The United States described the Dangote Group of Companies’ business strategies as disastrous to the Nigerian economy.
Owned by Africa’s richest man, Aliko Dangote, it is the largest conglomerate in West Africa with over 30,000 employees.
A report published in 2010 on Wikileak’s website said even though Dangote played a major role in Nigeria’s economy, “many products on the country’s import ban list are items in which it has major interests.”
“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 blocking investment that the corporation may additionally see as foremost competitors, noting that “Weighing the whole thing in the stability, we believe the Dangote version is dangerous to Nigerian and American pursuits in the end.”
The American authorities similarly warned, “Unfortunately, the Dangote version will possibly be the one most emulated until its beggar-thy-countrymen contradictions come to be greater apparent.”
It is secure to mention the assertion of the U.S. Authorities has been obtrusive in some of the processes hired with the aid of the conglomerate.
Dangote Group confronted extensive criticisms in the beyond years over what detractors defined as favouritism from the Nigerian government.
The enterprise confronted backlashes after it known as for a complete ban on tomato importation in 2019 while it began its tomato processing subsidiary.
Barely two weeks ago, the conglomerate proposed a provision inside the Petroleum Industry Bill (PIB) searching for to ban the importation of oil by way of groups with out refining licences, which in keeping with the agency, will assist spur investments in Nigeria’s oil and fuel enterprise.
Dangote also recommended that the quantity of gasoline imported must be allotted in keeping with what every refinery produces.
Aliyu Suleiman, a prime strategist at Dangote, suggested the anti-competition approach at some point of a visit through contributors of the National Assembly’s joint committee on PIB to the enterprise’s mission website.
The group proposed that simplest agencies with licences to refine crude oil must import gasoline each time demand surpass to be had fuel or whilst a refinery is present process protection.
The advice came on the time Dangote Group turned into on the verge of completing a 650,000 barrels-consistent with-day refinery in Lagos.
Financial professionals, however, said the Dangote refinery should now not be allowed to become a monopoly inside the way of the country-run NNPC, although it remained unclear how the conglomerate might be averted from conserving a monopoly if the arguable clause makes it into the PIB.
This is also obvious within the reopening of land borders to Dangote Group in November ultimate 12 months, whilst it turned into allowed to move its merchandise to neighbouring West African international locations.
Nigeria had shut its land borders in August to give room for the intake of domestic-grown products, however the access granted to the employer changed into stated to be based totally on an authorisation issued by means of the President Muhammadu Buhari-led administration.
A businessman and founding father of Stanbic IBTC, Atedo Peterside, faulted the circulate.
He asserted that it portrayed Nigeria’s financial system as favouring most effective the nicely-linked.
“Allowing legitimate exporters and importers to transport their items across the border should be a no brainer,” Mr. Peterside stated in a tweet.
“Why refuse anybody else and permit most effective one company (Dangote)?”
He introduced, “This is why some of us argue that the Nigerian economic system is rigged in favour of a handful of nicely-related people.”
A spokesman for Dangote Group Tony Chiejina declined repeated requests for a response to the damning allegations, insisting alternatively that our reporter ought to go to him on the employer’s headquarters in Lagos earlier than comments can be provided.
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