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Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? - Business - Nairaland

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Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by aminulive: 10:04pm On Jan 12
When the Nigerian President, Bola Ahmed Tinubu, was sworn in on May 29, 2023, his first policy intervention in Nigeria’s opaque, corruption-laden oil sector surprised everyone. “Subsidy is gone!” Tinubu exclaimed during his inaugural address at the Eagles Square, Abuja, shortly after he was sworn in as the 16th President of Nigeria. He added that there was no provision for subsidy in the national budget from June 2023 and, therefore, it stood removed.

If international investors had any doubt about Tinubu’s commitment to combat Nigeria’s hydra-headed corruption and sanitise the nation’s economic policy space, the declaration indeed put paid to it, and signalled his intent from the start.

Not relenting in its reform drive, barely a month after the subsidy removal declaration, the Tinubu government through the Central Bank of Nigeria (CBN) announced the unification of all segments of the forex market collapsing all windows into one. The bank said it was part of a series of immediate changes to operations in the Nigerian Foreign Exchange (FX) Market, in a bid to improve liquidity and Naira stability.

In its reaction to the raft of policy reforms, the International Monetary Fund (IMF) applauded the economic reforms, noting that the measures were a pathway towards stronger and inclusive growth.

A former President of the World Bank, David Malpass, also lauded the economic strategies employed by Tinubu since assuming office. In a tweet, Malpass declared: “Glad to see @officialABAT taking concrete steps to scrap Nigeria’s harmful government subsidies and multiple exchange rates. These are important steps toward currency stability, lower inflation, and reduced corruption in Africa’s most populous country.”

As in all reforms, the ripple effects of the policies are being felt across boardrooms and on the streets, even as government remains optimistic about the long-term benefits.

While the reforms have shown the direction of the Tinubu government’s economic policy, they have also shown how audacious the president can be in driving reforms in the interest of Nigerian poor masses, without giving undue advantage to businesses considered “sacred cows”.

Tinubu himself made this known at a civic reception organised in his honour by the Lagos State Government at Lagos House, Marina, last October.

“I could afford to share the benefit by participating in the arbitrage, but God forbid! That’s not why you voted for me,” Tinubu said at the reception, defying the possible impact of the audacious moves on public sentiment.

“We have no choice,” he added, noting that it’s important to ensure the good use of available resources to unable government “re-engineer the effectiveness of the control and management of our resources in order to meet the obligations to Nigerians by political officeholders.”

The Price of Audacity

Last week, officials of the Economic and Financial Crimes Commission (EFCC) visited the Dangote Group headquarters in Lagos as part of an investigation into forex allocation in the past years.

Dangote Group is one of Africa's largest companies owned by Billionaire businessman, Aliko Dangote.

The move was part of the ongoing investigation into the abuse of the foreign exchange allocations by former CBN governor, Godwin Emefiele, under whom reports said there were preferential foreign exchange allocations made in defiance of extant financial rules and regulations, and the CBN Act.

Already, Emefiele is being charged for gross violation of extant laws and abuse of office, according to a report by Jim Obazee, a Special Investigator appointed by President Bola Tinubu to scrutinise the activities of the CBN under the former CBN Governor.

The Obazee report, as seen in national dailies and which is yet to be made official, alleges that Emefiele employed surrogates to obtain shares in a new-generation bank during his tenure at the helm of the Central Bank of Nigeria (CBN). Other accusations in the alleged report against Emefiele encompass a spectrum of financial misdeeds, including unauthorised funding of 593 offshore bank accounts, fraudulent cash withdrawals from the CBN vault, gross financial misconduct involving the former governor and his Deputy Governors, and substantial fixed deposit holdings amounting to £543.4 million.

He is also accused of manipulations of the Naira exchange rate, irregularities in the e-Naira project, unauthorised printing of new currency denominations, and substantial expenditures on dubious legal fees, fraudulent interventions, COVID-19-related irregularities, and misrepresentation of presidential approvals on various financial strategies.

Since the recent EFCC investigations began, there have been concerns on how the optics of such investigations could affect the business environment and possibly scare investors away.

But could a move to sanitise the system, curb corruption, instill discipline and provide level-playing fields for all businesses indeed jeopardize investment and scare away investors?

Like BAT, Like MBS

The fears around President Bola Ahmed Tinubu’s reforms are reminiscent of similar fears around a sweeping crackdown on corruption ordered by Crown Prince Mohammed bin Salman, also known as MBS, in Saudi Arabia.

When the reforms began, reports premised on scaremongering dominated media headlines as many wondered what the ripple effect of the reforms could mean for the Saudi economy.

But against the background of the reforms, outlined in the Kingdom’s Vision 2030 blueprint, Saudi Arabia is all set to become one of the most sought-after destinations for businesses in the Middle East and North Africa region.

44 international companies have already moved their regional headquarters to Saudi Arabia, according to official figures, with the prospects improving by the day. At least 80 firms have been issued regulatory clearances to establish their offices in the Kingdom, too.

In recent months, several noted firms, including PwC Middle East and Egypt’s Intella, inaugurated their regional headquarters in Saudi Arabia, indicating Saudi Arabia’s investment-friendly evolution.


In Nigeria, a PwC report on the impact of corruption shows that corruption in Nigeria could cost up to 37% of Gross Domestic Products (GDP) by 2030 if it is not dealt with immediately. This cost is equated to around $1,000 per person in 2014 and nearly $2,000 per person by 2030.

What can be deduced from the report is that Nigeria cannot attain economic development and inclusive growth that will lift millions of Nigerians out of poverty until corruption, especially in business environment, is fought head-on.

So far, with the probe of the CBN, cancellation of round-tripping through the abolition of multiple exchange windows, and removal of opaque, unsustainable fuel subsidies, the Tinubu government has shown a rare commitment to fighting corruption and ensuring a fair investment ecosystem—one that gives investors equal access and opportunities irrespective of where they come from. Without doubt, this has sent positive signals to investors and businesses (local and foreign) worried about Nigeria’s sometimes opaque systems.

To quote a Bloomberg publication on corruption, "Graft may always be with us, but governments can choose either to tolerate and even assist it, or to confront it vigorously." Will the Tinubu government continue on this pathway of sanitizing endemic corruption or will it bow to scaremongering by vested interests?

Dumebi Ifeanyi is a senior public affairs analyst for Communications and Digital Engagement Nigeria

https://politicsnigeria.com/dangote-raid-is-this-an-end-to-sacred-cows-in-the-nigerian-business-community-by-dumebi-ifeanyi/

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by nstore: 10:28pm On Jan 12

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by skj1377(m): 10:41pm On Jan 12
Nothing goes on forever. Dangote is wicked and as such his empire will eventually collapse.

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by matify83: 11:01pm On Jan 12
Cronyism and government patronage has been the sustaining pillar of the Dangote group.

He rode on under hand tactics and exclusive monopoly to arrive at the Pinnacle of business and now that "a pharaoh who does not know Joseph" is in power, his once hailed expertise has been exposed as mere nepotistic favours.

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by SoNature(m): 7:14am On Jan 13
Dangote enjoys a lot of privileges - thanks to Nigerian politicians he finances their campaigns. Given his wealth and level of influence, if Dangote goes down, Nigerian economy is in trouble. That man is now a sacred cow.

The only thing he can do for the EFCC is for the two parties to agree on the specific payment pattern and date he will complete all he owes the country, especially in foreign currency. Together, Emefiele, Buhari and Dangote used our USD to play ping-pong.

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by ProudNigerian01: 8:16am On Jan 13
Dangote has really tried for Nigeria but I hope he is clean on all fronts. The Refinery along with many of his establishments has been of tremendous benefit to Nigeria, however, the supremacy of the law must prevail at all times.

Submit to God in your ways and resist the devil.

James 4.7 - Therefore submit to God. Resist the devil and he will flee from you.

8 Likes 2 Shares

Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by ecolime(m): 8:17am On Jan 13
SoNature:
Dangote enjoys a lot of privileges - thanks to Nigerian politicians. Given his wealth and level of influence, if Dangote goes down, Nigerian economy is in trouble. That man is now a scared cow.

The only thing he can do for the EFCC is for the two parties to agree on the specific payment pattern and date he will complete all he owes the country, especially in foreign currency.
Spot on!

You've said it all. Just like the big Banks, any trouble with Dangote will spell doom for the country. A systemic catastrophe at that.

He should be made to repay his debts including those Emefiele lied about.

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by ATEAMS: 8:17am On Jan 13
I reckon
Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by Emeskhalifa(m): 8:17am On Jan 13
They play. Different regime favors different companies

1 Like 1 Share

Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by money121(m): 8:18am On Jan 13
Ok
Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by talk2hb1(m): 8:18am On Jan 13
One thing is obvious, this is not a typical Nigeria case it happens in America too. Government grant bail out to some businesses in order to stimulate the economy, Governments around the world overlook or grant soft landing for some high worth individuals to keep them from taking their money away to another country.

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by MANNABBQGRILLS: 8:19am On Jan 13
A former President of the World Bank, David Malpass, also lauded the economic strategies employed by Tinubu since assuming office. In a tweet, Malpass declared: “Glad to see @officialABAT taking concrete steps to scrap Nigeria’s harmful government subsidies and multiple exchange rates. These are important steps toward currency stability, lower inflation, and reduced corruption in Africa’s most populous country.

1 Like 2 Shares

Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by Manny21: 8:20am On Jan 13
Sacred vow is gone, government-sanctioned money laundry gone. Monopoly is gone. EFCC do your work.
Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by DaTruths: 8:20am On Jan 13
Nothing will happen.

The North controls Nigeria, this is not Beta Edu

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by beerfraud(f): 8:21am On Jan 13
Tinubu is a greatest man alive
People from that side are just hating for nothing

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by RevenuesBoost(f): 8:22am On Jan 13
Our President is working

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by bestman09(m): 8:22am On Jan 13
Manny21:
Sacred vow is gone, government-sanctioned money laundry gone. Monopoly is gone. EFCC do your work.

This is IGG! (Initial Gra Gra) Nothing will be done about it further

1 Like 1 Share

Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by bestman09(m): 8:24am On Jan 13
angry
Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by CEOKmotors: 8:28am On Jan 13
ProudNigerian01:
Dangote has really tried for Nigeria but I hope he is clean on all fronts. The Refinery along with many of his establishments has been of tremendous benefit to Nigeria, however, the supremacy of the law must prevail at all times.

Submit to God in your ways and resist the devil.

James 4.7 - Therefore submit to God. Resist the devil and he will flee from you.

🙄🙄🙄


Dangote has tried for which Nigeria?

D man is a big thief that can't compete in a fair market.

Only thrives on Monopoly.

Look into all the businesses he had competitors and see how he ran away.

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by jaxxy(m): 8:29am On Jan 13
Lol too early to call. Inflation is still up 28% and climbing. All these started from Emefiele saga or vendetta nothing more.

Bt want I'm sure is we aren't fighting corruption.

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by austinvsb: 8:32am On Jan 13
Only a strongheaded reformist like tinubu is capable of going against Nigeria's corrupt structure.

Other weak politicians will be intimidated into maintaining the status quo.

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by bigdammyj: 8:32am On Jan 13
Reading…
Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by Alajiki(m): 8:34am On Jan 13
I love this president

1 Like

Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by zombieHUNTER: 8:37am On Jan 13
undecided

All these senseless image laundering threads shouldn't be brought to the front page..

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by zombieHUNTER: 8:38am On Jan 13
Alajiki:
I love this president


only zombies can be fooled

what came out of the said raid..

Rubbish

Nigeria is still the poverty capital of the world

North Central remains a slaughter house

Insecurity is at all time high

4 Likes 1 Share

Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by jaxxy(m): 8:41am On Jan 13
CEOKmotors:


🙄🙄🙄


Dangote has tried for which Nigeria?

D man is a big thief that can't compete in a fair market.

Only thrives on Monopoly.

Look into all the businesses he had competitors and see how he ran away.

Dagote has made monopoly popular like he's the 1st to be given monopoly in Nigeria or in the world. Lol

Monopoly is not illegal or strange it is a market and development strategy.

1 Like

Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by Alajiki(m): 8:45am On Jan 13
zombieHUNTER:



only zombies can be fooled

what came out of the said raid..

Rubbish

Nigeria is still the poverty capital of the world

North Central remains a slaughter house

Insecurity is at all time high


Nigeria did not just become poverty capital of the world. It's as a result of several years of rape. The insecurity in Nigeria as a whole did not just start. All that should not stop a serious leader from doing what needs to be done. On this, I applaud the president. We can only wait and see where this ends.

This man is working.

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Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by ekelebeXstunner: 8:49am On Jan 13
Long write-up. I lost interest quick.

2 Likes 1 Share

Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by opalu: 8:54am On Jan 13
Ok
Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by BabaHenry(m): 8:55am On Jan 13
beerfraud:
Tinubu is a greatest man alive
People from that side are just hating for nothing
You want to start early this morning ??

2 Likes 1 Share

Re: Dangote Raid: Is This An End To "Sacred Cows" In The Business Community? by zombieHUNTER: 8:56am On Jan 13
Alajiki:

Nigeria did not just become poverty capital of the world. It's as a result of several years of rape. The insecurity in Nigeria as a whole did not just start. All that should not stop a serious leader from doing what needs to be done. On this, I applaud the president. We can only wait and see where this ends.
This man is working.

undecided
You will feel and see the impact of work.. if he's truly performing

But what we see is the Naira doing terribly against the dollar..
We see hunger and poverty ravaging the land
we see unemployment rising
we see Nigerians moving away from their fatherland in unprecedented fashion

please don't go to plateau or benue villages to brag about your performing president.. You will be lynched..

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