“Has Dangote refineries prevented any other company from setting up refineries? Why have others not done so? How come they have not done so for several decades? Was it Dangote that held them back?…But Dangote refineries surely cannot be asked to ‘compete’ with importers of petroleum products. That is not competition. Let the importers set up local refineries and compete by refining in Nigeria. That is fair and justified competition.” The president of the African Development Bank Group (AfDB), Akinwumi Adesina said.
“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.
I agree 100% from my little reading of AO Lawal economics textbook in secondary school. Yes, the regulator cannot say a local factory is afraid of competition against importers. An importer is not a competitor but a free-rider.
Nigeria must be redesigned to give the local producers and manufacturers opportunities to win. That is all we are asking for this economy.
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AfDB President Adesina, Femi Otedola, Ask Nigeria to Allow Dangote Refinery to Flourish
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