The popular Nigerian adage that says “only he who wears the shoes, knows where it hurts” cannot be far from true.
To many, Aliko Dangote, the Chairman of Dangote Group, being the richest man in Africa is the greatest feat a man can achieve. But you see, not many are aware of the challenges therein.
However, for Dangote, there is more to it than meets the eye, and he has decided to let us all know what has been going on.
According to Dangote, 52 per cent of his company’s income goes to the government.
A whopping 52 per cent? That is more than half of what the company makes.
First, if this happens to be true, then it highlights the tax burden on Dangote Cement Plc and the challenges of doing business in Nigeria.
The Tour
Dangote made this known on Wednesday during a tour of Dangote Fertiliser Limited and the Dangote Petroleum Refinery & Petrochemicals in Ibeju Lekki, Lagos, led by a delegation from the Nigerian Economic Summit Group (NESG).
A statement was issued by the Senior General Manager, Corporate Communications, Esan Sunday, after that tour.
Dangote emphasised the critical role of the private sector in economic growth.
To him, Nigeria’s challenges could be addressed by creating more employment opportunities.
Importation Wahala
He criticised Nigeria’s reliance on imports, pointing out that even developed nations like the United States and China protect their local industries from excessive foreign competition.
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“The concept of a free market should not be used as an excuse for import dependence,” Dangote stated.
Citing an example, he said: “The President of Benin Republic is a personal friend, and my Ibese plant is just 28km from Benin, yet they refuse to allow imports to protect their local industries, most of which are grinding plants.”
Dangote further claimed that the Nigerian government is taking 52 kobo out of every naira generated by Dangote Cement through taxes and other payments.
Government In The Mix
“The government stands to gain substantially when the private sector flourishes. However, 52 per cent of our earnings goes to the government,” he stated.
He also lamented the high cost of setting up industries in Nigeria.
To Dangote, private investors are often left to handle infrastructure development, including power, roads, and ports, which should ordinarily be the responsibility of the government.
