By Amos Adetunji
Aliko Dangote is fighting the battle of his life again and the heat may consume his long time and towering image as some controversies around him continue unabated. To some, particularly his critics and those in the same line of business, this well-known Nigerian billionaire, shrewd businessman and disruptor-in-chief, has allegedly taken sharp business practices and bad faith to a new height. But he has his supporters too who believe he is a patriot extraordinaire
Dangote As A Rogue
Once in a while, Aliko Dangote is always in the eye of the storm for unethical business behaviours .Not quite long ago a no nonsense online newspaper, Premium Times ,nailed him a tax dodger. The Africa’s richest man, Dangote and his brother, Dantata were linked to shell companies in tax havens. According to internal data of the Panama-based offshore-provider, Mossack Fonseca, obtained by the German newspaper Süddeutsche Zeitung and shared by the International Consortium of Investigative Journalists (ICIJ) with PREMIUM TIMES and over 100 other media partners in 82 countries, Mr. Dangote, his relative, Sayyu Dantata, as well as his business allies had over the years used shell companies domiciled in controversial tax havens in their business transactions. The unprecedented year-long investigation involving 11.5 million secret documents – which stretched from 1977 to December 2015 – exposed the hidden underground of the world economy, a network of banks, law firms and other middlemen that utilize shell companies, sometimes using them to hide illegal wealth.
Asides this , the fact that Dangote Group was allegedly a major beneficiary of duty waiver, the privilege he gained from his closeness to the seat of power, makes his critics to be uncomfortable with him and to tag him a bloody rogué . In the time past, there were unconfirmed reports that Dangote allegedly got a concession of five per cent for raw sugar and exemption from payment of the ten per cent sugar levy. The exemption was said to be ongoing and has no expiration date. Dangote was also alleged to have a two-year concession from payment of duties on the importation of tomato paste
.At another time , with his frivolous style of jerking up the cement price , Dangote was tagged an exploiter extraordinaire .Not a few are unhappy with this man of money that loves ,prospers and lives in monopoly . For this tendency ,a Nigerian comedian known with the stage name: Ambassador had called out Aliko Dangote, Africa’s richest man.
In a video making the rounds on social media then , Ambassador described Dangote as a very wicked businessman who takes advantage of people everyday for his own selfish and personal gains. According to this angry comedian, it is immoral and utterly disgusting for one single person to own and control the cement market in a country of many enterprising people like Nigeria.
“There is no Nigerian that will be given the opportunity that Dangote has that will not be the richest man in the world. Only one person is supplying cement to over 200 million Nigerians. No wonder he slept and woke up one morning to increase the price of cement from 2,500 to 5,000 naira which is over one hundred percent increase.”
He accused Dangote of impoverishing and oppressing Nigerians with his monopoly. He also described him as a ruthless businessman who does not care about the suffering of common Nigerians.
HIS LATEST CONTROVERSY
Tough times are here again for Aliko Dangote , the Africa’s richest man. This billionaire and philanthropist who is fighting for his life on multiple fronts may never be the same again after now. But the tragic part of Dan gote’s ordeal is that his problems are multifaceted and complicated. Now, the business mogul’s problems have been exacerbated by Godwin Emefiele, Nigeria’s embattled former governor of Central Bank and Dnagote’s buddy. The former CBN boss who has been singing like a canary in recent times, is allegedly showing the world the other side of Dangote’s vast business empire and his unorthodox ways of doing business.
Emefiele who is currently standing trial for many financial offences compounded his personal woes when it was discovered that that top banker allegedly lodged public funds in foreign currencies and accounts in more than 593 bank accounts. These accounts, it was discovered, are in many foreign countries like the United Kingdom, the United States of America and China. It was also discovered that the former boss of the apex bank in Nigeria allegedly deposited 543, 482, 213 pounds in fixed deposits in UK banks alone. And these transactions were brazenly carried out without due process. It is clear that Emefiele did not have act alone in all the financial malfeasance associated with him in his years as governor of the Central Bank of Nigeria.
Recently, the troubles of the former apex governor and his co-travelers were made worse with the decision by the powers that be in Abuja to probe forex allocation forms between 2014 and 2023. And part of this latest investigation of forex deals covers alleged abuse of foreign exchange allocations and the preferential treatment the billionaire businessman, Aliko Dangote, received during the years under review.
As things currently stand, Dangote will be answering many questions from the Economic and Financial Crimes Commission, EFCC. And the EFFCC appears not to be leaving any stone unturned in this all-important investigation to get to the root of the matter. From the look of things, many Nigerians are already showing some excitement because a number of people in this so-called giant of Africa are anxiously looking forward to the end of sacred cows and special ones, both in politics and business. So, recently when the top anti-graft agency raided the headquarters of Dangote Industries Limited in Ikoyi Lagos, many people saw it as a welcome development. Although some of the documents were allegedly carted away during the invasion, Dangote will still answer many questions on his refusal to explain his position in the alleged abuse and preferential treatment he received the forex allocation in the days to come.
Dangote is in a very big trouble, and this is an incontrovertible fact. Perhaps Dangote’s burden would have been lessened if he had played by the rules of reciprocity and the principles of one good turn deserves another. And it appears the businessman is now paying dearly for snubbing the ex-CBN governor whose family reached out to him for intervention over his incarceration and trial. If self-preservation is still the first law of nature, then the former CBN, being a troubled man, may be excused on some grounds. From facts available, the suspension and subsequent arrest and trial of Emefiele on June 9, 2023, followed a chain of events. However, it would be recalled that the banker’s ordeal actually began on April 24, 2023, with his scandalous borrowing of $1 billion shortly before the inauguration of President Bola Ahmed Tinubu.
Surprisingly, in less than three days after receiving the money, Emefiele allegedly immediately transferred $750 million to Aliko Dangote’s Bluestar Dubai account using Form A Transaction. Since the news broke, Nigerians have in a state of shock, not necessarily because of the brazenness, but for the callousness of the number one banker and his cohorts. Naturally, the illegal transaction raised the issues of business ethics, professionalism, abuse of power, collusion and integrity. It was bad enough that a financial crime had been committed but the fact that the president-elect was not in the know of the deal was like rubbing salt in the wound. The transaction was everything bad and more, including money laundering and illicit activities of the highest level in Nigeria’s apex bank.
Hassan Abu, a bureau de change operator somewhere in Ikeja Lagos, described Dangote and a greedy and selfish man who cares only for his mouth and pocket. “I am Hausa-Fulani but Dnagote is a very strange man. He has nothing in common with us his people, and that is why many of us don’t like him. We now know why he remained Africa’s richest man for many years. As a people, we know that he has been away for too long, so his behaving like other shrewd business men from other parts of Nigeria who are his friends and business associates. All they care is about themselves and their personal interests. Who would not be Africa’s richest man if governments make laws and grant waivers and other considerations that are favourable to one man in a country of over 200 million people?”, he asked.
But Dangote is naturally a man who brooks no opposition or competition in his business operations, whether here in Nigeria or in other African countries where he is already making inroads. He is also an astute fighter in the business arena, and everyone knows. Unfortunately, he takes no prisoners in all his battles, that is why many people are afraid of him. So, most businessmen, whether in manufacturing, oil and gas or even trading and merchandizing, are afraid to cross path with him. But he has endured and succeeded as a billionaire monopolist because he enjoys government patronage more than any other businessman in Nigeria today. At Nigeria’s ports for example, it is a well-known fact that Dangote enjoys considerable advantages and undeserving waivers on his importation businesses. Therefore, it is no secret that this billionaire philanthropist has the edge in every business transaction, and this advantage has kept his competitors on the run for over two decades. In addition, Dangote fights to finish, that is why many businessmen in his industry are always afraid of him. For instance, during the tenure of Chief Olusegun Obasanjo, Nigeria’s former president, Dangote enjoyed unprecedented advantage that even outlived Obasanjo’ regime. For those who still remember, when the former president encouraged the local manufacturing of cement, the management of Ibeto Cement took advantage of that and promised to flood the Nigerain market with his high brand product, and also crash the price of cement. Unfortunately for Dangote Cement, the crash in price inspired by Ibeto adversely affected his exclusive sale because of the unexpected switch by people who wanted a cheaper cement. But this did not go down well with Dangote who detested Ibeto Cement’s dramatic re-entry into a market he had dominated for many years. Eventually, Dangote wrote a petition to Obasanjo, and kicked against the authority granted Ibeto to import eight hundred thousand metric tons of cement into the country. Sadly, the former president issued a directive that banned Ibeto from importing cement, a move that increased cement price and rendered hundreds of Ibeto Cement staff jobless. But Dangote on the other hand, was allowed to import cement even when he had not proved his investment in local production. The status quo remained until 2007 when Umaru Yar’Adua succeeded Obasanjo as president. Again, Ibeto applied for import allocation in July of that year and it was granted. For a second time, Ibeto flooded the market and the prices of cement came down again.
But a few weeks after Ibeto’s return to the cement market, Dangote accused the company again in a suit where he claimed that Ibeto had an undue advantage in the market. But this time around, the federal government saw through Dangote’s plot to create a monopoly for himself in a liberal market. To further consolidate his position, Ibeto filed a term of settlement which he entered as consent judgement in the suit. This judgement further stated that Ibeto would continue to import 1.5 million metric tons of cement every year. This was in line with a letter by the Ministry of Trade and Investment. By the judgment, the federal government was to pay Ibeto Cement $40 million and 1.5 million naira which were varied claims of the damage it suffered over the years his plant was idle. However, Ibeto took the business to another level when it signed a contract agreement of $368 million with a Chinese company to produce 600 metric tons of cement with many adjunct benefits from the agreement. At this point, Dangote became jittery with all the developments around Ibeto and decided to sink Ibeto, and he succeeded. For instance, under the President Muhammadu Buhari, Ibeto was denied his application for foreign exchange at the Central Bank of Nigeria while Dangote’s application was granted. Dangote also enjoyed other benefits that were not available to other businessmen like Ibeto under the Buhari administration.
Like yesterday, Dangote continues to enjoy all manner of support and waiver in a country that has many industries and businessmen like him. And from his trajectory, he is prepared to sink any company or person who stands between him and the monopoly he has been allowed to practice excessively for many years. But Ibeto is not the only one that has come face to face with Dangote’s furious fire and unorthodox business practices.
Dangote has expanded his businesses outside the shores of Nigeria but he fought the Vaswani Brothers, (Indian-born Nigerian billionaires) many years ago, until they ran away. Dangote is also the nightmare of Abdul Samad Isyaku, the Nigerian billionaire businessman, philanthropist and owner of BUA Cement Company. But the truth is that Dangote hates competition, and he is ready to take down anyone or business in his way, regardless. As a matter of fact, he is a fighter who loves, lives and enjoys monopoly.
So why is Dangote so special, powerful, influential and ruthless? Is it possible for this billionaire to have operated optimally in all these years without the monopoly he enjoys? Why is Dangote one of the privileged few that enjoy endless tax holiday in Nigeria? Why does he enjoy uninterrupted flow of loans from the federal government? Why is he also the only one who enjoys government support and goodwill in the oil and gas sector? His refinery in Lagos is not just the first of its kind in Nigeria, the loans and support to that venture is also unprecedented in the history of oil and gas business in Nigeria, why? The questions are endless, and this is understandable because of the billionaire unchecked powers, unbridled influence, silent operations and his larger-than-life image in Nigeria. Dangote’s trouble today is an indication that he is not invincible or as powerful as many had believed, but there is no doubt that he derives his enormous powers as alleged from his powerful connections in the political arena. He has been openly accused of supporting former Nigerian leaders financially on many occasions. There are also those who allege that he is a proxy to the ill-gotten wealth of many political leaders, both past and serving politicians in Nigeria.
It is good that Dangote, a sacred cow and the special one, is facing the law and a country he had milked for many years but it may be too early in the day for Nigerians to celebrate. This change, if it is real, has been a long time coming. So, as some Nigerians cheer up at the prospect of a new dawn, they should also bear in mind that nothing is over until it is over.
Dangote As A Patriot
However , despite the litany of allegations raised above , to some people Aliko Dangote patriot extraordinaire ,a quintessential manufacturer, entrepreneur and all-time businessman .
For this group of individuals ,at the root of Dangote’s investments and interest in a better Nigeria, is patriotism. They believe ,clearly, nationalism and profit drive his cement company, refinery and many other businesses. By their thinking , he has remained Africa’s richest man by dint of hard work, dedication, bold and honest application of knowledge and resources, ability to innovate and his penchant for excellence. Dangote also has the reputation for always grabbing his chances and this has paid off handsomely.
Today , with Dangote’s intervention in cement manufacturing in-country, theey declared Nigeria is no longer import dependent. Aside this, his giant stride is saving foreign exchange for Nigeria and positioning the country for great exploits. Dangote is also building one of the biggest refineries in the world, here in Nigeria. And his incursion into the oil and gas sector is a great news that gladdens the heart of everyone. It also brings to question, the activities of big foreign oil majors in Nigeria who did not deem it necessary to build refineries to refine the crude they have exploited for over 60 years.
Again, out of patriotism, Dangote has created, and he is still creating thousands of jobs across the length and breadth of Nigeria and even beyond. In addition, he is empowering people and creating new business frontiers for now and the future. And it is obvious from every indication, that this manufacturer is deliberately opening up Nigerian villages and towns with his products that are visible in every household irrespective of social status.
For the government and the people of Nigeria, the gains from Dangote’s many business interests are immeasurable. For instance, his refinery has the potential to unleash wealth and more employment opportunities with byproducts from crude oil. With his interventions, Nigeria is also going to experience a new lease of life from foreign direct investment. Added to this is a predictable economy and a Naira that will become stable and respected in due course.
