The ongoing conflict between the Nigerian National Petroleum Corporation (NNPC) and Dangote Refinery is causing significant harm to Nigeria’s global reputation, according to Akinwumi Adesina, President of the African Development Bank. Adesina argues that this dispute is detrimental to Nigeria’s efforts to attract foreign investment and build partnerships necessary for rapid development.
Adesina recently criticized the negative comments directed at Dangote Refinery, calling it an unwarranted and counterproductive action that tarnishes Nigeria’s reputation. He stressed that criticizing Dangote is unnecessary and harmful to the country’s interests. Adesina expressed concerns that such behaviour could deter potential investors, sending a discouraging message about investing in Nigeria.
He also highlighted the significant challenges and costs associated with large-scale projects like the Dangote Refinery, emphasizing that only a few entities can undertake such ventures due to the high investment and risks involved.
The President of the African Development Bank emphasized that Nigeria’s long history of importing refined petroleum products has normalized an abnormal situation. “In a nation that has been 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,” Adesina noted.
He elaborated on the high costs and risks associated with manufacturing, particularly in Nigeria, where the business environment is challenging due to policy uncertainties and frequent reversals. Adesina criticized the common practice of simply importing goods as a solution to problems, arguing that it undermines local industries and investment efforts.
Adesina also addressed concerns about competition. He questioned whether Dangote Refineries are truly anti-competitive and challenged the evidence supporting such claims. “Competition is good for everyone. But is Dangote refineries anti-competitive? What is the evidence?” he asked. He argued that if other companies have not set up refineries despite the opportunities, it is not the fault of Dangote. He suggested that local refineries should be the standard rather than competing with imports.
In his statement, Adesina made a case for protecting and promoting local industries, especially large-scale projects like the Dangote Refinery. He argued that such projects are more than just about providing cheap products. They play a critical role in ensuring domestic supply security, driving competitive industries, creating jobs, reducing foreign exchange expenses, and strengthening the national currency.
“We cannot and must not frustrate, criticize, or kill local industries; talk less of one that is of this scale—a jewel of industrialisation in Nigeria,” Adesina said. He urged Nigerians to look beyond immediate costs and consider the broader economic benefits of supporting domestic industries.
