Akinwunmi Adesina, the president of the African Development Bank (AfDB), has come to the defense of Aliko Dangote, chairman of Dangote Industries Limited, amidst accusations of monopoly in Nigeria’s oil sector. Adesina’s remarks were made in a post shared on X (formerly Twitter) by businessman Femi Otedola.
On July 20, Dangote announced that his company would cease plans to invest in Nigeria’s steel industry to avoid being labeled a monopoly. This decision followed claims from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that local refineries, including Dangote’s, were producing substandard petroleum products. In response to these allegations, Dangote suggested that some NNPC personnel and oil traders were operating a blending plant in Malta, which he argued was undermining local production.
Adesina criticized the notion that Dangote’s operations constitute a monopoly, stating, “Dangote refineries surely cannot be asked to compete with importers.” He highlighted the significant barriers to entry in the refinery sector, questioning how many individuals or companies could afford to build large-scale refineries like Dangote’s. He pointed out that Nigeria has been reliant on imported refined petroleum products for decades, making the situation abnormal. “No smart investor would make a $19.5 billion investment and want it to be undermined by importers,” he added.
Adesina also emphasized the importance of protecting local industries, stating that disparaging Dangote’s efforts is detrimental to Nigeria’s investment climate. He urged importers to establish local refineries to foster fair competition and maintain the integrity of the domestic market.
He concluded by warning against undermining local industries, asserting that such actions could deter future investments in Nigeria. As the situation unfolds, the House of Representatives has initiated a probe into the claims surrounding local refineries, signaling ongoing scrutiny in the sector.