A standoff is building between Africa’s richest man and the president of the continent’s most populous economthat stung by accusations from his home nation’s government that he’s seeking a monopoly for his $20 billion oil refinery, Aliko Dangote said he’s dropped plans to build a huge steel mill in the country for fear of similar allegations.

At stake is the health of an economy that’s struggled to attract investment, and the fate of Dangote’s refinery, the continent’s biggest, is in the balance. Without it, Nigeria — Africa’s largest crude-oil producer — will need to import almost all of its motor fuel.

Nigeria’s downstream regulator has said Dangote is seeking a ban on diesel imports to boost the viability of the plant and questioned the quality of its fuel. That follows the billionaire saying the state oil company has reneged on a deal to supply it with 300,000 barrels of crude a day.

“Building a refinery like this is supposed to be a pride for everybody,” the billionaire said, accusing the regulator of wanting to continue issuing import licenses for fuel (a lucrative source of income for Nigeria’s elite for decades) instead of allowing his refinery to thrive.

For Dangote, whose business empire was allowed to flourish under previous administrations in return for him investing billions of dollars, the dispute is a shock.

“Access and favors matter. And Dangote in cement was always accused of benefiting from a monopoly,” said Antony Goldman, founder of Promedia Consulting, a political risk-advisory firm.

“Some critics say they fear a monopoly but omit to mention a status quo that relies on imports, importers and intermediaries.”There’s unlikely to be a winner in this clash of titans, and ordinary Nigerians will also pay a hefty price.

Bestmanfornow:
I thought Southwest is safe for investment see how they grab Dangote for balls

Bestmanfornow:
I thought Southwest is safe for investment see how they grab Dangote for balls

nairalanda1:



If you charged me N20000 for a job you did for me, and I paid you N5000 and told you that you have to forgive the rest because i am a poor man, you won't have much of a business left, eh, Wittyness?

If you did that for all your customers, you would be broke.


Demanding cheap fuel is why we are where we are. Calling people who want to sell that fuel at the approrpiate market price government stooges is why we are where we are.

Maybe i should call you a government stooge for demanding your full pay.

nairalanda1:


I understand you guys. You are socialists at heart.

You want things to be cheap and cheap as can be..from food to housing to all other stuff.

I get you. But the sad thing is that it is impossible. A lot of countries tried what you want, and they ended up being impoverished eventually because the debts got too much.

Plus, is BUA, Lafarge and IBETO government stooge too? Are the many companies that have refineries coming up government stooge?

(Plus yes, government has helped dangote....because it is in the interest of government to do so. If they had not, dangote would have been an importer and all the jobs his industries create would have been non-existent)



You hate capitalism. Nothing wrong with that. But at the end, people have got to be paid...and that is why we cannot have cement at N400 as you want it now.


And yes, you can say I don't comprehend you. I do, very well. You don't know it.

wittywriter:
Dangote is just a government stooge tool to impoverish so many Nigerian Masses.



Wittyness.

illicit:
How much does he sell cement in Nigeria and outside Nigeria?