– ADB President Issues Stern Warning on Negative Impact of Undermining Industrial Giants
– An Ill-timed Inquisition: Why Shocking Saga May Dent Nigeria’s Global Image
A storm brews across Nigeria’s industrial landscape, casting a dark shadow over the nation’s global image. This tempest manifests in the face-off between Dangote Refinery and the Nigerian National Petroleum Corporation Limited (NNPCL), according to Akinwumi Adesina, the eloquent and visionary President of the African Development Bank Group.
The seasoned administrator and financial guru recently voiced his profound concern over the escalating controversy between Aliko Dangote’s enterprise and the NNPCL. His words, resonating with the gravity of a tolling bell, caution against the perilous path Nigeria treads in undermining its industrial titan.…CONTINUE READING
Adesina’s voice, imbued with a mix of shock and disappointment, pierces through the cacophony surrounding the Dangote issue. In an era where the abnormal has become tragically normal, he calls for introspection and wisdom, urging Nigeria to cherish and protect its industrial jewels rather than tarnishing them with petty squabbles and short-sighted criticisms.
Managing Industry and Ambition
Adesina’s discourse on the Dangote dilemma is more than a mere statement; it is a symphony of industry and ambition. The Dangote Refineries, a monumental $19.5 billion investment, stands as a testament to what is possible in a nation besieged by economic turbulence and policy inconsistencies. It is a beacon of hope, illuminating the path toward self-sufficiency and industrial might. Yet, this beacon is under threat, not from external forces, but from within.
Cost of Monopoly and the Mirage of Competition
“Monopoly often exists where there are high barriers to entry or high capital costs,” Adesina muses. The towering presence of Dangote Refineries is not a symptom of anti-competitive practices but rather a reflection of the colossal challenges inherent in such an undertaking. “How many individuals or companies can do railways? How many can do refineries of the scale of Dangote Refineries?” he questions, his words cutting through the fog of misunderstanding.
In a nation accustomed to importing refined petroleum products for decades, the abnormal has insidiously become the norm. The ease of importation has lulled many into complacency, obscuring the formidable risks and expenses tied to local manufacturing. “No smart investor would make a $19.5 billion investment and want it to be undermined by importers,” Adesina asserts, highlighting the peril of pettiness over prudence.
Mirage of Competition
“To manufacture is extremely expensive and risky,” Adesina continues, painting a stark picture of the Nigerian business environment. This is a landscape fraught with policy uncertainties and reversals, where the default mode of “simply import it” is chorused as a panacea. Yet, this mode of thinking is a mirage, promising ease but delivering dependency and vulnerability.
Adesina challenges the narrative of competition, probing the evidence against Dangote Refineries. “Is Dangote refineries anti-competitive? What is the evidence?” he asks, his inquiry peeling back layers of misconception. Has Dangote, in its quest for industrial dominance, truly stifled the emergence of other refineries? Or is the real culprit a systemic inertia that has gripped the nation for decades?
Paradox of Competition and Fair Play
“But Dangote refineries surely cannot be asked to ‘compete’ with importers of petroleum products,” Adesina states, exposing the paradox at the heart of the controversy. True competition, he argues, would see importers setting up local refineries, refining in Nigeria, and thereby engaging in fair and justified competition. Anything less is a disservice to the spirit of industrialization and national self-reliance.
Adesina’s plea is not merely for Dangote but for the very soul of Nigerian industry. “We cannot and must not undermine, disparage, or kill local industries, talk less of one that is of this scale — a jewel of industrialisation in Nigeria,” he declares, his voice a clarion call for wisdom and foresight.
The Ripple Effect: Beyond the Immediate
The Dangote refineries represent more than just a business venture; they embody a vision of domestic supply security, global competitiveness, and economic resilience. Adesina eloquently articulates this vision, emphasizing the myriad benefits that extend beyond mere market pricing. “It is more than simply delivering the cheapest product to the market,” he explains. “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.”
The Perils of Myopia
“We must not be myopic,” Adesina warns, his words a poignant reminder of the dangers of short-sightedness. The disparagement of Dangote is not just an attack on a single entity but a self-defeating act that reverberates across the national landscape. It sends a chilling message to potential investors: that Nigeria does not value nor protect its own.
“Investing is tough. Pettiness is easy,” he remarks, encapsulating the essence of the current predicament. The ease of criticism and the allure of pettiness threaten to overshadow the arduous journey of industrial progress and national development.
Protecting the Jewel of Industrialization
Adesina’s message is clear and urgent: Nigeria must rise above petty squabbles and shortsighted criticisms to protect and nurture its industrial gems. The Dangote refineries, a colossal beacon of hope and progress, must not be allowed to falter under the weight of unfounded disparagement.
“This whole disparaging of Dangote is uncalled for. It is self-defeating. And it is very bad for Nigeria,” Adesina concludes, his words echoing the sentiments of a leader deeply committed to the nation’s prosperity. “Who will want to come and invest in a country that disparages and undermines its own largest investor?”
The Price of Sacrifice
In the end, Adesina’s lamentation is a clarion call for introspection and action. The price of sacrificing for Nigeria should not be to get sacrificed. The nation must rise above the fray, embrace wisdom over pettiness, and chart a course toward a future where industrial giants like Dangote are celebrated and protected, not disparaged and undermined.
A Future Forged in Unity
The Dangote dilemma, as articulated by Akinwumi Adesina, serves as a powerful reminder of the delicate balance between industrial ambition and national pride. As Nigeria stands at this crossroads, the choices made today will echo through the annals of history. Let us heed Adesina’s call, protect our industrial jewels, and forge a future where Nigeria’s global image shines bright, unmarred by pettiness and division.
