Former Lagos State Governor Babatunde Fashola disclosed that his administration offered a discounted price for land allocated to the Dangote Group. This strategic move was aimed at securing the refinery project, which eventually became the Dangote Petroleum Refinery in the Lekki Free Zone.
Fashola made this revelation during his keynote address at the Chartered Institute of Directors (CIoD) Nigeria Women Directors’ Biennial Conference. The event, titled “From Presence to Power: Advancing Women’s Influence in the Boardroom,” took place earlier this week at the National Arts Theatre in Lagos.
Strategic Investment Decision
The decision to discount the land followed advice from Mrs. Olusola Oworu, who served as the Lagos State Commissioner for Commerce and Industry at the time. Oworu argued that attracting such a significant investment would yield greater long-term economic benefits for the state than adhering strictly to fixed land pricing.
Fashola recalled that negotiations stalled after the Dangote Group selected Lagos and a suitable site was identified, due to the high cost of land. Lagos operated a fixed-rate pricing system for land, which the Dangote Group found too expensive.
Mrs. Oworu advised the State Executive Council, stating, “Look, Governor, you have 16,000 hectares of land. The Chinese are in 3,000 hectares. We have barely built 200. Thirteen thousand is waiting for investors. You have now found an investor who wants to take 2,000 hectares and build a refinery of $19 billion and you are quibbling over the cost of the land. Offer the land at a discount. Once it comes in, others will follow. And then you can make money from your land.” Fashola noted that her intervention changed the course of deliberations.
He used this episode to emphasize that leadership should be judged by competence, preparation, and impact, rather than solely by gender, asserting that “Ineffectiveness is not a gender thing; it is a human thing.”
Broader Conference Insights
The CIoD conference also highlighted the need for organizations to move beyond mere representation of women on boards. Speakers urged a focus on empowering women with greater influence over strategic decision-making.
Mrs. Amina Oyagbola, CIoD Nigeria First Vice President, observed that despite an increase in women on corporate boards and in leadership roles, they remain underrepresented in key executive and board chair positions. She advocated for stronger mentorship and sponsorship programs to cultivate robust leadership pipelines for women.
Otunba Adetunji Oyebanji, CIoD Nigeria President and Chairman of the Governing Council, stressed that board appointments should prioritize competence, skills, and integrity. He noted that traditional leadership pathways have historically limited women's access to top positions, and increasing women's influence is crucial amidst economic uncertainty, technological disruption, and evolving stakeholder expectations.
Dangote Refinery's Journey and Valuation
The Dangote Group initially planned to establish the refinery in the Olokola Free Trade Zone, spanning Ogun and Ondo states. However, disagreements with the Ogun State Government under former Governor Ibikunle Amosun led to the project's relocation to the Lekki Free Zone in Lagos.
The refinery commenced production on January 12, 2024, boasting a nameplate refining capacity of 650,000 barrels of crude oil per day. This makes it Africa’s largest refinery and one of the world’s largest single-train refineries.
In February 2026, the company announced it had achieved its full designed processing capacity after optimizing its Crude Distillation Unit and Motor Spirit production block. The refinery is currently valued at $39.1 billion and is seeking to raise approximately $1 billion through a private placement, with indications of interest already exceeding $2 billion, according to an Information Memorandum seen by Nairametrics.
The Dangote Refinery stands as one of Nigeria’s largest private-sector investments, continuously expanding its operations and attracting fresh capital from investors.
