Nigerian billionaire Aliko Dangote and Kenyan President William Ruto have officially begun construction of a $16 billion oil refinery in Lamu, Kenya. The project, set to process 700,000 barrels of crude oil daily, aims to replicate the scale of Dangote’s Nigerian refinery. The site was chosen after assessments of multiple locations in Kenya and Tanzania, with Lamu’s deep waters and available land proving advantageous.
The refinery is expected to create 60,000 jobs, boosting Kenya’s economy and energy independence. Dangote’s group has also proposed a Global Depositary Receipt (GDR) structure, allowing Kenyan investors to access the Nigerian refinery’s IPO through the Nairobi Securities Exchange. This initiative aims to deepen financial ties between Nigeria and Kenya.
The Nigerian Exchange Group and Nairobi Securities Exchange have been working to strengthen cross-border collaboration, with discussions on integrating markets and enhancing investment opportunities. The Lamu refinery represents a key step in regional economic integration.
The project highlights growing economic cooperation between Kenya and Nigeria, with both nations aiming to leverage infrastructure and investment to drive growth.
