The biggest issue trending for days in Nigeria is Dangote and his $20 billion refinery. A lot
of reactions and comments have trailed the recent comments on Dangote Refinery.
Trouble began when the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), stated that the government was yet to licence the Dangote refinery to commence operations. They also said the diesel from his refinery was of inferior quality compared with the imported product.
During a visit to the Dangote refinery by members of the House of Representatives, Dangote, refuted the allegations from the country’s midstream and downstream regulator. He also frowned at being termed a monopolist.
The business mogul thought the accusations were very demoralizing and as a result, hinted that his company’s board had decided not to continue with plans to develop a new steel plant in Nigeria to stop further criticism.
In response to the saga, numerous stakeholders have thrown their weight behind Dangote, urging the federal government to support industrialists like other countries do.
Dangote is Nigeria’s titan and should be supported – Otedola
Weighing in on the matter, billionaire businessman, Femi Otedola on Tuesday advised the federal government to support local investors and visionary leaders in the business sector like Africa’s richest man, Aliko Dangote.
Otedola described Dangote as the nation’s “titan that God created especially for mankind,” saying that he “has broken every boundary in worldwide business and industry.”
According to him, “In Nigeria, we have our own titans, and it is imperative that we recognize and support them. 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.”
“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,” Otedola added.
FG should support, not vilify Dangote – Obi
Also throwing his weight behind Dangote refinery, the Labour Party presidential candidate in the 2023 election, Peter Obi emphasised the importance of the refinery to Nigeria’s economic stability. Obi who wrote on his X platform, urged the federal government to provide necessary support for the operation of the Dangote refinery and not to vilify it, stressing its importance to Nigeria’s economic stability.
His words, “The recent conflicts between Dangote Industries and some government agencies are deeply troubling. This issue transcends political affiliations and personal grievances. It is fundamentally about Nigeria’s economy, future, and the well-being of its citizens.
“Given Alhaji Dangote’s significant contributions to Nigeria, it is crucial that these disputes are resolved swiftly. Government agencies should be directed to offer the necessary support for the seamless launch and operation of the Dangote Refinery and its associated enterprises.” Obi further stated that the refinery, which has the potential to generate billions of dollars and create thousands of jobs, can also address Nigeria’s fuel crisis, boost foreign exchange earnings, and foster economic growth.
“The refinery is too vital to fail and must not be hindered considering its crucial role in our national welfare.”“With economic indicators like unemployment, inflation, forex scarcity, and debt worsening, every sensible and patriotic government should regard enterprises like Dangote Industries as national treasures, meriting robust support and protection,” he added.
Has Dangote refinery prevented any other company from setting up refineries? —Akinwumi
In an X post shared by Femi Otedola, President of the African Development Bank (AfDB), Akinwumi Adesina criticised the “monopoly” accusations against Aliko Dangote.
Defending Dangote, Adesina said that “Dangote refineries surely cannot be asked to compete with importers adding, “Monopoly often exists where there are high barriers to entry or high capital costs.”
He wrote, “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 rationalized and chorused to solve any problem.
“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.”
“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, maximizing 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.”
Govt’s action dangerous for Nigeria – Falana
While expressing worry over the dispute surrounding the Dangote refinery, human rights lawyer Femi Falana, noted that the federal government’s action sends a negative signal to investors.
Speaking on Channels TV’s programme on Tuesday, Falana stated that “The government’s actions are contradictory; seeking foreign investment while destroying local investment. This is dangerous for the country.”
“It is so embarrassing that we are telling the whole world that the government of Nigeria is incapable of managing its affairs. That one person is monopolising trade in our country.
”What is the purpose of the government? It is to checkmate any monopolistic control of any business in Nigeria. But what do you call a monopoly?
“If you have allowed your own refineries to be destroyed, what happens? Somebody now decides to have a refinery, that’s a monopoly? There is nothing you can do about it.
“You must now stop this childish, very puerile argument that someone wants a monopoly.
“Is it not the business of the government? That’s why you have the Federal Consumer Protection Commission to deal with anybody who wants to maintain a monopoly in business in the country. The government must go back to the drawing table.”
”If a factory is likely to employ 500,000 people, young people, the government must try and embrace that company and see what can be done,” he said.
Conflict between Dangote and FG troubling —Atiku Abubakar
Also on his X handle, People’s Democratic Party presidential candidate in the 2023 election, Alhaji Atiku Abubakar said that “The conflict between @AlikoDangote and @NMDPRA_Official is troubling. The Dangote Refinery, our nation’s largest private investment, is crucial for Nigeria’s energy and economic stability.
The 650,000 bpd refinery is essential for our energy needs and economic stability, and NNPCL’s investment underscores its importance. If we neglect this, we risk deterring vital foreign direct investment. No investor will trust a nation that undermines its key assets. Protecting significant investments like Dangote’s is essential to attract FDI and drive our economic growth.”
Netizens react
Netizens also took to several social media platforms especially X, to react to the ongoing dispute about the refinery.
@uchevictor2822 wrote, “Imagine the Nigerian government accusing Dangote refinery of producing bad products. This is the same Nigeria that doesn’t have a working refinery. Who do us?”
@esthermba453 reacted, “It is simple logic. They have deliberately sat on and kept down local refining in order to continue importation which is ladened with corruption and inefficiency. And that, puts big dollars in the pockets of public administrators at the helm of affairs in government and MDAs.”
@Dontbackdown wrote, “He paid $100 million to Lagos state government for land. Refinery that the Nigerian government can’t and won’t build. No encouragement.”
@Esteembehe wrote, “LOL. Everybody just dey wail for this government, including the rich…”
@dolawanle reacted , “They don’t know what they are doing. @officialABAT should intervene speedily to avoid his government collapsing. This is bad publicity for our nation. Those cabals must be silenced now.”
Dangote Refinery’s success can reduce inflation —Adebajo
Also reacting to the dispute during Arise TV programme on Wednesday, CFG Advisory Chief Executive Officer of Adetilewa Adebajo, stated that Dangote Refinery’s success can help reduce inflation as well as boost productivity in Nigeria. He emphasised that the government must tackle inflation to achieve economic growth.
“As long as the economy is experiencing runaway inflation, the economy cannot grow, and inflation erodes all our purchasing power.
“One of the biggest problems we have in Nigeria is stagflation, which is a very difficult situation to get out of – high unemployment, high inflation, and no growth,” he said.
Adebajo further stressed that effective economic management is vital, adding that the Dangote ‘Refinery’s success can help reduce inflation in Nigeria by stabilising energy supply and security’.
“I think it is important that we look at it because the economic management in this country today is very critical.
“That is why I feel that this Dangote Refinery issue (rift with regulator) is a distraction because the success of that project can help reduce inflation and stabilise supply in energy security,” he stated.
Dangote/FG feud very bad for Nigeria – Oseni
The matter was also the subject of discussion on several programmes on Arise Tv. Reacting, Rufai Oseni said, “We can’t bring in sentiments of politics or business interest; all interested parties should sit in a room with the government and look for an amicable resolution. This is in total, very bad for Nigeria. Great that he put $100 million on the ground.
In countries around the world, there are always businesses that carry countries. There are businesses that will be bigger than others.
He added, ”All these years, nobody was able to build a refinery, he did it. Why did he build the refinery?, because this same government denied him the chance to turn around Port Harcourt refinery that many years after, they cannot still run.”
And to those with ‘bad belle’ he advised, “Think about how we can amicably resolve this and move the nation forward.”
In addition to being the biggest taxpayer, Ojy Okpe said Dangote is also one of the biggest employers of labour.” According to her, a visit to the refinery revealed the large number of young people working there, noting that “it’s a huge refinery that he has set up there. Dangote refinery is here to stay.”
Midstream, Downstream regulatory authority giving Tinubu bad name —Abati
For Dr Reuben Abati, “President Tinubu must wade into the matter. The midstream and downstream regulatory authority is giving his administration a bad name and embarrassment. That’s why I said it’s an image issue for the Tinubu administration. He came to office based on progressive politics, pro-business and investment. The Dangote initiative which we have all been looking forward to and celebrating 650,000 barrels of finished product per day is the single largest train of a refinery in Africa.
And now, the same regulator that cannot do anything at the midstream and downstream called Faruk Ahmed is the one saying the Dangote refinery has not been licensed. Meanwhile, it’s in the news that the NMDP went there at the end of March or thereabout; there was a letter saying that in terms of equipment and personnel, the refinery has satisfied minimum requirements.
“The responsibility of a regulator is to nurture the business. The same people who have not been able to fix the refineries are the ones trying to block the Dangote refinery. They must make sweet crude available.
Those who say it cannot be done should stop disturbing people who have done it. All the naysayers in Nigeria will try to stop you from doing something.
This is the same story of Air Peace. All through the week, the goodwill Nigerians have demonstrated towards the Dangote Refinery has been tremendous.
On radio, television, public places, everywhere, public opinion has been on the side of Dangote. Dangote, even if he is disturbed, must be all smiles to hear the voice of the people yelling ‘ITS GAME, SET AND MATCH –
ALIKO DANGOTE – as a tennis umpire would announce a winner of a match. He is the winner in the battle with the forces against him.”
