In one of the most scathing articles you can read online on, an analysts and frequent contributor to Nairametrics, Feyi Fawehinmi on loaded on Aliko Dangote, the richest man in Africa.

In the opinion editorial which was featured on QZ.Com he explained reasons why he believes the billionaire may be exerting an unhealthy influence on the government, the economy and at large, the lives of average Nigerians.

In effect, he opines that despite all the hype around him, Dangote is bad for Nigeria.


Here are some of his key taking points;





In one of the most scathing articles you can read online on, an analysts and frequent contributor to Nairametrics, Feyi Fawehinmi on loaded on Aliko Dangote, the richest man in Africa.

In the opinion editorial which was featured on QZ.Com he explained reasons why he believes the billionaire may be exerting an unhealthy influence on the government, the economy and at large, the lives of average Nigerians.


In effect, he opines that despite all the hype around him, Dangote is bad for Nigeria.

Here are some of his key taking points;

Dangote has made more than 90% of his wealth from the cement industry. He currently has a 65% market share meaning that in effect, he decides what the price of cement in Nigeria is.
The gross margin on Dangote’s cement was as high as 70% a few years ago and has slowly come down to just under 50% in 2016.
While average cement profit margins around the world was 17.2% in 2015, Dangote reported a 42.3% margin, almost 3 times more than the global average.
In 2013, Dangote cement had the highest net profit margin among the world’s top 15 cement producers (52%). The next most profitable producer had only a 17.8% margin.
Despite these statistics, the monopoly is set to continue. Dangote has 90-year mining licenses for materials like limestone even though its cement plants have a 50-year life span. So, he can afford to mine limestone for the rest of his life without paying a single kobo extra to the FG.
For those who are usually swept away by the ‘keep-Nigerian-money-in-Nigeria’ anthem Dangote sings, you’d be surprised that the FG is making so much of a public gain from Dangote’s activities.
Between 2010 and 2015 when Dangote cement earned around 1 trillion naira in profits, it paid only 12 billion naira in taxes, just a 1.2% tax rate.
This is due to “Pioneer Status”, a Nigerian arrangement that is supposed to encourage investment in industries which the Nigerian government deemed in need of support.
How Dangote’s three cement plants can claim pioneer status 10 times in 11 years within the same industry is baffling.
All in all, what Dangote has contributed to Nigeria through his cement factories are a lack of innovation, very few jobs, little addition to government revenue. And billions of dollars into the Dangote coffers.
Basically, in his opinion Dangote is bad for Nigeria.

https://nairametrics.com/analysts-explains-aliko-dangote-is-bad-for-nigeria/

Hmmm

nairametrics:
In one of the most scathing articles you can read online on, an analysts and frequent contributor to Nairametrics, Feyi Fawehinmi on loaded on Aliko Dangote, the richest man in Africa.

In the opinion editorial which was featured on QZ.Com he explained reasons why he believes the billionaire may be exerting an unhealthy influence on the government, the economy and at large, the lives of average Nigerians.

In effect, he opines that despite all the hype around him, Dangote is bad for Nigeria.


Here are some of his key taking points;



READ MORE: https://nairametrics.com/analysts-explains-aliko-dangote-is-bad-for-nigeria/


Cc:@lalasticlala

Whats the margin of other cement producers?
What was the margin before the advent of Dangote Cement.
Dangote Cement is actually the only cement firm that periodically reduces price.
Other companies enjoy pioneer status also in other areas of the economy.
Dangote is an African champion and he should be encouraged and not castigated.
People should not sit in the comfort of homes and offices of employment and criticize people who stake their lives in the uncertainty of self employment

No be lie

nairametrics:


https://nairametrics.com/analysts-explains-aliko-dangote-is-bad-for-nigeria/

of course

only a zombie wont know this

been like this in nigeria..always the north oppressing the south

97% always always

dangote trucks kill people anyhow and nobody will dare say anything

Monopoly is always bad.

Dangote only thrives in monopolies where he controls production, distribution and exchange.

In 2004, there were rumours of poisoned Indomie Noodles. Not too long after, Dangote introduced his horrible-tasting Noodles into the market.

A few years ago, the guys at Standards Organization of Nigeria were shamelessly marketing Dangote's 3X cement. This is irrespective of the fact that it's not proven to set faster or be stronger than others.

Dangote's monopoly is not even felt now, wait till he's the owner of the only functional refinery in Nigeria. That's when Nigerians would smell pepper. If you doubt me, how much was sugar and cement before Dangote's monopoly, how much are they now?

The reason Dangote succeeds is because there is no Anti-Trust and Competition Law in Nigeria. The day we have Competition Law in Nigeria, Dangote is finished. How would someone buy up cement companies and shut them down because you don't want them to rival your inflated priced cement?

Unfortunately, the leading expert on Competition Law in Nigeria with a PhD in Competition Law from the UK was made a Federal High Court Judge in 2016. Today, he's in Abuja trying money laundering and anti-corruption cases.

Mtcheeeeeew

Baseless!

Nice points you got there but most Nigerians don't know and those who know can't do a bleep while those responsible and capable to check mate this are not concerned because they know their own gain.

Dangote is North and that's all that matters

I remember when he started pushing the government back in 2014 to ban all cement producer not able to produce 42.5 grade cement just so he could further get some of his competitors out of business.

And trust the SON guys to rise to the occasion after receiving brown envelopes.

Enter the market and compete with him. While i agree that federal government policies favour Dangote,he has had his fair share of problems too. I must commend a good business man he is. During PDP era,he aligned with the government,same now APC is there.

Bad belle pple everywhere

bad belle people full everywhere

I've never been a fan of this guy

Aliko Dangote symbolizes monopoly in its purest form.

u are rat not right

obua:
Whats the margin of other cement producers?
What was the margin before the advent of Dangote Cement.
Dangote Cement is actually the only cement firm that periodically reduces price.
Other companies enjoy pioneer status also in other areas of the economy.
Dangote is an African champion and he should be encouraged and not castigated.
People should not sit in the comfort of homes and offices of employment and criticize people who stake their lives in the uncertainty of self employment

Dangote is a champion.
Typing live from Obajana.

morikee:
W

IgedeBushBoy:
E

MrMcJay:
Typing

it will do u more harm than good

Without monopoly, wealth cannot be concentrated to a level
at which capital-intensive projects can be undertaken.

Sir if you can get Nigerian just 1 billion in tax i will believe you

Only talk you sabi Afoja man like you

MrMcJay:
Typing

What exactly are you typing?

Insightful, sometimes I feel Nigeria made a very wrong deal with him on cement issue. imagine a 90yrs mining license, that's extremely terrible.
They all come as compensation from different presidents.

Ok

I've never liked him, his facial expression is deceptive and is fooling.

See them o