The President of the African Development Bank (AfDB), Akinwunmi Adesina, has cautioned the Bola Tinubu administration against adopting a hostile stance towards Dangote Refinery, following the recent spat between oil regulating agencies and the chairman of the oil plant Aliko Dangote.
Adesina said that the government should focus on fostering an environment conducive to the refinery’s success, rather than engaging in actions that could undermine it.
In a statement on Tuesday, the Afreximbank president highlighted the significance of Dangote’s investment, noting that few entities could match the $19.5 billion commitment made by Aliko Dangote in a country with considerable policy uncertainties. He pointed out that investing in Nigeria’s current economic climate is challenging, making it essential for the government to support such substantial investments.
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“Investing is tough, considering that very few entities, if any at all, could afford to invest $19.5 billion, as Dangote had done, in a country where the economic climate was fraught with policy uncertainties,” Adesina said.
He further noted that while “pettiness is easy,” the focus should be on creating an enabling environment for such investments to thrive.
The caution from Adesina comes on the heels of allegations from the head of Nigeria’s oil regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed. Ahmed accused Dangote Refinery of attempting to monopolize the supply of refined crude products to the nation’s oil marketers.
Adesina countered these allegations, arguing that few entities have the financial capability to invest $19.5 billion in building a refinery of Dangote’s scale.
“How many individuals or companies can do railways? How many can do refineries of the scale of Dangote Refinery?” Adesina asked.
He asserted that wanting to be the sole fuel supplier after such an investment does not equate to creating a monopoly. According to him, there is no evidence to suggest that Dangote Refinery has acted anti-competitively or has prevented other companies from establishing refineries.
“No smart investor would make a $19.5 billion investment and want it to be undermined by importers,” Adesina said. He added, “Let the importers set up local refineries and compete by refining in Nigeria. That is fair and justified competition.”
Dangote has alleged that people in the Nigerian National Petroleum Company Limited (NNPCL) and some traders in the oil industry set up a blending plant in Europe, hinting at vested interests behind the recent attacks on his refinery.
Although the CEO of the NNPCL, Mele Kyari, has denied the claim, saying he neither has nor knows anyone in the state-owned company, who owns a blending plant in Europe, the allegation has been fully bought by many.
Adesina warned that the government’s hostile body language towards Dangote Refinery sends the wrong signal to potential foreign investors. He said disparaging Dangote, who is one of Nigeria’s largest investors, could deter other investors from committing to the country.
“This whole disparaging of Dangote is uncalled for. It is self-defeating. And it is very bad for Nigeria. Who will want to invest in a country that disparages and undermines its own largest investor?” he noted.
Growing Support from Business Leaders
Several prominent Nigerians, including former Vice President Atiku Abubakar, former Anambra State governor, Peter Obi, and business mogul Femi Otedola, have voiced their support for Dangote. Otedola praised Dangote as a visionary who has made significant investments in Nigeria.
He highlighted Dangote’s achievements, including building the largest single-train refinery in the world, the second-largest sugar refinery, and the largest cement factory, among other substantial industrial projects.
“My brother, the Visionary, has built the largest single train refinery in the world, not in Kano, but in Lagos State. He is the owner of the second-largest sugar refinery in the world, also in Lagos State, and the largest cement factory in the world, not in Kano, but in Kogi State,” Otedola said.
“Additionally, he has established one of the second-largest fertilizer plants in the world, soon to surpass the biggest one in Qatar, also in Lagos State. Furthermore, he has built a fertilizer plant in Lagos that already exports globally. Aliko Dangote is a titan that God created specially for mankind,” he continued.
Among other things, Otedola noted Dangote’s role as the largest private sector employer in Nigeria and a significant taxpayer. He also noted that Dangote Group’s contributions extend beyond industrial facilities to critical infrastructure projects, such as major roads in Lagos and Kogi states.
“His contributions extend beyond industrial facilities to critical infrastructure, having built major roads such as the Apapa Oshodi-Owonrosoki Express Road, Wharf Road, and the Obajana-Kabba Road,” he recounted.
Otedola advised the federal government to emulate other countries by supporting local industries like the Dangote Group for the country to thrive.
“This whole disparaging of Dangote is uncalled for. It is self-defeating. And it is very bad for Nigeria. Who will want to invest in a country that disparages and undermines its own largest investor?” Adesina stated.