Former Lagos State Governor Babatunde Fashola (SAN) has revealed that his administration deliberately lowered the price of land allocated to the Dangote Group to ensure the company's multi-billion-dollar refinery project was established in Lagos. Speaking at the Chartered Institute of Directors (CIoD) Nigeria Women Directors' Biennial Conference, Fashola explained that the decision, taken during his tenure, has since proven to be one of Lagos' most strategic economic investments.
Strategic Land Concession Secured Africa's Largest Refinery
Fashola disclosed that the Lagos State Government reduced the land price to convince the Dangote Group to build its refinery in the state. The 650,000-barrel-per-day Dangote Petroleum Refinery, located in the Lekki Free Zone, commenced fuel production in 2024 and is regarded as Africa's largest single-train refinery and one of the biggest globally.
According to Fashola, 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 Olusola Oworu'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.
Council Agreed to Grant Concession
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.
Fashola also noted that the experience shows that competence and good leadership are more important than gender in making major decisions, referencing Oworu's pivotal role in the deal.
