“Who undermines its own largest investor?” – Akinwunmi Adesina defends Dangote amid faceoff with FG
Akinwunmi Adesina, the President of the African Development Bank, has expressed his shock and concern over the ongoing drama surrounding Dangote Refineries.
Adesina believes the backlash and difficulties facing the Dangote Refineries at the moment will create harmful repercussions for Nigeria’s international image.
In a long post shared by Femi Otedola on X, Adesina highlighted the challenges in industries that require substantial capital investments, such as railways and large-scale refineries.
He emphasized the rarity of individuals or companies capable of undertaking such massive projects, pointing to Dangote Refineries as a prime example in a country long dependent on importing refined petroleum products.
“No prudent investor would inject $19.5 billion into a project only to have it threatened by importers,” Adesina said in his defence of the high-risk nature and costs associated with manufacturing, particularly in Nigeria’s volatile business environment characterized by policy instability.
On the allegations of monopoly levelled against Dangote
Addressing concerns of anti-competitiveness and monopoly, Adesina questioned the evidence against the Group, arguing that it has not prevented other companies from establishing refineries.
Competition is good for everyone. But are Dangote refineries anti-competitive? What is the evidence? he wrote.
He challenged critics to consider why no other entity has attempted similar projects over the decades, refuting claims that Africa’s richest man has monopolized the industry.
Adesina firmly stated that pitting Dangote Refineries against importers is not a fair measure of competition. Instead, he called for importers to invest in local refineries and compete by refining within Nigeria, which he deemed as fair and just competition.
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?
The benefits of supporting local industries include domestic supply security, encouraging globally competitive industries, maximizing economic linkages, job creation, reducing foreign exchange expenses, and strengthening the Naira.
Adesina condemned the disparagement as shortsighted and detrimental to Nigeria’s economic interests. “This negative portrayal is uncalled for and self-defeating. It tarnishes Nigeria’s reputation as an investment destination,” he warned, stressing that such attitudes could deter future investments.
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” Adesina concluded.
