MAN urges govt agencies to support, not undermine local investments

The Manufacturers Association of Nigeria (MAN) has called on federal government regulatory agencies, particularly those in the oil and gas sector, to avoid making statements that could undermine local investments.

This appeal follows recent allegations by Engr. Farouk Ahmed, Chief Executive of the Nigeria Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), regarding the quality of products from the Dangote refinery.

In a statement by its Director-General, Mr. Segun Ajayi-Kadir, MAN emphasized that government regulatory agencies should foster an environment conducive to the growth of local businesses. The association stressed the importance of supporting local investors like Dangote to create jobs and reduce dependency on imports.

“The Manufacturers Association of Nigeria has expressed grave concern and called for caution from major actors, government agencies, and regulators in the oil and gas sector of the economy over the recent debunked allegations of poor quality of diesel leveled against one of the largest private investments in Africa by NMDPRA, the Dangote Refinery,” the statement read.

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“It is expected that agencies of government that provide regulatory oversight functions should promote an enabling business environment for local investments to thrive. No regulatory agency should be seen to be casting a shadow over a homegrown investment like the Dangote Refinery.”

The statement also highlighted that the allegations of poor quality, monopolistic tendencies, and non-issuance of licenses have been thoroughly debunked. MAN suggested that a clarification might be necessary to absolve the Dangote Refinery of the negative perceptions generated by these reports.

Additionally, MAN lamented the challenges facing the manufacturing sector, such as high energy costs, an unfavorable foreign exchange regime, and unfair competition from importers, and called on the government to address these issues.

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Last week, NMDPRA’s CEO, Farouk Ahmed, claimed in an interview that the diesel quality from the Dangote refinery was inferior to imports and that the Dangote Group was attempting to create a monopoly in the country’s energy sector concerning petrol and diesel supply. These statements have since been refuted and condemned by public officials and citizens alike.

The Dangote refinery, like other local refineries, has been in dispute with international oil companies (IOCs) over the supply of crude oil.

This has led the refinery to import crude oil from the United States, Brazil, and recently, Libya. However, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified that it has resolved the oil supply dispute, with IOCs agreeing to sell to local refineries at the prevailing market price.

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The Chairman of the Dangote Group recently announced that petrol supply from the refinery would begin in August, following several postponements.