Dangote: I'm Worth Much More Than Oprah Winfrey!

the locals are not saying there should be a ban, they are saying  to import, have a stake in local manufacturing, so you have a real interest not just to continue importation but to eventually switch to local production! that is not too much to ask is it?

@Debosky

You're seriously missing the point, whether we will meet capacity tomorrow or in 2010 isn't the point, the point is that there is no need to make me and millions of other Nigerians pay higher price for cement just because it is made in Nigeria. I want to pay the lowest price possible for cement so I can allocate my money to other activities and if that cheap quality cement comes Afghanistan, so be it.

What exactly is the value to me for the cement being made in Nigeria?. . .What is the value to those who work for Ibeto Group who were laid off? What is the value for builders who pay outrageous prices for cement? What is the value to construction workers who those builders are going to employ? What is the value to the people who would have worked to maintain new construction projects by these builders?

The problem with you is that you're extremely short sighted, import industries can and does provide as much employment as local inefficient one. If the importation is even cheaper as in cement, there is then extra money to allocate to other projects to create more employment in other sectors. Cement is a good used to produce other goods, the lower the price of cement, the more of the secondary goods will be produced.

Protectionist policies are rarely in the national interest but in the interest of a few like Dangote. If you start protecting now, when will the protection stop?. . .We both know producers certain countries will always produce cement cheaper than whatever Dangote can do in Nigeria. Protectionism is neccessary because we have people who feel like shielding an inefficient industry will somehow make it more competitive. I beg to differ, shielding an inefficient industry will only make it more inefficient, where is the incentive to innovate when you're guaranteed the market anyway?

Nobody is hung up on Dangote, Donzman is only hung up on senseless policies that I cannot find any economic rationale for. It's the same you that was defending Lagos State Government's policy to levy generator owners!

One comment, the national security thing was ill advised - a result of trying to do too many things at the same time, please pardon the slip of hand 

Granted there are inefficiencies in the system, in the long run, with cheap raw material costs balancing the above average infrastructure costs, I believe local cement prices will be just as competitive as foreign ones, but for the government to have set forth a policy that has brought in over $1 billion in investment to suddenly go against that will not make sense in my view. Full blown importation will not help I insist, some restrictions are necessary to pursue the greater national interest which goes beyond the increased prices currently being faced.

what about the ~$650 million spent importing cement annually? Is that a viable and efficient use of scarce foreign exchange? Donzman I want you to respond to this specifically, you keep mentioning we should 'efficiently' allocate resources. does this fall under that category?

secondly I-man, granted we have an infrastructural inhibition that reduces competitiveness of locally made goods,not as a result of inefficiency on the part of the local producers, and it is only right that they lobby government to do improve infrastructure to make them more competitive, afterall their tax revenues and so on go into the government.  Since we are sub-optimal in production cost, why not just shut down all local production of anything except crude oil extraction since it can all be made cheaper elsewhere? Final price, I accept, is a major and important determinant of policies due to its effects on people's pockets, but it cannot be the only input to a government policy.

Cement is not that difficult to produce locally, the only issue is the lag in investment in the sector due to unfavorable policies/conditions, which is now picking up rapidly, we should not forfeit that benefit because of an immediate price reduction. that does not strike me as short sighted.

Concerning the losses you mentioned, no one is asking the public to bear the cost of the early stages of business, the companies insist that the cement costs 1,100 ex factory, it is the transportation inefficiencies that result in the 300-700 price increment per bag which is simply unacceptable and is wholly beyond the manufacturers purview. the companies are investing, and taking into account the long term nature of their commitments, but those were made  with the consideration that there will be incentives to support their businesses and encourage them to invest, this is why the tie of importation to local manufacturing was made, and not for any sectional interest as you allude.

There is a lot of competition coming up in the market, but you need to put in some temporary measures to ensure investment locally, some of these chinese firms that we import cement from are beginning to set up plants in the country in Cross River and elsewhere because of the drive to support local manufacturing, the costs will come down in the near future - 2010 is not too far for long term planning purposes.

Finally,  there is no way anyone will be projecting cement exports if we they do not see the industry arriving at a stage of cost competitiveness in the near future, if its so expensive that its above import cost in Nigeria, it will not be cheaper if the same cement is sold elsewhere either.

how can a business man compare himself to ophra? , doesnt sound right,  he should compare himself with fellow businesss men, that to me sounds more reasonable

thanks, sale women ,  u should have just said that instead of rapping

I think very seriously that someone like Dangote should be paid less attention.
Firstly, I don't think he is as he claims richer than Oprah. How many Nigerians know their financial worth? How many nigerians have come to declare their worth. How so we know what he really has???
I'm sure if he was asked to define riches he'd go on listin various assets - which I'm very sure we know how he came bout them.

story story story, your stories wont make them poor or miss one kobo from their daily earnings, go find a better way of making yours so people won't spend their useful time saying shit and unmoving words about your money, as far as i am concerned, i am working towards mine, going there, and then people will start talking too, i love it when people waste their time talking about other people's issue, especially money,  bill gate makes $$$$ every seconds, thats why he's getting richer because he is managing his time, i rather play like him

Who cares how much Dangote and Oprah is worth huh?

Am worth more than $5k as of last week and the money keeps coming.

Good luck to us all,
slim

when will this people stop talking other people's biz?

100% Worth Much More Than Oprah Winfrey

When someone else is adjudged rich, no body would raised an eyebrow on that fact, but the moment a Nigerian rates himself far more than a foreigner then problems would surface. A lot on Nigerians still have this inferiority complex in relation to a Whiteman. They feel everything that is good is white, and anything bad definitely has a black color attached to it    . If Dangote boasted that he is richer than Operh, then let it be. We should not create baseless & unfounded excuses that he did not paid his taxes, or he is not philanthropist or he has carpeted all politicians in is pocket. After all even our own Seun boasted that 25 Billion Naira is starting point for anyone interested in buying Nair land. Abi no be so    .

Period

Eh - well done to him - Nouveau riche always boast about how much money they have.