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Home » News » Court Rejects Lawsuit Demanding Disclosure of $100 Million Dangote Payment to Lagos Government

Court Rejects Lawsuit Demanding Disclosure of $100 Million Dangote Payment to Lagos Government

February 7, 2025
in News
Reading Time: 3 mins read

The Federal High Court sitting in Lagos, presided over by Justice A. Faji, has dismissed a suit seeking an order of mandamus to compel the Lagos State Government to release details of the expenditure of $100 million received from Alhaji Aliko Dangote.  

In delivering judgment, Justice Faji ruled that the Lagos State Government could not be compelled to disclose the requested information, as the law mandating such disclosure had not been domesticated in the state. 

The case involves a request for clarification on claims made by prominent business magnate Alhaji Dangote, who asserted that he paid $100 million to the Lagos State Government to acquire land for his refinery in the Ibeju-Lekki area of the state.

The application seeks to compel Governor Babajide Sanwo-Olu, the Attorney General, the Accountant General, the Permanent Secretary of the Lands Bureau, and the Lagos State Government to confirm the veracity of Dangote’s claim. 

Specifically, the court was urged to compel the state government to disclose whether Dangote’s assertion that he paid $100 million to the government was factual or erroneous.

The Applicants – De Renaissance Patriots Foundation and Ibeju-Lekki Peoples Forum – noted that should the application be successful, they would want the Lagos State Government to provide a comprehensive and detailed account of the transaction, addressing critical questions such as why there was no public statement issued regarding this significant financial transaction.

The lawsuit sought to uncover the truth surrounding Dangote’s claim and ensure transparency and accountability in the handling of public funds.

The application was filed by De Renaissance Patriots Foundation and Ibeju-Lekki Peoples Forum, joining Mr. Babajide Sanwo-Olu (Lagos State Governor), Attorney General of Lagos State, Accountant General of Lagos State, Permanent Secretary, Lands Bureau, Lagos State and Lagos State Government, as the 1st to 5th Respondents.

The motion, filed and registered by the court with Suit no FHC/L/CS/1603/2024 at 1:20pm on Friday, September 6, 2024, asked the court for an Order of Mandamus to be issued against the respondents to compel the Lagos State Government to release the information required by the applicants.

Meanwhile, the decision of the court has sparked concerns regarding transparency and accountability in governance, particularly in cases involving significant public funds.  

According to a statement signed by Lasisi Robert’s Assembly of Lagos Youths, the ruling has drawn criticism from stakeholders who argue that public policy and public interest should have been key considerations in the court’s decision. 

Observers contend that withholding such financial details undermines public confidence in governance and accountability.  

Residents of Ibeju-Lekki, where the funds were reportedly intended for development, continue to face significant infrastructural deficits. 

Many communities in the area lack stable electricity, quality educational institutions, and standard healthcare facilities. Critics argue that the absence of transparency in the management of such substantial funds exacerbates the socio-economic challenges faced by the local population.  

It said, “Legal and governance analysts have expressed concerns that this ruling may set a precedent for non-disclosure of critical financial transactions involving public institutions. 

“The refusal to grant the request for information under the Freedom of Information (FOI) Act, on the grounds of non-domestication, raises questions about the commitment of the Lagos State Government to transparency and accountability.  

“Citizens and civil society organizations have emphasized the importance of fiscal responsibility, urging the government to proactively disclose financial transactions that affect public welfare. The judgment, they argue, could erode public trust in governance and discourage civic engagement in demanding accountability.  

“The dismissal of the suit has further fueled public debate on the necessity of legal reforms to enhance transparency at the state level. 

“Observers stress the need for governance practices that prioritize the interests of citizens and ensure that public resources are effectively utilized for developmental purposes.”  

“As discussions on this matter continue, stakeholders advocate for stronger legal frameworks to prevent opaque financial dealings and reinforce accountability in government transactions,” it added. 

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