By Milcah Tanimu
Akinwumi Adesina, President of the African Development Bank Group, has expressed concern over the issues surrounding Dangote Refinery, suggesting that Nigeria is undermining its local investors. Adesina dismissed allegations of monopoly against Aliko Dangote, President of Dangote Group, as unsubstantiated.
Adesina stressed the importance of supporting local investors to encourage investment in Nigeria. He described the controversy surrounding Dangote as damaging to Nigeria’s global reputation. In a statement shared by Femi Otedola on his X handle, Adesina advised those importing refined fuel into Nigeria to consider building their own refineries, similar to Dangote.
He argued that Dangote should only face accusations of monopoly if he actively obstructed other investors from building refineries in the country, rather than competing against fuel importers. He highlighted the challenging business environment in Nigeria, marked by high entry barriers and significant capital costs, which often lead to monopolistic scenarios.
Adesina pointed out the risks and expenses involved in manufacturing, particularly in Nigeria’s uncertain economic landscape. He emphasized that Dangote’s significant $19.5 billion investment should not be undermined by importers. He questioned the evidence of Dangote Refineries being anti-competitive, noting that other companies had not established refineries for decades.
He further stated that true competition would involve importers setting up local refineries and competing within Nigeria, rather than simply importing petroleum products. Adesina warned against undermining local industries and highlighted the broader benefits of domestic production, including job creation, economic stability, and reduced foreign exchange expenses.
Adesina concluded by criticizing the disparagement of Dangote as detrimental to Nigeria’s investment climate. He emphasized the difficulty of investing and warned that undermining the country’s largest investor sends a negative signal to potential investors.
