By SpringsNewsNG Media Limited

February 27, 2025

The President of the Dangote Group, Alhaji Aliko Dangote, has attributed Nigeria’s industrialisation struggles to unstable electricity supply.

Dangote noted that operating a business abroad is 30% cheaper than in Nigeria and many other African countries due to the availability of stable electricity in developed nations.

Africa’s richest man made this remark while hosting Zambia’s Minister of Energy, Makozo Chikote, at the Dangote Refinery in Lekki, Lagos State.

He revealed that the group’s most profitable cement factory is in Ethiopia, thanks to a stable power supply.

Electricity: The Biggest Obstacle to Industrialisation

Dangote explained that before venturing into industrialisation, he studied why past attempts—including those of his grandfather—failed. His findings pointed to one major challenge: lack of electricity.

“If there’s no power, there won’t be growth,” he said. “For example, anything I do abroad costs me about 30% less than in Nigeria because developed nations offer a ‘plug-and-play’ system. You simply build a factory and connect to the existing power network. That’s it.”

He cited Ethiopia’s power stability as a major factor in the profitability of Dangote Cement’s operations there. “We didn’t have to invest in power generation. They gave us electricity at a fixed rate for five years, which allowed us to plan with a stable cost.”

Government Policies Also a Barrier

Beyond electricity, Dangote criticised inconsistent government policies, which he likened to a football match where the goalpost is suddenly moved just as a player is about to score.

“One of the biggest issues with industrialisation is policy inconsistency. Just when you’re about to succeed, the government shifts the goalpost. You have to start all over again, facing new challenges.”

He urged policymakers to recognise that industrialisation benefits the government significantly through tax revenues.

“In our cement business, every N1 we generate, 52 kobo goes to the government in various taxes—30% corporate tax, 7.5% VAT, 2% education tax, and 1% health tax. When profits are shared, shareholders still pay 10% withholding tax. That’s just at the federal level. When you add state and local government levies, the tax burden becomes enormous.”

Dangote concluded that industrialisation is essential for national development and that businesses shutting down ultimately hurt the government the most.