By
Coker Onita
In the last few months, the question has continued to reverberate whether the phenomenon called ALIKO DANGOTE has not become an albatross, the constant pain in the neck of some Nigerians? They have pursued all tactics, ranging from sheer manoeuvring, Arms twisting to envy, jealousy, blackmail, etc all aimed at Dangote’s jugular. Sadly for them, he keeps escaping, emerging stronger and more powerful, always found several kilometers ahead of his detractors.
The man constantly beats them silly in their own game of chess. Dangote’s popularity reached unfathomable heights when it became clear that his $20 billion petrochemical refinery was about to take off . His detractors, initially, never gave him a chance. They did everything to checkmate him, including attempt not to sell local crude to his refinery. When those steps temporarily succeeded, he imported raw crude from far-flung places like United States of America to stay in business. At a point, his enemies foresaw a situation where only him will determine the price of how much petrol will sell at the pumps. They ensured that the nation became extra wet with mindless importation of fuel.
As Dangote coasts along, it became clear that Nigerian government have no alternative other than to sell crude to him even in local currency because the little foreign exchange we have can’t sustain our imports. As Dangote’s refinery stabilizes further, more obstacles were placed in it’s path. They accused the company of producing low quality fuel, compared to imported ones . They even set the marketers against him, refusing to lift his fuel. Meanwhile, the man went ahead to import 4,000 CNG powered trucks, unprecedented in the history of the industry.
The final straw was the trouble between Dangote and the Unions: PENGASSAN and NUPENG. At this point, it became clear that the cabal was not only fighting Dangote and his refinery, it was ready to plunge Nigeria into economic cesspit . The Unions declared total withdrawal of service at the upstream and downstream sectors and the nation was literally brought to it’s knees. The allegation was that Dangote did not want to unionize his staffers.
It was a matter of time before they realized that it was a wrong way to go. Dangote has become a behemoth, a phenomenon of sorts that no one can stop! The Vice President, Alhaji Kashim Shetima said so in no unmistalaken terms when be backed Dangote Refinery after the declaration of the industrial dispute. “Nigeria is greater than any trade union,” he said with a note of finality.
Hardly do Nigerians wake up daily without patronizing him: From Sugar, salt, rice, cement, fertilizer to pasta, lndomie, etc. And now the king of them all: Petrol. By last week, news came that his refinery is expanding it’s. capacity from 650,000 barrel per day (bpd) to 1.4 million bpd, thereby becoming the largest refiner in the whole world. What a project, what a phenomenon!! As the detractors plan, Dangote shoots at higher stakes.
On a reflection, with Dangote’s track record, can we say that their fears of monopolistic tendencies are misplaced? NO, I dare say with a tinge of regret. What’s the cost of cement today? It has gone beyond the rooftops despite the fact that the major raw material, limestone, exists in abundance here. Dangote virtually monopolizes the industry. Ditto for salt, sugar, fertilizer, etc.
The submission is that if Dangote refinery is allowed to dominate the petroleum market, he could begin to sell products at impossible prices.
While the likes of Dangote should be encouraged, Nigeria needs control measures to check monopolistic tendencies, which if unchecked can be deleterious to the economy and the nation at large. Other big players should be encouraged to come in and compete. A situation where rent seekers will dictate the growth pace and continue to slow Nigeria down, should now be jettisoned and discarded. lndeed, they should be thrown away into the dustbin of history.
