Akinwunmi Adesina, president of the African Development Bank (AfDB), has defended Aliko Dangote, chairman of Dangote Industries Limited (DIL), against accusations of monopolistic practices.
Adesina’s remarks were shared in a post by Femi Otedola on X. On July 20, Dangote announced that the board had decided to halt plans to invest in Nigeria’s steel industry to avoid accusations of monopoly. This decision followed claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that refineries, including Dangote’s, produce substandard petroleum products.
The NMDPRA’s accusations of monopoly have sparked a heated dispute between Dangote, Africa’s richest man, and Nigeria’s oil sector regulators. In response to the escalating conflict, Dangote offered to sell his oil refinery to the Nigerian National Petroleum Company (NNPC) Limited on July 22.
Adesina defended Dangote, arguing that it is unreasonable to expect Dangote refineries to compete with importers. He stated, “Monopoly often exists where there are high barriers to entry or high capital costs. How many individuals or companies can do railways or refineries of the scale of Dangote Refineries?”
He continued, “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 only to have it undermined by importers.”
Adesina emphasized the high costs and risks associated with manufacturing in Nigeria, particularly given the challenging business environment. He questioned the claims of anti-competitive practices, asking, “Has Dangote refineries prevented any other company from setting up refineries? Why have others not done so for several decades? Was it Dangote that held them back?”
He argued that importers should establish local refineries to ensure fair competition. “We cannot and must not undermine, disparage, or kill local industries, especially one of this scale—a jewel of industrialization in Nigeria,” Adesina said.
Adesina also highlighted the broader benefits of local industries, such as domestic supply security, job creation, and reducing foreign exchange expenses. He criticized the disparagement of Dangote as harmful to Nigeria’s investment climate. “It sends a signal that the price for sacrificing for Nigeria is to get sacrificed,” he said.
On July 22, the House of Representatives joint committee on petroleum resources (downstream and midstream) launched a probe into claims that local refineries produce inferior products.
