Fashola: Lagos Deliberately Discounted Land Price to Attract Dangote Refinery Project

Former Lagos State Governor Babatunde Fashola revealed that the state government intentionally lowered land prices to secure the multi-billion-dollar Dangote Refinery project. This strategic move, he explained, was crucial in ensuring the massive petroleum refinery remained within Lagos.

Fashola recounted that negotiations with the Dangote Group had stalled due to the company finding the state's initial asking price for the land too high. Lagos typically operated a fixed pricing system, making concessions difficult. However, then-Commissioner for Commerce and Industry, Mrs. Olusola Oworu, urged the government to look beyond immediate revenue, arguing that attracting a transformative investment like the refinery was far more valuable.

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That was a thinking decision. The whole council then looked at me, and I surrendered.

During a State Executive Council meeting, Oworu proposed offering a concession to Dangote, who was prepared to invest approximately $19 billion. She argued that initiating such a landmark project would stimulate further investment and significantly increase the value of the remaining undeveloped land in the Lekki Free Zone. Fashola recalled that this argument swayed the council, leading him to "surrender" his initial stance on fixed pricing.

Fashola presented this episode as a testament to effective leadership, emphasizing competence and strategic thinking over gender. He also cited it as an illustration of the significant contributions women can make to critical decision-making processes when given the opportunity. The experience, he noted, underscored the importance of competence, preparation, and impact in leadership roles.

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Ineffectiveness is not a gender thing; it is a human thing.