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NNPC/Dangote quarrel hurting Nigeria’s business landscape in the global arena

Heineken Lokpobiri, summoned Dangote and the NNPC leadership to a meeting yesterday aimed at resolving the differences between Dangote and the union of oil markets in Nigeria.
NNPC Dangote

Breaking News: Akinwumi Adesina, President of the African Development Bank, addressed the ongoing disagreement between Dangote and the Nigerian National Petroleum Corporation (NNPC). He stated that this conflict is tarnishing Nigeria’s business image on the international stage. Adesina expressed concern, emphasizing that Nigeria needs to develop new business partnerships and strengthen existing ones.

In a statement obtained by 9AM News Nigeria, Adesina remarked, “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?”

He further noted, “Investing is tough. Pettiness is easy. It sadly sends a signal that the price for sacrificing for Nigeria is to get sacrificed.”

Additional statements from the head of the AfDB, also obtained by 9AM News Nigeria, read, “They accuse him of being a diehard monopolist, but 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 on 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.”

Adesina explained that manufacturing is extremely expensive and risky, especially in Nigeria, given the challenging business and economic environment, policy uncertainties, and reversals. The default mode of “simply import it” is easily rationalized 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?”

Adesina continued, “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.”

He advised the Nigerian government, saying, “We cannot and must not undermine, disparage, or kill local industries, especially one of this scale—a jewel of industrialization 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.”

Ogasabi has learned that Nigeria’s Minister of State for Petroleum, Heineken Lokpobiri, summoned Dangote and the NNPC leadership to a meeting yesterday aimed at resolving the differences between Dangote and the union of oil markets in Nigeria. For more updates, tune in to 9am news Nigeria.

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