Dangote Group praises Tinubu’s economic changes, invites foreign investors to Nigeria

The Dangote Group praised the Nigerian government on Wednesday for creating a good environment for investors through its economic changes. They also urged foreign investors to put their money in Nigeria.

Hassan Mahmud, Group Chief Economist at Dangote Group, made this call on behalf of the company’s chairman, Aliko Dangote. He spoke during the World Bank/IMF meetings in Bangkok, Thailand.

Mr Mahmud shared his thoughts at a Nigerian Investors’ Forum held on Wednesday in the capital of Thailand.

Representing the Dangote Group, Mr Mahmud said the group has greatly benefited from the government’s financial and monetary changes. These reforms helped the company stabilize, especially in terms of monetary policy.

“The transparency and the credibility we have seen in that has significantly enabled the Dangote Group to have good projections and was able to come out of the woods from its investment of about $17 billion in the refinery,” he said.

He added, “That cannot happen in an economy where there are no consistencies, where there is no credibility of fiscal and monetary policy, and also the incentives that go with operating in an export-free zone.”

He believes these reforms build confidence for investors looking to enter Nigeria and other African nations. “Nigeria is very good, and the terrain is very good. You need to be bold, but the boldness comes with credibility of policy and the regulatory reform we have seen.”

The Dangote Petroleum Refinery and Petrochemicals is the biggest single-train oil refinery in the world, owned by the Dangote Group. It is located in the Lekki Free Zone in Lagos and was built to produce 700,000 barrels per day (bpd), with plans to increase to 1.4 million bpd.

Recently, the Dangote Petroleum Refinery launched a public offering to sell 4.1 billion ordinary shares. They aim to raise about $1.6 billion to $2.1 billion in what will be Africa’s largest-ever share sale.

The Nigerian government has made reforms in the foreign exchange market, removed what they called a wasteful subsidy system, and put tax changes in place. While global institutions have praised these reforms as good for the country’s finances, many Nigerians are unhappy with the local effects, including high energy prices and a rising cost of living.

At the event in Thailand, Mr Mahmud urged investors to stay interested in Nigeria. “Please come into Nigeria, bring your investment. Nigeria is now a symbol to other African countries; we just got into Kenya with a $20 billion investment in another refinery. It’s a model that is coming from Nigeria,” he stated.

In response, Nigeria’s Minister of Finance and Co-ordinating Minister of the Economy, Taiwo Oyedele, said the feedback shows the effect of the country’s reforms. “Dangote Group, thank you for sharing your testimony. I think the best way to demonstrate that we’re indeed ready for business is to have investors who are already with us give their testimonies.”