MAN: Unwarranted attacks on Dangote refinery would discourage foreign investors

The Manufacturers Association of Nigeria (MAN) says the “unwarranted attacks” on Dangote Petroleum Refinery would discourage foreign investors.

MAN expressed concern over the allegations of poor quality diesel against Dangote refinery by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

NMDPRA and Dangote refinery have been embroiled in a dispute that began recently.

The dispute peaked on July 18 when Farouk Ahmed, the chief executive officer of NMDPRA, said local refineries, including the Dangote refinery, produce inferior products compared to the ones imported into the country.

Aliko Dangote, chairman of Dangote Group, denied the allegations by testing diesel from his refinery on July 20 when federal lawmakers visited the plant.

He also called for a probe into the allegations of the NMDPRA.

On July 22, the lawmakers launched investigations into claims that local refineries, including the Dangote refinery, produce inferior products.

They said allegations that the international oil companies (IOCs) in Nigeria are frustrating the survival of the Dangote refinery will also be probed.

On Tuesday, the house of representatives asked the federal government to suspend Ahmed over “unguarded comments”.

Addressing the dispute, Segun Ajayi-Kadir, MAN director-general (DG), said government regulatory agencies should promote an enabling business environment to ensure the success of local investments.

Ajayi-Kadir said no regulatory agency should be seen “casting a shadow over a homegrown investment like the Dangote refinery”.

He said local investors are not only drivers of economic growth but also champions of national development.

“They are the mirrors of our national industrial aspirations and their wellbeing is the attraction for both local and foreign would-be investors,” Ajayi-Kadir said.

“There is hardly any major foreign investor that would be encouraged to invest in Nigeria by the recent unwarranted castigation of Dangote refinery.”

He said the allegations of poor quality, monopolistic tendencies and non-issuance of licence have since been debunked.

Ajayi-Kadir, however, said a clarification might be necessary to clear the Dangote refinery of the negative perception caused by the allegations.

The DG said local investors in Nigeria, particularly Dangote Industries Limited, play a vital role in driving economic growth by paying taxes, creating jobs and fostering development within the country.

He said as such, it is essential to protect and provide the necessary support to these investors to help them thrive in the current business environment.

“A business colossus like Alhaji Aliko Dangote, with investments in diverse sectors of the economy and across the continent of Africa, should be accorded all needed support to grow and invest in more sectors and positively impact the wellbeing of the people,” Ajayi-Kadir said.

“There is no gainsaying the fact that Dangote refinery is deserving of government protection and support.

“The Dangote refinery, located in Lagos, the largest single-train refinery in the world, will play a significant role in reducing Nigeria’s dependence on imported petroleum products, reduce cost and energy poverty and significantly boost our energy sufficiency.

“This is also a company in which Nigeria and Nigerians are shareholders.

“We should never encourage or promote a preference for imported products over local alternatives. This amounts to importing poverty and exporting prosperity.”

‘MANUFACTURING SECTOR FACING NUMEROUS CHALLENGES’

Ajayi-Kadir said the manufacturing sector is facing numerous complex challenges.

These challenges, he said, include the high cost of electricity, high cost of compliance with regulatory requirements, lack of access to financing, unfavourable foreign exchange and unfair competition from imported and smuggled products.

The director-general urged the government to take proactive measures to address these binding constraints to improve the competitiveness of local industries and enhance their contribution to the country’s gross domestic product (GDP).

He said supporting and protecting local investors would signal to foreign investors that the environment is favourable for investment, leading to job creation and a more prosperous future for the country.

Ajayi-Kadir called on the government to prioritise the protection of local investors and actively take necessary steps to improve the operating environment for manufacturers and other economic operators to thrive.