President of the African Development Bank, Akinwunmi Adesina, has expressed concern over the recent criticism of Aliko Dangote and his business practices.
Dangote, Africa’s richest man, has been embroiled in a squabble with the Nigerian National Petroleum Corporation Limited (NNPCL) and other oil regulators.
Reports circulating online, including statements from Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), suggested that local refineries, including the Dangote refinery, were producing inferior products compared to imports.
The company’s spokesperson, Anthony Chiejina, later labelled the reports of producing high-sulfur diesel as “mischievous and aimed at tarnishing our reputation.”
However, Adesina believes that the public fight is damaging Nigeria’s reputation worldwide.
Adesina’s take on the subject was published on X.com by Nigerian billionaire, Femi Otedola.
He said, “This whole disparaging of Dangote is uncalled for. It is self-defeating. And it is very bad for Nigeria.
“Who will want to come and invest in a country that disparages and undermines its own largest investor?
“Investing is tough. Pettiness is easy. It sadly sends a signal that the price for sacrificing for Nigeria is to get sacrificed.”
Adesina explained that monopolies often happen in industries where starting a business requires a lot of money, like railways or large refineries.
He questioned how many companies or individuals can afford to build something as big as Dangote Refineries, especially in a country like Nigeria that has been importing refined petroleum products for many years.
He said, “Monopoly often exists where there are high barriers to entry or high capital costs.
“How many individuals or companies can do railways? How many can do refineries of the scale of Dangote Refineries?
“In a nation that has been importing refined petroleum products for several decades, the abnormal simply became very normal.
“No smart investor would make a $19.5 billion investment and want it to be undermined by importers. To manufacture is extremely expensive and risky.”
He noted that Nigeria has gotten used to importing petroleum products, which should not be normal.
He said, “This is even more so in Nigeria, given the very challenging business and economic environment, fraught with policy uncertainties and policy reversals, and where the self-defeating default mode of “simply import it” is always so easily rationalized and chorused to solve any problem.
“Competition is good for everyone. But are Dangote refineries anti-competitive? What is the evidence?
“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.
“We cannot and must not undermine, disparage or kill local industries, talk less of one that is of this scale — a jewel of industrialisation in Nigeria.”
Manufacturing in Nigeria is particularly expensive and risky because of uncertain policies and a challenging economic environment.
Adesina defended Dangote against accusations of being anti-competitive.
He asked for evidence that Dangote Refineries have stopped other companies from building their own refineries.
“Why haven’t other companies set up refineries for decades? Was it Dangote that held them back?” he asked.
He emphasised that Dangote Refineries cannot be expected to compete with importers of petroleum products because that is not fair competition.
Instead, he suggested that importers should build their own refineries in Nigeria.
Adesina stressed the importance of supporting local industries like Dangote Refineries, which he called a “jewel of industrialisation” in Nigeria.
He said it’s about more than just offering the cheapest products; it’s also about ensuring a stable local supply, creating jobs, reducing foreign exchange expenses, and strengthening the Nigerian Naira.
He warned that criticizing Dangote sends a bad message to potential investors, making Nigeria look like a country that does not support its biggest investors.
“Investing is tough. Pettiness is easy,” Adesina said. He concluded that such negativity is self-defeating and bad for Nigeria’s future.
The Dangote Group, founded by Aliko Dangote, has interests in cement, sugar, and petroleum.
Dangote is Africa’s richest man, and analysts say his investments are crucial for Nigeria’s economic growth.
However, his dominance in various sectors has sparked debates about monopolistic practices and the need for more competition.
