AfDB Defends Dangote Refinery Against Claims of Anti-Competitive Practices

The President of the African Development Bank (AfDB), Akinwunmi Adesina, has spoken out in defense of the Dangote Refinery, stating that its petroleum products competing with importers are not anti-competitive.

Adesina, who previously served as the Minister of Agriculture in Nigeria, made these comments in a statement shared on X (formerly Twitter) by Nigerian billionaire and Chairman of Geregu Power, Femi Otedola.

The AfDB boss addressed the recent statement made by the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, who had claimed that the Dangote Refinery was anti-competitive.

Adesina challenged this assertion, questioning whether the Dangote Refinery has prevented other companies from setting up their own refineries in Nigeria. He argued that competition is beneficial for everyone and that the Dangote Refinery should not be expected 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,” Adesina said.

Furthermore, Adesina emphasized that Nigerian authorities must not undermine or “kill” local industries, especially one as significant as the Dangote Refinery, which he described as a “jewel of industrialization in Nigeria.”

The AfDB president highlighted the importance of the Dangote Refinery beyond just delivering cheap petroleum products to the market. He stressed the refinery’s role in ensuring domestic supply security, driving globally competitive industries, maximizing linkages in the local economy, creating jobs, reducing foreign exchange expenses, and shoring up the Nigerian Naira.

Adesina’s statement comes amid a recent dispute between the Dangote Group and the NMDPRA CEO over the quality of the Dangote Refinery’s petroleum products. This matter was eventually addressed through a meeting mediated by the Minister of Petroleum Resources (Oil), Heineken Lokpobiri.

The AfDB president’s defense of the Dangote Refinery underscores the importance of supporting local industries and fostering a conducive environment for the growth and development of the oil and gas sector in Nigeria.