- Dangote attributes Nigeria’s industrialisation struggles to unstable electricity, making business operations more costly than in countries with stable power.
- He criticised the frequent changes in government policies, which he says hinder industrial growth and make it difficult for businesses to succeed.
- Dangote highlighted how taxes from industrialisation benefit the government and urged stable policies to prevent business shutdowns that reduce tax revenues.
Alhaji Aliko Dangote, President of Dangote Group, directly blamed Nigeria’s industrialisation challenges on unstable electricity during a meeting with Zambia’s Minister of Energy, Makozo Chikote, at the Dangote Refinery in Lekki, Lagos.
Dangote explained that businesses operate 30 per cent cheaper abroad than in Nigeria and other African countries because of stable power. He pointed out that the Dangote Group’s most profitable cement factory is run in Ethiopia, where the government has supplied electricity at a fixed rate for five years. “There’s no need for power investments. The government provided stable electricity, making planning easy,” he said.
In contrast, he noted how the group spends heavily on generating electricity in Nigeria. “We invest a lot in power generation for our refinery and factories, which wouldn’t happen in developed countries,” Dangote added.
Dangote also criticised inconsistent government policies, which, according to him, block Nigeria’s path to industrialisation. “The government often shifts policies unpredictably, like moving the goalpost in the middle of a game. Businesses end up restarting, which causes delays,” he stated.
He emphasised the importance of clear and stable policies, explaining that governments benefit directly from industrialisation through taxes. “For every N1 we generate, 52 kobo goes to the government,” Dangote said. He outlined the numerous taxes businesses face, including a 30 per cent corporate tax, a 7.5 per cent value-added tax, and additional levies for education and health services.
He further criticised the high withholding tax on shareholders, explaining that the government collects another 10 per cent in taxes when dividends get paid out. “If you add state and local government taxes, the burden becomes excessive,” Dangote remarked.
The business leader urged the government to maintain policy consistency, warning that business shutdowns harm companies and the government. “When a business closes, the government loses significant tax revenue,” he said, stressing how industrialisation drives national development.
In his concluding remarks, Dangote reinforced the importance of electricity in ensuring economic growth. “Without stable power, there’s no growth,” he reiterated, calling industrialisation the key to Nigeria’s future development.