A World Bank Group’ Senior Economist, Samer Matta, want Nigeria to create a more conducive business environment to attract investors into the country.
He spoke at the Major Marketers Association of Nigeria(MEMAN) quarterly Webinar with the theme “Fair and Healthy Competition,”
The world bank Chief noted that businesses policies in most sectors of the economy do not allow for healthy competition.
In his presentation titled “Catalysing Competition in Nigeria” he pointed out that monopolies and market concentration remained pervasive in key Nigerian econimic sectors.
According to him, in the market-based competition table for 2024, Nigeria ranked lowest, trailing behind others countries like Egypt, Ghana, Indonesia, India and South Africa.
He said government protection does not promote refining efficiency nor does it deliver benefits to consumers.
Refineries, he said, should be exposed to vigorous competition, warning that allowing only refineries to import products would not eliminate competition from imports.
“The policy of allowing domestic refineries to supply the domestic market first and allowing imports only when there is a shortfall also goes against competition policy as contained in section 317 (9) in the PIA is misguided,’’.
On his part, MEMAN’s Executive Secretary, Clement Isong, said that despite claims of self sufficiency in local refining capacity, importation of petroleum products was still fully in force.
“While MEMAN members and other operators in the downstream sector currently patronise Dangote Refinery, fuel imports still remained an open option.”
He added that stakeholders were fully in support of the Dangote Refinery and would always support the business to succeed.
On the rollout of 4,000 CNG trucks By Dangote Refinery, Isong said this remained a welcome development because CNG reduces logistics cost by about 40 per cent.
He noted that CNG being a policy of the Federal Government should be embraced by all stakeholders because it would go a long way in cutting cost of transportation.
The MEMAN Executive Secretary said the Association was already working on the adoption of CNG trucks.
He however, said the association was currently studying the CNG rollout initiative of Dangote Refinery and would make comments at the appropriate time.
“There are a lot of things that are not yet clear about the initiative and it would be too hasty to make comments at this time. We are studying the situation and when we are fully clear, we would make our interventions,”
We are watching the trend and also trying to understand what the impact would be on the market because that requires a lot of discussions, which would involve Dangote and other stakeholders.
“We are not clear if there would be an equalization policy; meaning the price would be the same across the country, he said
