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Dangote Refinery: Lagos Govt Keeps Mum On Dangote’s  Claim Of $100m Payment For Acquired Land

… Lawyers Weigh In

Africa’s richest man and President of Dangote Group, Aliko Dangote, recently claimed that his company paid the Lagos State Government $100m for the land where his refinery is sited.

The 650,000 barrels per day (bpd) refinery which is the largest single train and the 7th biggest refinery in the world, is located in Ibeju-Lekki area of Lagos.

“In the refinery, we did not, and I repeat, we did not collect one single incentive from the Federal Government of Nigeria or even Lagos State. Yes, the Lagos State gave us a good deal but we paid $100m for the land. It wasn’t a free land; we paid for it,” the business tycoon said during a visit by the leadership of the Federal House of Representives, led by Speaker Tajudeen Abbas and Deputy Speaker Benjamin Kalu to the refinery.

Dangote’s revelation has drawn the attention of Lagos natives, who claim that no compensation has been paid to owners of the land.

The natives under the aegis of De Renaissance Patriots Foundation, a Lagos State socio-cultural organisation, have written to Governor Babajide Sanwo- Olu, demanding clarification from the governor on the payment of the alleged $100m.

According to De Renaissance Patriots Foundation, at least 7,000 acres of land was taken from natives, adding that communities in Ibeju-Lekki were yet to be compensated.

In a letter dated July 29, 2024 and jointly signed by its President, Prince Adelani Adeniji-Adele, and Secretary General, Yomi Tokosi, the group stated that it was bewildered on why the notice of the purchase was not brought to the attention of government and how the money was expended without the members of the public being carried along or benefitting from it particularly the host communities.

“Alhaji Aliko Dangote on the 21st day of July, 2024 claimed in one of his broadcasts that he purchased the about 7000 acres of land he used for his refinery from Lagos State Government and that he purchased the land for 100,000,000:00 (One Hundred Million) USD,” the group said.

“As at press time, communities in Ibeju- Lekki were not known to have been paid compensation or provided with basic social amenities from the alleged 100,000,000:00USD (One Hundred Million United States Dollars) as claimed by Dangote.

“On the basis of the foregoing, we hereby demand information of the allegation and detailed information on how the money was expended and the account that was used to receive the money.

“Sir, Section 4 (a) of the Freedom of Information Act, 2011 provides that; Where information is applied for under this Act, the public institution to which the application is made shall, subject to sections 6, 7, and 8 of this Act within (7) days after the application is received make the information available to the Applicant.

“Section 7 of the Freedom of Information Act, 2011 provides as follows; (1) Where the government or public institution fails to give access to a record or information applied for under this Act, or a part thereof, the institution shall state in the notice given to the Applicant the grounds for the refusal, the specific provision of this Act that it relates to and that the applicant has a right to challenge the decision refusing access and have it reviewed by a court.

“(4) Where the government or public institution fails to give access to information or record applied for under this Act or part thereof within the time set out in this Act, the institution shall for the purposes of this Act be deemed to have refused to give access.”

The group threatened to drag  the Lagos State Government to the Economic and Financial Crimes Commission (EFCC) or seek  an Order of Mandamus in court against the government if details of the alleged transaction is not provided within seven days.

Lagos Govt Keeps Mum

It has been more than three weeks since Dangote made the claim of the payment of $100m for the land acquisition for his refinery.  However, the Lagos State Government is yet to make any public statement either denying or acknowledging what the businessman said.

When contacted by NewsNGR for comment, the Commissioner for Information and Strategy, Gbenga Omotoso, declined comment.

The Special Adviser on Media and Publicity to the governor, Gboyega Akosile, also did not respond to calls and message sent to him.

Efforts by NewsNGR to get further clarification from the Dangote Group proved abortive as the Group Chief Branding and Communications Officer, Anthony Chiejina, did not pick his call or respond to a text message sent to him.

In August last year, a civil society organisation, Corporate Accountability & Public Participation Africa (CAPPA), held a dialogue with people from the impacted communities. At the event, communities complained of neglect and non-compensation for acquired land.

To make way for the project, thousands of people from the Ilekuru, Idasho, Okesegun, Okeiyanta and Magbonsegun communities were evicted from their ancestral lands by state authorities. The livelihood of some of these people have also been impacted.

“I have three kids, and I can’t send them to a good school. I am struggling to provide food and shelter for them. Look around the community and see how impoverished the people look. Does this look like a community hosting a big refinery?” Walid Sheriff, who lives in Idasho, TOLD (link 1) The Guardian.

 “I was doing well as a fisherman. Now, I have to beg around for a job. The government should hear our voices and help us. We need help.”

Lawyers Weigh In

A public interest and human rights lawyer, Inibehe Effiong,  explained that before  the government can take  a private property, adequate compensation must be paid. He noted that property of citizens can only be acquired by the government for public purpose or overriding public interest, citing cases, including that of late military Head of State, Gen. Sani Abacha.

“The power of compulsory acquisition under the Land Use Act of 1978 and under the constitution – section 43 and 44 – must be either for public purpose or overriding public interest. Those are the grounds recognisable by the law,” Effiong told THE WHISTLER.

“By law, if you look at the constitutional provision I’ve cited, payment of adequate compensation is a condition precedent to compulsory acquisition of property.”

The human rights lawyer stated that the Supreme Court has decided in plethora of cases that the government cannot take land or acquire the property of a person and give it to a private interest or company.

Effiong highlighted that the owners of the land where Dangote Refinery is sited can initiate a legal action if they were not adequately compensated.

“So, if the owners of the land were not paid adequate compensation, that acquisition is unconstitutional. And maybe set aside on that basis (by a court). They’re entitled to adequate compensation,” he said.

“If they were not paid compensation, that’s actionable. Both Dangote Refinery and the Lagos State Government may be sued by the affected persons or communities to seek redress in court.”

Another lawyer, Marshal Abubakar, explained that under the Land Use Act and the constitution, every land in Nigeria is held in trust for Nigerians by the state governments.

He stated that a land can be appropriated by a state government, but it must be on the ground of public good or purpose, adding that even at that, compensation must be paid.

“Under the Land Use Act and the Constitution of Nigeria – Section 42 – every land in Nigeria is held in trust for Nigerians by the government,” he said.

“Every land in Nigeria can be taken over by the government, but there’s a caveat: such land, adequate compensation must be paid.”

Citing the Land Use Act and the constitution, he said: “The state government has no right to appropriate or reappropriate the land of locus, where local inhabitants reside without first, recourse to them, without secondly, compensation paid to them, and thirdly, without their knowledge and prior permission.”

He echoed the same view with Effiong, stating that the owners of the land can approach the court to seek redress.

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