Nigerian billionaire Femi Otedola has taken to social media to support Aliko Dangote and his ambitious Dangote Refinery project.
Otedola’s endorsement echoed recent sentiments expressed by Akinwunmi Adesina, President of the African Development Bank, who defended Dangote against criticisms of his business practices, asserting that such critiques are misguided and detrimental to Nigeria’s economic progress.
Otedola shared Adesina’s assertion, which points to the formidable challenges facing industries like large-scale oil refining. Adesina argued that while competition is essential, expecting smaller entities to directly rival Dangote’s refinery is impractical given the immense barriers to entry in the sector.
He emphasized that genuine competition would arise from additional companies constructing their own refineries within Nigeria—a move that has been scant in recent decades.
Highlighting the substantial capital required for large-scale refineries, Adesina dispelled notions of monopolistic behavior by Dangote, attributing limited competition instead to these formidable financial hurdles. He criticized the country’s longstanding dependence on imported refined products as counterproductive to domestic production capabilities.
Adesina proposed a proactive approach: encouraging importers to establish local refineries and compete by refining within Nigeria. This, he argued, would foster fairer and more productive competition, bolstering local industries and diminishing reliance on foreign imports.
Central to Adesina’s advocacy is the support for homegrown enterprises, particularly major initiatives like Dangote’s refinery, viewed as pivotal for national supply security, job creation, and economic resilience. He cautioned against shortsighted criticisms that could deter future investments in Nigeria, urging a collective commitment to nurture and empower local investors.
“We cannot afford to be narrow-minded,” Adesina cautioned. “Unfair criticism of Dangote’s efforts is unwarranted… We must create an environment where investors feel valued and secure.”
