Dangote/NNPCL feud worrisome — Obi, Adesina, OTEDOLA

Vanguard news.               24/07/2024

…Dangote-FG agencies’ face-off creating bad waves for Nigeria globally —Adesina

…Supporting Dangote crucial to our economic independence — Otedola

…I’ve no blending plant outside Nigeria, NNPC GCEO replies Dangote

By Jimoh Babatunde, Obas Esiedesa & John Alechenu

The presidential candidate of Labour Party in the 2023 election, Peter Obi and President of African Development Bank, AfDB, Adewunmi Adesina, yesterday expressed concern over the feud between the Dangote Group and federal regulators over the Dangote Refinery.

While Obi in a series of tweets on his X handle, urged the Nigerian National Petroleum Corporation Limited and other government agencies to tread with caution in handling whatever dispute they had with Dangote because of the far reaching implications of their actions on the economy, Adesina described the issue as shocking and creating bad waves for Nigeria globally.

Their reactions came on a day the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, said he didn’t own a blending plant outside Nigeria, in apparent response to allegation by the Dangote Group.

Obi, who argued that the Refinery deserved full support to operate and not vilification, wrote:

‘’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, these disputes must be 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.

“The refinery has the potential to generate approximately $21 billion in annual revenue and create over 100,000 jobs, with numerous additional positive impacts on the economy.

“Its strategic importance in addressing Nigeria’s fuel crisis, boosting foreign exchange earnings, and fostering economic growth cannot be overstated.

“The refinery is too vital to fail and must not be hindered, considering its crucial role in our national welfare.

“The Federal Government and its agencies need to recognize the significance of Dangote’s contributions. Alhaji Dangote is not just a businessman; he is a national and African brand symbolizing patriotism, commitment, and impactful entrepreneurship.

‘’Despite operating in a challenging business environment, he has established a remarkable industrial hub in Nigeria, encompassing over 15 sectors, including cement, sugar, salt, fertilizer, infrastructure, tomatoes, automotive, energy, petrochemicals, rice, poly sacks, real estate, mining, logistics, and maritime.

“Alhaji Dangote’s unwavering dedication to Nigeria’s industrialization, job creation, and economic growth, despite adversities, warrants full support and protection.

“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.

“In the interest of Nigeria and its citizens, as well as Africans at large, I urge the federal government and its agencies to provide Dangote Industries, especially the refinery, with all necessary support.”

Dangote, FG agencies face-off creating bad waves for Nigeria globally – Adesina

On his part, Adesina, said the disparaging of Dangote was uncalled for, saying “it is self-defeating and very bad for Nigeria.

“Who will want to come and invest in a country that disparages and undermines its own largest investor?”

Adesina said investing was tough, but noted that pettiness was easy, adding that what was happening was sending  a signal that the price for sacrificing for Nigeria was to get sacrificed.

The AfDB boss said:  “Competition is good for everyone but is Dangote refineries anti-competitive? What is the evidence?”

He said monopoly often existed where there were 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? He queried.

Adesina said in a nation that had 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,’’ he said.

He added that Dangote refinery was more than simply delivering the cheapest product to the market, stressing  that “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. “

He queried further:  “Has Dangote refinery 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?

Adesina said Dangote refinery surely could not 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, let alone one that is of this scale — a jewel of industrialisation in Nigeria,’’ he said.

Supporting Dangote crucial to our economic independence’ — Otedola

Femi Otedola, billionaire businessman, weighing in too, said in a post on his X handle yesterday afternoon said, “Aliko Dangote is also the largest private sector employer of labour in the country, and his companies are among the largest taxpayers.

“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.”

Otedola, who is also chairman of Geregu Power Plc, gave examples of countries where a few individuals laid the foundation for national development and were supported by their governments.

“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 immortalized 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 power train components for powering these innovative vehicles.

“This initiative is part of broader efforts, such as the federal EV-charging programme supported by the infrastructure law known as the National Electric Vehicle Infrastructure programme, or NEVI. In India, the government has been instrumental in supporting business titans like Gautam Adani and Mukesh Ambani.

“Their companies have received significant backing to grow and expand, contributing substantially to India’s economic growth and global business footprint. There are also records of emerging market countries like Vietnam, South Africa, Brazil, and China where their governments have supported local businesses to jump-start industrialization.

“In Vietnam, the government has provided various incentives to tech companies, fostering a rapidly growing technology sector. In South Africa, government support for the mining industry has been crucial in maintaining its global competitiveness. Brazil has seen substantial government investment in its agricultural sector, transforming it into one of the world’s leading food exporters. In China, government backing for companies like Huawei and Alibaba has propelled them to global leadership in technology and e-commerce, “ Otedola noted.

Otedola said Dangote has broken “every boundary” in worldwide business and industry.

“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,” he wrote.

I have no blending plant outside Nigeria, NNPC GCEO replies Dangote

Meanwhile, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has said he does not own a blending plant outside Nigeria.

Kyari stated this yesterday, in reaction to claims by President of the Dangote Group, Alhaji Aliko Dangote, that some officials of the NNPC had blending plants in Malta.