Nigeria: Dangote’s Move to Be Sole ‘Importer’ of Fuel Not Anti-Competitive – Adesina

The president of the African Development Bank Group (AfDB), Akinwumi Adesina, has said the push by the president of Dangote Group, Aliko Dangote, to be the sole ‘importer’ of fuel in the country is not anti-competitive.

Mr Adesina made the assertion in the messages he circulated to some eminent Nigerians, which were included in a post on X by Femi Otedola, the chairman of FBN Holdings and Geregu Power on Tuesday.

According to the post, Mr Adesina noted that monopoly often exists where there are high barriers to entry or high capital costs.

“Has Dangote refineries prevented any other company from setting up refineries? Why have others not done so? How come they have not done so for several decades? Was it Dangote that held them back?” Mr Adesina was quoted as saying.

“But Dangote refineries surely cannot be asked to ‘compete’ with importers of petroleum products. That is not competition. Let the importers set up local refineries and compete by refining in Nigeria. That is fair and justified competition.”

The AfDB’s chief’s reaction follows a claim by authorities in Nigeria that Mr Dangote, who built the refinery – Africa’s largest – at the cost of $19 billion is seeking an exclusive right to be the sole importer of petroleum products in Nigeria.

Before the Petroleum Industry Act (PIA) was signed into law in August 2021 by ex-president Muhammadu Buhari, the bill originally sought to allow only refinery owners to be the importers of fuel into the country.

The part granting that privilege to refiners was expunged from the legislation after a backlash from stakeholders before the PIA was approved.

By Accra Times.