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Dangote’s Business Strategies Bad For Nigerian Economy
The United States has said the business tactics of Dangote Group of Companies’ are harmful to Nigeria’s economy as they stifle healthy competition and hamper growth.
Owned by Africa’s richest man, Aliko Dangote, it is the largest conglomerate in West Africa with over 30,000 employees.
American government said despite his unadulterated massive wealth acquisition, Dangote represents the duality that Nigeria’s economy has become known for, noting that the duality has left the country in catch-22 situation in terms of economic policy formulation.
“Although an undiluted success in terms of wealth accumulation, Dangote personifies the duality in Nigeria’s economy,” the American government said while maintaining that the duality “presents a dilemma for country’s economic policy.”
It accused Dangote Group of obstructing investment that the company may see as major competitors and could whittle down its monopoly and grip on particular sector of the country’s economy
It averred that “Weighing everything in the balance, we believe the Dangote model is harmful to Nigerian and American interests in the long run.”
The American government further warned, “Unfortunately, the Dangote model will likely be the one most emulated until its beggar-thy-countrymen contradictions become more apparent.”
It is safe to say the assertion of the U.S. government has been evident in some of the questionable tactics employed by the conglomerate.
Dangote Group have come under intense, pervasive opprobrium in the past years over what social commentators, business analyst and other observers described as favouritism from the Nigerian government.
The company faced backlashes after it called for a total ban on tomato importation in 2019 when it started its tomato processing subsidiary.
Dangote’s Refinery in Ibeju Lekki, Lagos
Barely two weeks ago, in what appears to be a calculated move to tighten its grip and exert its influence on the lucrative oil and gas sector, the conglomerate proposed a provision in the Petroleum Industry Bill (PIB) seeking to ban the importation of oil by companies without refining licences, which according to the company.
According to the conglomerate, such ban will boost investments in Nigeria’s oil and gas industry.
Dangote also recommended that the volume of fuel imported should be distributed according to what each refinery produces.
A report published in 2010 on Wikileak’s website said even though Dangote is major player in Nigeria’s economy, “many products on the country’s import ban list are items in which it has major interests”.
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