- AfDB President Adesina cautioned the Nigerian government against criticizing Dangote and his refinery, arguing it would deter foreign investment
- Adesina refuted claims of Dangote’s monopoly and stressed the adverse implications of undermining such a significant investor in Nigeria
Akinwumi Adesina, President of the African Development Bank Group (AfDB), has cautioned the Nigerian government against criticizing Alhaji Aliko Dangote and his refinery. He argues that such actions would ultimately harm the nation by deterring foreign investment.
Adesina highlighted ongoing disputes between Dangote, Nigerian National Petroleum Company Limited (NNPCL), and petroleum regulatory authorities over alleged substandard diesel from Dangote Refinery. He expressed dismay at the controversy, warning that it negatively impacted Nigeria internationally.
In a statement by businessman Femi Otedola shared on X, Adesina refuted claims of Dangote’s monopoly in Nigeria’s manufacturing sector and stressed the adverse implications of undermining such a significant investor. The statement read:
“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 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. 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.
“…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 largest investor? Investing is tough. Pettiness is easy. Sadly, it signals that the price for sacrificing for Nigeria is to get sacrificed.”
Adesina’s comments underline the importance of supporting major investors like Dangote to foster a more conducive environment for economic growth and foreign investment in Nigeria.