, saying such legal hurdles are common in Africa. He added that the project will move forward, with activities at the site possibly affected by the ruling.
The court ruling was issued by the Malindi Environment and Land Court, which ordered that the status quo on the land where the refinery will be built should be maintained until a hearing on October 14. The lawsuit was filed by 133 residents of Chandavai, an area in Lamu County, who claim the land is their ancestral heritage and that their families have lived and farmed there for generations.
Dangote's Lamu refinery aims to replicate the success of his 700,000 bpd plant near Lagos, Nigeria's commercial capital. The Lagos plant helped turn Nigeria from a major fuel importer into a growing exporter. However, unlike Nigeria, Kenya currently has no commercial oil output. Dangote expects the Lamu refinery to cost $15 billion to $16 billion and hopes to complete it by 2030.
The project has received praise from President William Ruto, who toured the Dangote Refinery in Lekki, Lagos State, Nigeria on September 25. Ruto said the project is expected to improve fuel reliability and security while supporting industrialisation and creating about 60,000 jobs. He also noted that the power plant in Lamu will produce about 1000 megawatts, with 500 megawatts to be sold to the Kenyan government.
Dangote Group said in a statement that the court ruling had not halted the groundbreaking ceremony slated for September 30, but activities at the site may be affected by the ruling. Both parties are required not to carry out activities until the case is heard on October 14. The ceremony is expected to proceed as planned.
The Lamu refinery project has been touted as a major achievement for African governments, investors, and financial institutions working together. Dangote's remarks come hours after the court ruling, with the businessman expressing readiness to address any concerns. He said that anyone who wants to cause trouble is welcome, as the project will move forward.
The project's impact on the region and Kenya's economy remains to be seen. With a potential cost of $15 billion to $16 billion, the refinery is expected to have a significant impact on Kenya's industrialisation and job creation. Key stakeholders will be watching closely as the project progresses, with a hearing on October 14 set to determine the project's future.
Key points
- Aliko Dangote dismisses court order halting Lamu oil refinery construction as 'normal in Africa'
- The Lamu refinery project aims to create 60,000 jobs and improve fuel reliability
- The project is expected to cost $15 billion to $16 billion and be completed by 2030
