ThierryJay:
With all due respect, it's obvious there are things you are not aware of behind the scenes.

Who told you there are no peculiar benefits or restrictions given to Dangote and co? Are you aware that local sugar production was only licensed to Dangote, BUA and Flour Mills in the whole of Nigeria? meaning even if you have the money you can't play directly in this sector.

Are you aware that Dangote and BUA got pioneer status incentive (5 year tax holiday) for Cement in 2017 even when cement was not on the approved pioneer list. This was issued and approved directly by Abba Kyari.

Say only what you know oga. Being a realist is not an excuse for ignorance of the implications of established facts.

For me, this is not an ethnic matter but an ethical matter from Government perspective. Regulating the refinery sector is not punishment but commonsense. Will you say NCC is just punishing the successes of MTN, Glo and Co.?

I am reasonably certain NEITHER OF US are aware of what’s happening “behind the scenes” (otherwise, it wouldn’t be behind the scenes)...

People keep using the term license as if it is a restriction, but it’s merely the most basic of administrative processes. In other words, to do business anywhere in almost any industry, one has to be registered or licensed. The more substantive point is that sugar production in Nigeria is NOT restricted to only Dangote, BUA and Flour Mills. Have ever heard of Josepdam? The Josepdam Group used to produce sugar from the old Bacita Sugar Company in Kwara State, until AMCON took over control of its operations a few years ago on account of its many non-performing loans. Nigeria imports probably over 80% of its sugar requirements, that as recently as last year (just prior to the pandemic), the Sugar Development Council was marketing 11 potential new sugar production sites to foreign and domestic investors. At the moment, both the Bank of Industry and the Bank of Agriculture each have a dedicated single-digit interest rate loan program dedicated solely for potential investors in sugar production. Accordingly, it is quite ridiculous for anyone to classify sugar production in Nigeria as restricted.

I suspect that some folks are confused about the sugar Backward Integration Program (BIP). The BIP applies to companies that were already refining raw sugar in Nigeria. These companies previously imported raw sugar (principally from Brazil) and then refined them locally. Under the BIP, the government decided to incentivize to backwardly-integrate. In other words, to grow raw sugarcane, process and refined it domestically, and in the process save the MILLIONS of foreign currency that is expended on the importation of raw sugar which props up foreign producers and foreign jobs, and to create TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS along the entire sugar production value chain. When the BIP was initiated there were only three sugar refiners in Nigeria - Dangote, BUA and Flour Mills (Golden Sugar) - and these companies therefore became part of the program. Pretty certain that if/when there are new/additional refiners, they will similarly enjoy the same BIP incentives (tax, etc.).

Furthermore, on the subject of Pioneer Status Incentive (PSI), where on earth did you get the idea that it is peculiar or special to Dangote and BUA? In the most recent PSI Report issued by NIPC (Nigeria Investment Promotion Commission) in November 2020, covering the period ended Q3 2020, Lafarge (the other major cement producer in Nigeria, and of course part of the world’s BIGGEST cement producer) also enjoys PSI incentives, along with at least 37 other businesses across different sectors and industries (with reportedly up to 60 or so applications in process). Accordingly, it is either disingenuous or plain dishonest for folks to posit that Dangote and BUA are being accorded preferential treatment in this regard. The PSI merely seeks to incentivize investors to take the considerable risk (security, political, business and such other risks) of investing in Nigeria, and lessen their tax burden in reward for creating TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS!

Finally, as I noted elsewhere, Dangote Cement, Dangote Sugar, BUA Cement, and Flour Mills are all PUBLICLY-LISTED on the local bourse (the NSE), and if folks truly believe they are rolling in it, simply go buy their shares and share in both the RISKS and rewards!
>

jaxxy:

It’s was higher b4

Same as cement then, which was higher before!

Funny thing is that when Dangote Cement reduced its cement prices, the other companies complained that it was trying to drive them out of business to enjoy a monopoly Nigeria - you do they wail, you don’t they wail. SMH
>

9jaRealist:


Same as cement then, which was higher before!

Funny thing is that when Dangote Cement reduced its cement prices, the other companies complained that it was trying to drive them out of business to enjoy a monopoly Nigeria - you do they wail, you don’t they wail. SMH
>

Lies bro. If dangote ever sold cheaper Nigerian would be fully supporting him now.

ThierryJay:


With all due respect, it's obvious there are things you are not aware of behind the scenes.

Who told you there are no peculiar benefits or restrictions given to Dangote and co? Are you aware that local sugar production was only licensed to Dangote, BUA and Flour Mills in the whole of Nigeria? meaning even if you have the money you can't play directly in this sector.

Are you aware that Dangote and BUA got pioneer status incentive (5 year tax holiday) for Cement in 2017 even when cement was not on the approved pioneer list. This was issued and approved directly by Abba Kyari.

Say only what you know oga. Being a realist is not an excuse for ignorance of the implications of established facts.

For me, this is not an ethnic matter but an ethical matter from Government perspective. Regulating the refinery sector is not punishment but commonsense. Will you say NCC is just punishing the successes of MTN, Glo and Co.?

I alos listed that he was allowed to keep exporting his products BY LAND BORDER, when other manufacturing concerns were writhing in financial pains of the over the recent, One year border Closure!
Is that not an example of the exclusivity he enjoys that others dont?
Most people comment based on the 'surface' information they are privy to but they also need to understand the complexity of Nigeria and its business ethics or lack of one thereof.

Thank you for shedding light on the issue, from that angle

9jaRealist:


I am reasonably certain NEITHER OF US are aware of what’s happening “behind the scenes” (otherwise, it wouldn’t be behind the scenes)...

People keep using the term license as if it is a restriction, but it’s merely the most basic of administrative processes. In other words, to do business anywhere in almost any industry, one has to be registered or licensed. The more substantive point is that sugar production in Nigeria is NOT restricted to only Dangote, BUA and Flour Mills. Have ever heard of Josepdam? The Josepdam Group used to produce sugar from the old Bacita Sugar Company in Kwara State, until AMCON took over control of its operations a few years ago on account of its many non-performing loans. Nigeria imports probably over 80% of its sugar requirements, that as recently as last year (just prior to the pandemic), the Sugar Development Council was marketing 11 potential new sugar production sites to foreign and domestic investors. At the moment, both the Bank of Industry and the Bank of Agriculture each have a dedicated single-digit interest rate loan program dedicated solely for potential investors in sugar production. Accordingly, it is quite ridiculous for anyone to classify sugar production in Nigeria as restricted.

I suspect that some folks are confused about the sugar Backward Integration Program (BIP). The BIP applies to companies that were already refining raw sugar in Nigeria. These companies previously imported raw sugar (principally from Brazil) and then refined them locally. Under the BIP, the government decided to incentivize to backwardly-integrate. In other words, to grow raw sugarcane, process and refined it domestically, and in the process save the MILLIONS of foreign currency that is expended on the importation of raw sugar which props up foreign producers and foreign jobs, and to create TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS along the entire sugar production value chain. When the BIP was initiated there were only three sugar refiners in Nigeria - Dangote, BUA and Flour Mills (Golden Sugar) - and these companies therefore became part of the program. Pretty certain that if/when there are new/additional refiners, they will similarly enjoy the same BIP incentives (tax, etc.).

Furthermore, on the subject of Pioneer Status Incentive (PSI), where on earth did you get the idea that it is peculiar or special to Dangote and BUA? In the most recent PSI Report issued by NIPC (Nigeria Investment Promotion Commission) in November 2020, covering the period ended Q3 2020, Lafarge (the other major cement producer in Nigeria, and of course part of the world’s BIGGEST cement producer) also enjoys PSI incentives, along with at least 37 other businesses across different sectors and industries (with reportedly up to 60 or so applications in process). Accordingly, it is either disingenuous or plain dishonest for folks to posit that Dangote and BUA are being accorded preferential treatment in this regard. The PSI merely seeks to incentivize investors to take the considerable risk (security, political, business and such other risks) of investing in Nigeria, and lessen their tax burden in reward for creating TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS!

Finally, as I noted elsewhere, Dangote Cement, Dangote Sugar, BUA Cement, and Flour Mills are all PUBLICLY-LISTED on the local bourse (the NSE), and if folks truly believe they are rolling in it, simply go buy their shares and share in both the RISKS and rewards!
>

Your submissions would have been spot on if the schemes were working in practice exactly as you have stated up there in principle/theoretically. I don't want to believe you will be that naive as to believe all Nigerian businesses have equal opportunity to access Government support. The author of the initial write-up has exposed the problems beleaguering the sugar BIP scheme, how it is not delivering on its initial objectives. Bag of local sugar is now N25,000 which is not much different from the price of imported sugar. So how has the scheme saved Nigerians cost in this regard as you are touting in principle?

I did not say only Dangote is enjoying PSI in Nigeria - read well. First, PSI is given only for approved products. When Dangote got his PSI for cement in 2017, cement was not in the approved list of pioneer products. Basically, to grant PSI for cement was illegal as cement was a mature industry by that time. That was why he had to go directly to the Presidency (Abba Kyari) and not through NIPC as there was no legal basis for NIPC to grant the incentive. Is that not leveraging cronyism or preferential treatment? Lafarge (UniCem) got wind of this and also approached the Presidency who could not deny Lafarge since they had just given Dangote. That's what happened. Giving PSI for cement to Dangote and co actually made Nigeria lose tax revenue as the sector no longer needed incentivization which was why it had been removed from the pioneer list.

9jaRealist:



Bros, if you have billions of dollars to build a refinery (or cement or sugar plant), get at it!

There are NO laws preventing, precluding or prohibiting anyone from doing so...
So let’s quit the petty Nigerian thing of punishing success (while rewarding failure).
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Thx my bro. I claim the £1b firstly in Jesus name.
Bros some of us are very contented not to envy success which us the reason why we were able to retire in our 50s.
Now the written piece is about the decay of once- functioning firms bought over by privileged few. How they use it as platform to build more wealth for themselves to detriment of the larger populace. How oligarchs and capitalist in government see these privileged few as trusting partners that can help them build their own wealth too.
What is wealth; it is the summation of your assets whatever it is what you can fall back on or utilise to stay afloat when things are rough and the chips are down . How.many Nigerians can be called wealthy in this wealthy nation ?
Do you know privileges create wealth?
Do you know that privileges are passed from generation to generation?
It is not.an issue to pass down wealth or privileges to one's children but considering the disproportionate access to wealth in Nigeria; to have wealth passed down is the literal definition of privilege .
Privilege is taking a supersonic jet to wealth while non privilege is just walking ir riding okada with your two legs.against the winds of Nigeria's construct of power and privilege.
Privilege does not discredit any hard work but it propels energy and effort beyond measure. It is called structural inequality where the cake belongs to all.
Have you heard of a.man called ibeto who wanted to play big in the cement industry, he came in with his money - the billion you spoke off and ran into debt because he wasn't privileged.His shipboard of cement spent years at the port.
Do you know what was said to be the cause of the big quarrel between otedola & dangote . Learnt he crossed his boundary of privileges when he decided to go into some of the produce already earmarked as birthright of the latter .
Even BUA once suffered same fate .Nobody cares Who buys what but if it is the state's property let.the people benefit from it . I.Am sure you know what cement and sugar price is now. Must every state firm they buy be killed while they gi for new personal ventures ? Haba. Engaged families and community benefit disappears overnight.
So.Bros.no be quarrel o.
And don't get me.wrong : I am very proud if Dangote as Africa's richest man .