Why FG must support Dangote — MAN, Otedola, Adesina speak out
…As Reps urge President Tinubu to suspend NMDPRA boss
…I will sanction any NNPC’s employee operating blending plant in Malta — Kyari
By Esther Agbo and Seun Ibiyemi
Nigerian businessman and philanthropist, Femi Otedola and President of the African Development Bank (AfDB) Group, Akinwumi Adesina have cried out for support for the Dangote refinery from the Federal Government.
Otedola and Adesina’s statements in support of Africa’s richest man, Aliko Dangote come amidst the ongoing controversy surrounding the refinery project.
Through his official X (formerly Twitter) handle, on July 23, 2024, Otedola highlighted the significant contributions of Dangote to Nigeria’s industrial landscape and called for increased government support for local business leaders.
“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 one of 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 specially for mankind,” Otedola stated.
Otedola emphasised that Dangote is the largest private sector employer in Nigeria and a major taxpayer, with his companies contributing more in taxes than the top banks combined. He highlighted Dangote’s role in reducing Nigeria’s dependency on cement imports and his investments in critical infrastructure.
He said, “In fact, 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-Owonrosoki Express Road, Wharf Road, and the Obajana-Kabba Road.”
Drawing parallels with historical and contemporary figures, Otedola noted the importance of visionary leaders in driving industrialisation. He referenced the support given to industrial giants in the United States, as well as modern tech companies like Microsoft and Tesla, which received substantial backing from the US government, and encouraged the same gesture in Nigeria.
“Countries in the nascent stages of industrialization 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 recognized the importance of fostering local champions.
“Similarly, today’s tech giants like Microsoft and Tesla received substantial support from the US government. For example, in January 2010, the 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. This initiative is part of broader efforts, such as the federal EV-charging program supported by the infrastructure law known as the National Electric Vehicle Infrastructure program, or NEVI.
“In Nigeria, we have our own titans, and it is imperative that we recognize and support them. Aliko Dangote has broken every boundary in worldwide business and industry. His contributions are not just a testament to his brilliance but a beacon of what is possible when vision meets opportunity. Supporting local champions like Dangote is crucial for our national development and economic independence. Let us continue to foster and support these visionaries who drive our nation’s progress,” Otedola said.
The statement comes as Dangote faces challenges with crude oil supplies for his refinery and disputes with regulatory authorities. The Nigerian government has intervened, holding high-level meetings to resolve the issues and support the refinery’s success, which is vital for the country’s economic growth and energy security.
This endorsement from Otedola emphasises on the critical role of private sector leaders in Nigeria’s development and the need for robust government support to ensure the success of transformative projects like the Dangote Refinery.
In his own comments, Adesina expressed shock, noting that the issue is shocking and creating bad waves for Nigeria globally.
“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.
“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 rationalised and chorused to solve any problem.
“Competition is good for everyone. But is Dangote Refineries 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.
“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,” Adesina said.
Also defending the Dangote Refinery and making an appeal to the Federal Government, the Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir said it is expected that agencies of government that provide regulatory oversight functions should promote an enabling business environment for local investments to thrive.
“No regulatory agency should be seen to be casting a shadow over a home grown investment like the Dangote Refinery.
“The allegations of poor quality, monopolistic tendencies and non issuance of licence have since been roundly debunked. There may then be the need to issue a clarification that absolves the Dangote Refinery of the negative perception generated by the news report.”
Ajayi-Kadir further stressed that local investors in Nigeria, particularly the Dangote Industries Limited (DIL) play a vital role in driving economic growth, they pay taxes, they create jobs and foster development within the country. As such, it is important that these investors are protected and given the necessary support to thrive in this business environment.
He said a business colossus like Alhaji Aliko Dangote, with investments in diverse sectors of the economy and across the Continent of Africa, should be accorded all needed support to grow and invest in more sectors and positively impact the wellbeing of the people.
“There is no gainsaying the fact that Dangote Refinery is deserving of government protection and support. The Dangote Refinery, located in Lagos, the largest single-train refinery in the world, will play a significant role in reducing Nigeria’s dependence on imported petroleum products, reduce cost and energy poverty and significantly boost our energy sufficiency.
“This is also a company in which Nigeria and Nigerians are shareholders. We should never encourage or promote a preference for imported products over local alternatives. This amounts to importing poverty and exporting prosperity.
“As you are aware, the manufacturing sector is beset with multifaceted challenges. They include: high cost of electricity, high cost of compliance with regulatory requirements, lack of access to financing, unfavourable foreign exchange and unfair competition from imported and smuggled products. It is therefore imperative that the Nigerian government takes proactive steps to address these binding constraints in order to improve the competitiveness of local industries and enhance their contribution to the GDP.”
He added that local investors are not only drivers of economic growth but also champions of national development. They are the mirrors of our national industrial aspirations and their wellbeing is the attraction for both local and foreign would-be investors.
“There is hardly any major foreign investor that would be encouraged to invest in Nigeria by the recent unwarranted castigation of Dangote Refinery. On the other hand, supporting and protecting local investors like the Dangote Refinery, would be sending a clear signal to foreign investors to take advantage of the conducive environment and invest, thereby creating jobs and building a more prosperous future for our people.
“The Association therefore calls on the Nigerian government to prioritise the protection of local investors and actively take necessary steps to improve the operating environment for manufacturers and other economic operators to thrive.”
Meanwhile, the House of Representatives has appealed to President Bola Tinubu to suspend the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.
The lawmakers argued that the regulatory chief made “unguarded comments” on the quality of products produced at the Dangote Refinery.
The lawmakers called for Ahmed’s suspension pending the conclusion of investigations into the allegations against the Authority.
This followed a motion on the urgent need to address the outrage resulting from “unguarded comments” by the NMDPRA boss.
Esosa lyawe, who moved the motion, noted that Ahmed claimed that the diesel produced by the Dangote refinery had a high content of Sulphur and was inferior to the ones imported into the country.
The House, whose leadership was at the Dangote Refinery in Lagos on Saturday, noted that the billionaire business tycoon called for a test of products produced at his $20 billion facility.
The House noted that the test was witnessed by members of the House of Representatives and it was revealed that Dangote’s diesel had a Sulphur content of 87.6 ppm (parts per million), whereas two samples of imported diesel had Sulphur levels exceeding 1,800 ppm and 2,000 ppm, thus disproving the allegations made by the NMDPRA boss.
Lawmakers were concerned that the NMDPRA allegedly issued licences to some traders who regularly import high-Sulphur diesel into Nigeria, and the use of such products posed grave health risks and huge financial losses to Nigerians.
The House hence mandated its Petroleum Downstream Committee to investigate the matter.
…Kyari to sanction any NNPC’s employee operating blending plant in Malta
Meanwhile, the Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari has vowed to sanction any of its staff operating a blending plant in Malta.
In a statement released on Tuesday through his X (formerly Twitter) handle, Kyari addressed claims that NNPC staff established a petroleum blending plant in Malta, potentially hindering local production.
Kyari categorically denied owning or operating any business ventures outside of a “local mini Agric venture,” emphasising his own lack of involvement.
He further stated that he’s unaware of any NNPC employee possessing or operating such a blending plant anywhere globally.
Kyari downplayed the potential impact of a Maltese blending plant, asserting it has no bearing on the NNPC’s business decisions or strategic actions. He pledged to enforce the NNPC’s compliance protocols, vowing to punish any employee proven to be involved in such activities.
Kyari suggested publicly exposing any staff found to be linked to the alleged plant and notifying relevant government security agencies for further investigation, citing potential national security concerns.
His statement reads, “I am inundated by enquiries from family members, friends and associates on the public declaration by the President of Dangote Group that some NNPC workers have established a blending plant in Malta thereby impeding procurements from local production of Petroleum products.
“To clarify the allegations regarding the blending plant, I do not own or operate any business directly or by proxy anywhere in the world with the exception of a local mini Agric venture.
“Neither am I aware of any employee of the NNPC that owns or operates a blending plant in Malta or anywhere else in the world.
“A blending plant in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions.
“For further assurance, our compliance sanction grid shall apply to any NNPC employee who is established to be involved in doing so if availed and I strongly recommend that such individuals be declared public and be made known to relevant government security agencies for necessary actions in view of the grave implications for national energy security,” Kyari said.
