Akinwunmi Adesina Defends Dangote, Warns Against Undermining Local Industries

Akinwunmi Adesina, President of the African Development Bank, has voiced concerns over the criticism directed at Dangote Group, calling it “shocking and creating bad waves for Nigeria globally.”

Adesina highlighted the significant barriers to entry and high capital costs associated with large-scale industries like railways and refineries.

He questioned how many individuals or companies could undertake projects of the scale of Dangote Refineries, noting that in a nation reliant on importing refined petroleum for decades, the abnormal has become the norm.

“No smart investor would make a $19.5 billion investment and want it to be undermined by importers,” Adesina stated.

He emphasized the risks and costs of manufacturing, particularly in Nigeria’s challenging business environment, which is marked by policy uncertainties and reversals.

Adesina defended Dangote Refineries against accusations of being anti-competitive, 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 local refineries should not be expected to compete with importers of petroleum products, and urged importers to set up their own refineries in Nigeria 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.

He stressed that the focus should be on domestic supply security, driving globally competitive industries, job creation, reducing forex expenses, and strengthening the Naira.

Adesina warned that disparaging Dangote sends a negative signal to potential investors, suggesting that the price for sacrificing for Nigeria is to be sacrificed.

He concluded, “Investing is tough. Pettiness is easy. This whole disparaging of Dangote is uncalled for. It is self-defeating. And it is very bad for Nigeria.”