Fashola reveals how Lagos cut land price to keep Dangote Refinery project
By Aboki Forex —
Former Lagos State Governor Babatunde Fashola has disclosed that his administration deliberately reduced the price of land allocated to the Dangote Group to ensure the company built its multi-billion-dollar refinery in the state. The decision, taken during his tenure, has since proved to be one of Lagos' most strategic economic investments.
How Lagos nearly lost the refinery deal
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 Oworu's argument that changed the deal
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. She maintained 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 argued 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. The council eventually agreed to grant the concession, a move that ensured the refinery remained in Lagos instead of relocating elsewhere.
What the refinery means today
Today, the 650,000-barrel-per-day Dangote Petroleum Refinery located in the Lekki Free Zone is regarded as Africa's largest single-train refinery and one of the biggest globally. It commenced fuel production in 2024.
Fashola said the experience shows that competence and good leadership are more important than gender in making major decisions.
Meanwhile, the Dangote Refinery recently 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.
For the naira and Nigerian businesses, the refinery is expected to play a major role in reducing dependence on imported petroleum products, boosting exports of refined fuel and creating thousands of direct and indirect jobs. Industry stakeholders said the move could intensify competition, reduce fuel imports, and help lower petrol prices.