The Manufacturers Association of Nigeria (MAN) has called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other regulatory bodies to stop undermining the Dangote Refinery and other local producers. This appeal comes in response to recent criticisms and disputes involving the refinery.
Dangote, Africa’s richest man, has been embroiled in a dispute with the 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.”
In a statement released by MAN’s Director-General on Wednesday, Segun Ajayi-Kadir, the association expressed concern over the negative impact of regulatory actions on local investments.
He said, “It is expected that agencies of government, that provide regulatory oversight functions should promote an enabling business environment for local investments to thrive.
“No regulatory agency should be seen to be casting a shadow over a homegrown investment like the Dangote Refinery.
“The allegations of poor quality, monopolistic tendencies and non-issuance of license have since been roundly debunked. There may then be the need to issue a clarification that absolves the Dangote Refinery of the negative perception generated by the news report.
“The Dangote Refinery, located in Lagos, the largest single-train refinery in the world, will play a significant role in reducing Nigeria’s dependence on imported petroleum products, reduce cost and energy poverty and significantly boost our energy sufficiency.
“This is also a company in which Nigeria and Nigerians are shareholders. We should
never encourage or promote a preference for imported products over local alternatives. This amounts to importing poverty and exporting prosperity.
“As you are aware, the manufacturing sector is beset with multifaceted challenges. They include the high cost of electricity, high cost of compliance with regulatory requirements, lack of access to financing, unfavourable foreign exchange and unfair competition from imported and smuggled products. It is therefore imperative that the Nigerian government takes proactive steps to address these binding constraints in order to improve the competitiveness of local industries and enhance their contribution to the GDP”.
The dispute has attracted the attention of various government bodies, including the Senate, the House of Representatives, and the Minister of Petroleum Resources, Heineken Lokpobiri.
The House Committee on Midstream and Downstream has launched an investigation into the dispute, while Lokpobiri has convened meetings involving Dangote, Ahmed, and Mele Kyari, Group CEO of the Nigerian National Petroleum Company Limited (NNPCL), to address and resolve the issues affecting the sector.
