Since yesterday many business leaders have been mobilising support for President of Dangote Group and Africa’s richest person, Alhaji Aliko Dangote, in the recent disagreements between the management of Dangote refinery and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Their call was majorly to government agencies in the petroleum sector to support the growth of the $19 billion oil refinery in Lagos, rather than attempting to tear it down.
One of the first prominent Nigerians who added his voice was Akinwumi Adesina who is the AfDB President.
He emphasised the significant investment made by Dangote, stating, “No smart investor would make a $19.5 billion investment and want it to be undermined by importers.”
He highlighted manufacturing challenges in Nigeria, describing the business environment as fraught with policy uncertainties and reversals.
Addressing concerns about anti-competitive practices, Adesina said, “Competition is good for everyone. But is Dangote refinery 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.”
Adesina stressed the broader economic implications of the refinery, stating, “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. It is more than simply delivering the cheapest product to the market.
“It is about domestic supply security, driving (and yes, protecting) globally competitive industries, maximising forward and backward linkages in the local economy, job creation, reducing forex expenses and shoring up the Naira. We must not be myopic.
“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.”
Femi Otedola, a Nigerian Billionaire threw his support behind his friend Dangote amid the company’s dispute with the downstream oil regulator.
In a series of posts on X on Tuesday, Otedola said Dangote had built “the largest single train refinery in the world, the second-largest sugar refinery in the world,” emphasising that he (Dangote) remains the highest taxpayer in Nigeria.
Otedola wrote, “My brother, the visionary, has built the largest single train refinery in the world, not in Kano, but in Lagos State. He is the owner of the second-largest sugar refinery in the world, also in Lagos State, and the largest cement factory in the world, not in Kano, but in Kogi State.
“Additionally, he has established the second-largest fertiliser plants in the world, soon to surpass the biggest one in Qatar, also in Lagos State. Furthermore, he has built a fertiliser plant in Lagos that already exports globally. Aliko Dangote is a titan that God created especially for mankind.
“Aliko Dangote is also the largest private sector employer of labour in the country, and his companies are among the largest taxpayers. The Dangote Group often pays more in taxes than the top banks combined
“If not for him, we would still be importing cement. His contributions extend beyond industrial facilities to critical infrastructure, having built major roads, such as the Apapa Oshodi-Oworonsoki Express Road, Wharf Road, and the Obajana-Kabba Road.”
Otedola added, “Countries in the nascent stages of industrialisation require visionary leaders. This is why it’s no surprise that the United States was built by the vision and tenacity of a few remarkable individuals, Cornelius Vanderbilt, John D. Rockefeller, Andrew Carnegie, J.P. Morgan, and Henry Ford – The Men Who Built America’s industrial landscape.
“These men left the world without these assets but left behind a legacy that has kept their country thriving generation after generation. Their contributions were immortalised not in the material wealth they amassed but in the enduring institutions and industries they established.
“These visionaries were also supported by their government, which recognised the importance of fostering local champions. Similarly, today’s tech giants, like Microsoft and Tesla, received substantial support from the US government.”
Otedola shared a bit of history. He mentioned that in January 2010, the US Department of Energy issued a $465 million loan to Tesla Motors to produce specially designed, all-electric plug-in vehicles, and to develop a manufacturing facility in Fremont, California, to produce battery packs, electric motors, and other powertrain components for powering these innovative vehicles.
In a statement shared by businessman Femi Otedola on Tuesday via X, Adesina expressed his shock at the controversy surrounding Dangote’s operations, warning that it is “creating bad waves for Nigeria globally.”
According to Otedola’s post, Adesina argued that monopolies often arise in industries with high entry barriers or capital costs, citing railways and large-scale refineries as examples.
He was quoted as saying, “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.”
