Dangote: MAN warns against comment capable of demarketing local investments

The Manufacturers Association of Nigeria (MAN) has expressed concern over comments capable of stifling local investments. The association however called for caution from major actors, government agencies and regulators in the oil and gas sector of the economy. The MAN’s statement followed the row between Dangote and the NMDPRA over Dangote Refinery. NMDPRA had through […]

The Manufacturers Association of Nigeria (MAN) has expressed concern over comments capable of stifling local investments.

The association however called for caution from major actors, government agencies and regulators in the oil and gas sector of the economy.

The MAN’s statement followed the row between Dangote and the NMDPRA over Dangote Refinery.

NMDPRA had through its CEO, Farouk Ahmed, alleged that diesel product from domestic refineries was inferior even as he said Dangote’s refinery was not yet licensed; the comment which Dangote had dismissed and insisted the refinery produces the best quality products.

Director-General of the Association, Segun Ajayi-Kadir, in a statement said, “It is expected that agencies of government, that provide regulatory oversight functions should promote an enabling business environment for local investments to thrive. No regulatory agency should be seen to be casting a shadow over a home grown investment like the Dangote Refinery.

“The allegations of poor quality, monopolistic tendencies and non issuance of license have since been roundly debunked. There may then be the need to issue a clarification that absolves the Dangote Refinery of the negative perception generated by the news report.”

Ajayi-Kadir further stressed that, local investors in Nigeria, particularly the Dangote Industries Limited (DIL) play a vital role in driving economic growth, they pay taxes, they create jobs and foster development within the country.

“As such, it is important that these investors are protected and given the necessary support to thrive in this business environment.”

He said 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.

“There is no gainsaying the fact that Dangote Refinery is deserving of government’s 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.

“As you are aware, the manufacturing sector is beset with multifaceted challenges. They include: high cost of electricity, high cost of compliance with regulatory requirements, lack of access to financing, unfavorable foreign exchange and unfair competition from imported and smuggled products. It is therefore imperative that the Nigerian government takes proactive steps to address these binding constraints in order to improve the competitiveness of local industries and enhance their contribution to the GDP.”