Lagos residents sue Sanwo-Olu over $100M payment for Dangote’s refinery land

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The Ibeju-Lekki People’s Forum, in collaboration with the De Renaissance Patriots Foundation, has initiated legal action against the Lagos State Government.

The lawsuit, filed in the Federal High Court in Lagos, demands transparency regarding the alleged $100 million paid by Aliko Dangote for the land on which his refinery is situated.

In July, Dangote asserted that his company had paid Lagos State $100 million for the 7,000 acres used for the refinery. This claim counters previous assertions that the land was provided at no cost.

The refinery, with a capacity of 650,000 barrels per day and ranked as the largest single-train and seventh-largest refinery globally, is located in the Ibeju-Lekki region.

The plaintiffs are asking the court to compel the Lagos State Government to disclose the details of this payment. Named as respondents in the case are Lagos State Governor Babajide Sanwo-Olu, the Lagos State Attorney-General, the Lagos State Accountant-General, and the Permanent Secretary of the Lands Bureau.

Yakubu Eleto, the lead counsel for the plaintiffs, reported that around 48 communities were displaced due to the refinery’s construction. Eleto highlighted that these communities were assured of compensation by a former governor, Babatunde Fashola, who had previously stated that the land was a gift to Dangote.

Eleto noted that despite Dangote’s claim of a $100 million payment, the affected communities still lack essential services such as electricity, clean water, good roads, and education. The communities also face significant environmental challenges.

The plaintiffs have alleged discrepancies in the reported payment, citing that only $1.4 million was recorded in the state’s account related to the transaction, with the remaining $98.6 million unaccounted for. They have struggled to obtain comprehensive documentation of the transaction from the state government, despite numerous requests.

The case continues as the plaintiffs seek clarity on the financial details and accountability regarding the land acquisition.

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