The President of the African Development Bank (AfDB), Akinwumi Adesina, has refuted claims of a “monopoly” against Aliko Dangote, the chairman of the Dangote Group.

In recent weeks, Dangote has faced opposition from Nigerian authorities over the Dangote Refinery project and has been accused of producing substandard products. Amid this conflict, Dangote announced that the group’s board of directors has suspended plans to invest in Nigeria’s steel industry to avoid accusations of monopolistic practices.

Responding to the situation, Adesina expressed his shock and concern about the negative global image this controversy could create for Nigeria.

“Monopoly often exists where there are high barriers to entry or substantial capital costs. How many individuals or companies can build railways? How many can establish refineries on the scale of the Dangote Refinery?” he wrote on his X handle on Tuesday.

“In a nation that has been importing refined petroleum products for several decades, the abnormal simply became normal. No prudent investor would make a $19.5 billion investment only to see it undermined by importers.

“Manufacturing is extremely expensive and risky, especially in Nigeria, given the challenging business and economic environment, rife with policy uncertainties and reversals. The default response of ‘simply import it’ is often easily rationalised and advocated as a solution to any problem.

“Competition benefits everyone. But is the Dangote refinery anti-competitive? Where is the evidence? Has Dangote’s refinery prevented other companies from establishing their own refineries? Why haven’t others done so for several decades? Was Dangote responsible for holding them back?

“The Dangote refinery cannot be expected to ‘compete’ with petroleum importers. That is not competition. Let the importers establish local refineries and compete by refining in Nigeria. That is fair and justified competition.

“We must not undermine, disparage, or destroy local industries, especially one of this magnitude — a cornerstone of industrialisation in Nigeria. It’s not just about delivering the cheapest product to the market; it’s about ensuring domestic supply security, driving globally competitive industries, maximising local economic linkages, creating jobs, reducing forex expenditure, and strengthening the Naira.

“We must not be short-sighted. The disparagement of Dangote is uncalled for and self-defeating. It is detrimental to Nigeria. Who would want to invest in a country that undermines and disparages its largest investor? Investing is tough; pettiness is easy. Unfortunately, it sends the message that the price for sacrificing for Nigeria is to be sacrificed.”