Dangote refinery: MAN cautions against demarketing local investments

Dangote refinery: MAN cautions against demarketing local investments

The Manufacturers Association of Nigeria (MAN) has expressed concern over comments that could stifle local investments. The association has called for caution from major actors, government agencies, and regulators in the oil and gas sector.

This statement from MAN follows a dispute between Dangote and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). NMDPRA, through its CEO Farouk Ahmed, alleged that diesel from domestic refineries was inferior quality and that Dangote’s refinery was not yet licensed. Dangote dismissed these claims, insisting that his refinery produces high-quality products.

In a statement, Segun Ajayi-Kadir, Director-General of MAN, emphasized that government agencies should create an enabling environment for local investments. “No regulatory agency should be seen casting a shadow over a homegrown investment like the Dangote Refinery,” he said.

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Ajayi-Kadir highlighted the significant role local investors, particularly Dangote Industries Limited (DIL), play in driving economic growth. “Local investors pay taxes, create jobs, and foster development within the country. It is important that these investors are protected and given the necessary support to thrive in this business environment,” he said.

He further noted that Alhaji Aliko Dangote, with his vast investments in diverse sectors across Africa, should be supported to grow and invest in more sectors, positively impacting the people’s well-being. “There is no gainsaying the fact that Dangote Refinery is deserving of the government’s protection and support,” Ajayi-Kadir stated.

He underscored the importance of the Dangote Refinery in reducing Nigeria’s dependence on imported petroleum products, reducing costs, and boosting energy sufficiency. “We should never encourage or promote a preference for imported products over local alternatives. This amounts to importing poverty and exporting prosperity,” he added.

Ajayi-Kadir also highlighted the manufacturing sector’s challenges, including high electricity costs, regulatory compliance costs, lack of financing, unfavourable foreign exchange, and competition from imported and smuggled products. He urged the Nigerian government to address these constraints to improve the competitiveness of local industries and enhance their contribution to the GDP.

Dangote refinery: MAN cautions against demarketing local investments