We all watched former President Muhammadu Buhari shut down roads in Lagos to commission the Dangote Refinery before his exit from office, only for Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), who was also at that commissioning, to say the refinery is 45% ready with its product inferior.
The message is loud and clear to every intending investor in Nigeria; if the Nigerian state could maltreat its biggest entrepreneur this way, then your business stands no chance.
During the week, Dangote group cried out that the IOCs were depriving him of supply and were also playing games with pricing, making him go as far afield as the US to get supplies, thereby messing up their permutations. He further went ahead to say that one government parastatal was throwing up kobo kobo licences to all sorts who are now bringing in low-quality diesel, thereby negatively impacting their ability to compete.
The open battle between the many hands of octopus NNPCL and Dangote, the failure of the refinery will be a good chance for NNPCL to gloat, while the triumph of that massive investment will be Dangote’s last laugh. If a good win-win is not sought, both parties could sabotage themselves into heavy losses for Nigeria.
Dangote sourced lots of forex from Nigerian banks and the Central Bank of Nigeria, under the leadership of Godwin Emefiele. And doing forex business with Emefiele is perceived as a cardinal sin to Tinubu. It would not be hard to punish.
One of President Bola Tinubu’s most famous quotes is “let the poor breathe”. The quote has become a national anthem in most places in Nigeria, but it seems the policies of the government so far are in stark variance with that famous quote, leaving many Nigerians questioning the true intentions behind these sweeping economic reforms.
First, when the president announced the removal of fuel subsidies during his inauguration speech, it marked the beginning of a spiraling inflation crisis in the country. After some weeks, this was followed by the decision to allow the naira to float freely on the foreign exchange market. To the average Nigerian, these twin policies felt like an economic armageddon.
Nigeria, everything is inextricably tied to the prices of fuel and the US dollar. Even a humble tomato seller who has never physically seen a dollar in her life will confidently tell you that the fluctuating exchange rate has forced her to increase her prices. These vital commodities are the linchpins of the Nigerian economy, and any disruption to their pricing sends shockwaves through every sector and industry.
Those two major decisions by the government threw the entire economy into turmoil. The administration has attempted to reassure the public that these are merely “teething problems,” and that the benefits of these reforms will become evident in the future.
However, the glaring irony of the whole situation is that while the breath is being squeezed out of the poor, a business man like Dangote is making efforts, despite frustrations to make Nigeria better, with his investment.
So far, Nigerians have not witnessed any modicum of sacrifice from their elected leaders. The budgets allocated to political offices and their vast entourages of aides remain humongous, with no apparent effort to tighten their belts or lead by example during these trying times.
While the poor are gasping for breath, the political elite carries on with business as usual, ensconced in their lavish lifestyles.
A Former Kano State Governor, Rabiu Kwankwaso, on Wednesday weighed in on the disagreement between the Dangote Refinery management and the Nigerian regulatory authorities.
Nigerian regulatory authorities had accused Dangote Refinery of rolling out sub-standard petroleum products, a claim the company has refuted.
Reacting via his X handle, Kwankwaso blamed what he described as ‘unnecessary fuss’ on vested interests, saying it could damage investor confidence in the Nigerian economy.
Femi Falana, on the other hand, is worried about the negative impacts of the Dangote Refinery spat, saying the saga sends a dangerous signal to investors about Nigeria.
Nigerian regulatory authorities had accused Dangote Refinery of rolling out sub-standard petroleum products, a claim the company has refuted.
The Chairman of the Dangote Group Aliko Dangote had also shelved plans for investment in the steel sector owing to accusations of monopoly against him.
But Falana has dismissed the monopoly claim, labelling it as childish.
“It is so embarrassing that we are telling the whole world that the government of Nigeria is incapable of managing its affairs. That one person is monopolising trade in our country,” he said.
Falana asked the government to work with Dangote Refinery and support its operations.
“If a factory is likely to employ 500,000 people, young people, the government must try and embrace that company and see what can be done,” he said.
Shareholders under the auspices of the Pragmatic Shareholders Association of Nigeria have defended Africa’s richest man, Aliko Dangote, while criticising the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, for a “deliberate attempt” at demarketing Dangote Petroleum Refinery and Petrochemicals.
The group also said that Nigeria and Nigerians must rally around Dangote Refinery.
In a statement by its National Coordinator, Bisi Bakare, on Wednesday, PSAN expressed dismay over recent allegations from the petroleum regulatory agency regarding the quality of diesel produced by Dangote Petroleum Refinery.
The NMDPRA boss has recently faced backlash for suggesting that the diesel produced by the Dangote Refinery is of inferior quality compared to imports into the country.
This bad bele against Alhaji Dangote calls for concern. Giant multinationals are running away from a tanking economy, others are just carting funds away. About 200 Nigerian politicians have been reported to own billions of top-notch real estate in Dubai, but Dangote has put his faith, all of his wealth and his huge reputation to drop such a gigantic edifice that is impacting very succinctly on the economy in various ways, and all we can hear are snide comments and barbaric intents towards the man and his structures.
Dangote refinery needs protection. Its share size and disruptive nature on markets will certainly attract hatred from vested interests and if the government doesn’t stand against them, this will be another powerful dream gone down the drain. May God forbid!
Olamide Adeniji is a member of the editorial team of TheScript Newspapers
