Dangote’s Threat To Quit Refinery Business ‘ll Hinder Foreign Investment – Obele

The threat by Alhaji Aliko Dangote to quit petroleum refining business in Nigeria is a huge threat to foreign investments in the country, a prominent player in the petroleum marketing business, Dr. Joseph Obele, has said.
Dangote had in the wake of his conflict with officials of the Nigerian National Petroleum Company Limited (NNPCL) said he might sell his shares in his multibillion dollar refinery in Lagos to the state-owned energy company, NNPC Limited.
Obele, who is the immediate-past Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State branch, said the threat by Dangote would make international companies planning to invest in Nigeria to have a second thought. “And by that, they will hold back their capital with the mindset that Nigeria territory is not business friendly,” he said.
Dangote’s declaration came amid escalating disputes with regulatory authorities and equity partners, sparking a reflection on his investment choices in Nigeria.
Obele said, “International investors usually conduct feasibility studies before investing in any foreign nation. The intentions of Dangote to sell his refinery with the reason that the sector has a cabal frustrating the refinery will show as red alert on the result of any feasibility study conducted on Nigeria business environment.
“There are tolerable risks that investors accept when they enter international investing. Knowing what they can mitigate those risks.
“The biggest barrier to investing in international markets is analysis of current trend as it concerns the withdrawal companies operating in that very country. Most especially if the withdrawing company is an indigenous company like in the case of Dangote refinery.”
He said foreign investors would conclude that if a Nigerian citizen could complain that the business environment was not conducive, then it would be worse for foreign investors.
“Foreign investment helps Nigeria reach its economic potential by providing capital to finance new industries and enhance existing industries, boosting infrastructure and productivity and creating employment opportunities in the process.
“The right time to stop the destructive ongoing media war between government agencies and Dangote refinery is now. The ongoing media war is not good for business reputation of the economy. Negative word of mouth builds destructive perceptions in the mind of Investors.
“Last week a government agency said Dangote diesel was inferior and today Dangote is saying the nation is not business friendly. Put all the back and front comments together, it is the suffocating Nigeria economy that will suffer at last. The media war should end now so that international investors can bring their foreign currencies to build industries and create jobs in Nigeria,” he said.
Dr. Obele urged the Federal Ministry of Information and National Orientation to stand up to their responsibilities by embarking image laundry for the Nigeria business environment which has been painted black and dirty.”