Unfair criticism against Dangote creating bad waves for Nigeria, says AfDB President Adesina |

The President of the African Development Bank (AfDB), Akinwunmi Adesina, has expressed serious concerns over the Dangote Refinery issue involving Nigerian government agencies, saying it is generating negative global perceptions of Nigeria.

Recall that the Director General of the Nigerian Midstream and Downstream Petroleum Authority, Farouk Ahmed, recently said that the diesel produced by the $20 billion Dangote Refinery is less than that imported into the country.

Farouk Ahmed also spoke about the alleged monopoly, stressing that Nigeria must rely on something other than the Dangote refinery for its fuel supply.

Reacting to the development on Monday, AfDB President, Akinwumi Adesina, said all the denigration of Dangote was unwarranted.

“It’s counterproductive. And it’s very bad for Nigeria.

“Who will want to come and invest in a country that denigrates and harms its own largest investor?”

According to Adesina, investing is difficult but pettiness is easy, adding that what is happening sends a signal that the price of sacrifice for Nigeria is to be sacrificed.

The AfDB chief said: “Competition is good for everyone. But are Dangote’s refineries anti-competitive? What is the evidence?”

He said monopolies often exist where barriers to entry or investment costs are high.

“How many individuals or companies can build railways? How many can build refineries of the magnitude of Dangote?

Adesina added that in a country that has been importing refined petroleum products for several decades, the abnormal has simply become quite normal.

“No smart investor would make a $19.5 billion investment and want it to be undermined by importers.

“Manufacturing is extremely expensive and risky. This is even more true in Nigeria, given the very difficult economic and business environment, the uncertainties and policy shifts, and where the self-defeating default mode of ‘just import’ is still so easily rationalised and invoked to solve any problem.”

He added that Dangote Refinery does not just deliver the cheapest product on the market.

“This is about ensuring security of domestic supply, stimulating (and yes, protecting) globally competitive industries, maximising backward and forward linkages in the local economy, creating jobs, reducing foreign exchange costs and strengthening the naira.”

Adesina said competition is good for everyone, but “is Dangote’s refinery anti-competitive? What is the evidence?”

“Did Dangote’s refineries prevent other companies from setting up their own? Why didn’t others do the same?

“How come they haven’t done it for several decades? Was it Dangote who held them back?

The AfDB President said Dangote’s refineries certainly cannot be expected to “compete” with petroleum product importers.

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“This is not competition. Let importers set up local refineries and compete by refining in Nigeria. This is fair and justified competition.”

“We cannot and must not undermine, denigrate or kill local industries, let alone an industry of this magnitude, a jewel of industrialization in Nigeria,” Adeshina said.

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