Obasanjo says Lafarge opposed Dangote’s African cement expansion

Former Nigerian president Olusegun Obasanjo has alleged that Lafarge placed obstacles in the way of Aliko Dangote’s expansion into cement production across Africa. Obasanjo made the claim in Nairobi, Kenya, while speaking at a groundbreaking ceremony for a $16bn oil refinery project in Lamu. The event formed part of activities linked to the initial public offering of Dangote Petroleum Refinery and Petrochemicals FZE.

He said Lafarge opposed Dangote’s plans because it wanted to protect its position in Africa’s cement market. Obasanjo described the experience in Senegal as particularly difficult for the Nigerian businessman. According to Obasanjo, local residents challenged Dangote’s ownership of the land on which a five-million-tonne cement plant had been built.

He said the challenge was allegedly instigated by Lafarge, and that Dangote won the court case but still had to pay $12m before operating the factory. The claims were presented by Obasanjo as an example of the barriers facing African businesses expanding across the continent. The source material does not include a response from Lafarge to the allegations.

Obasanjo also recalled introducing a Nigerian policy in 2003 that linked cement import licences to plans for domestic production. He said the policy encouraged Dangote to establish large plants in Nigeria before expanding into Tanzania, Ethiopia and Senegal. He connected that experience to Dangote’s refinery investment, saying cement production had provided the confidence and inspiration for the later project.

Dangote’s refinery share sale is offering 4.1bn shares at N525 each to raise funds for expansion, according to the report. A planned refinery in Lamu is expected to serve East African energy demand.