The President of Dangote Group, Alhaji Aliko Dangote, has identified Nigeria’s unreliable electricity supply as a major barrier to industrialisation. He stated that running a business in developed countries is 30 per cent cheaper than in Nigeria and other African nations due to stable power availability.
Dangote made this remark while hosting Zambia’s Minister of Energy, Makozo Chikote, at the Dangote Refinery in Lekki, Lagos. He revealed that Ethiopia houses the most profitable Dangote cement factory due to its reliable electricity supply, which eliminates the need for additional power investment.
“One of the biggest challenges in industrialisation is electricity. In Ethiopia, our cement plant has enjoyed a stable power rate for five years, making planning easier. But in Nigeria, we must generate our electricity, which significantly increases costs,” Dangote explained.
Policy Inconsistencies Also a Challenge
Beyond power supply, Dangote also blamed Nigeria’s slow industrial progress on inconsistent government policies. He likened the situation to a football match where the goalpost is moved just as a player is about to score, forcing businesses to adjust frequently.
“One of the biggest problems with industrialisation in Nigeria is policy inconsistency. You make plans, and suddenly the rules change, disrupting investments and growth,” he said.
He emphasized that the government benefits significantly from industrialisation through tax revenues. For example, Dangote Cement contributes 52 kobo of every N1 earned to the government through various taxes, including corporate tax (30%), VAT (7.5%), education tax (2%), and health tax (1%).
The Need for Industrial Growth
Dangote stressed that industrialisation is essential for Nigeria’s economic development. He warned that without stable electricity, businesses would continue to struggle, and the government would ultimately lose revenue.
“Without power, there can be no growth. In developed countries, setting up a factory is plug-and-play. You don’t need to build infrastructure; you just connect to the network. But here, we have to create everything from scratch, increasing costs by about 30 per cent,” he noted.
The industrialist called for urgent reforms in Nigeria’s energy sector and consistent government policies to foster sustainable industrial growth.
