₦airaland Forum

mu2sa2:
What is the alternative? It is a free market, if you don't like Dangote start a rival business to compete with him. Today, Dangote is the single largest investor in the Nigerian economy, with his companies employing thousands of people. I read somewhere that obajana employees alone are more than the combined staff of all the banks in nigeria. All this talk of northerners, monopoly is rubbish. This guy is in 14 or so African countries. In Cameroon in just one year Dangote cement took over 50% of the market. The guy is a shrewed businessman with expert knowledge of the African environment. He should be commended - while politicians are stealing and stashing money in secret accounts overseas, Dangote is investing all his money at home.

SmartyPants:
Okay so something is seriously out of place in this article. The writer cannot point to one single genuine detrimental effect that Dangote has on the economy. The best takeaway from this post is that Dangote may receive more than he gives back which is no crime so long as he is actually giving back. 12 billion naira from one company alone is substantial, regardless of how much it makes.

This money can achieve a lot of things in Nigeria today.

As to the allegation that Dangote as a monopoly sets the price, this does not male sense when you then go ahead today that Nigerias cement prices are too high--ostensibly thanks to Dangite. This is simply because monopolies can only force competitors to reduce price so contrarily, if Dangotr and his competitors are selling at the same bloated level, then it means he is exerting no influence on price in the industry.

Apologies for the errors, typing from phone.

obua:
Whats the margin of other cement producers?
What was the margin before the advent of Dangote Cement.
Dangote Cement is actually the only cement firm that periodically reduces price.
Other companies enjoy pioneer status also in other areas of the economy.
Dangote is an African champion and he should be encouraged and not castigated.
People should not sit in the comfort of homes and offices of employment and criticize people who stake their lives in the uncertainty of self employment

Ofemmanu1:
Dangote is a champion. Typing live from Obajana.

wickyyolo:
Stop ranting. Real Madrid influence has not stopped other clubs from existing.

codemaniacs:
you would allow someone that is a "son of the soil" to exploit you just because that person is from your country

that's exactly why Africa got colonized.. they killed off the good leaders and used greedy and materialistic leaders against Africans.. which they still do till date...

the reason they fought the Yorubas, igbos and other southern Nigerian ethnic groups till the early 1900s was because there was more than one leader or one main influential person... unlike the Hausa's that had one main leader who was deceived and killed...

its one of the main reasons they joined northern and southern Nigeria together...

90% of southern Nigerians split their wealth almost evenly so everyone grows to become something and no one person is seen as the main person..

It would have been better if Obj and other politicians weren't suffering from inferiority complex companies like MTN and other foreign companies would have never set foot in Nigeria...

I wonder why the Lagos state govt does not want to build state owned shopping malls but is letting shoprite corner the market..

there is something intellectually wrong with Nigerian politicians..

chinedubrazil:
what u just said is the true definition of Irony

cristianisraeli:
of course

only a zombie wont know this

been like this in nigeria..always the north oppressing the south

97% always always

dangote trucks kill people anyhow and nobody will dare say anything

MrMcJay:
Dangote only thrives in monopolies where he controls production, distribution and exchange.

In 2004, there were rumours of poisoned Indomie Noodles. Not too long after, Dangote introduced his horrible-tasting Noodles into the market.

A few years ago, the guys at Standards Organization of Nigeria were shamelessly marketing Dangote's 3X cement. This is irrespective of the fact that it's not proven to set faster or be stronger than others.

Dangote's monopoly is not even felt now, wait till he's the owner of the only functional refinery in Nigeria. That's when Nigerians would smell pepper. If you doubt me, how much was sugar and cement before Dangote's monopoly, how much are they now?

The reason Dangote succeeds is because there is no Anti-Trust and Competition Law in Nigeria. The day we have Competition Law in Nigeria, Dangote is finished. How would someone buy up cement companies and shut them down because you don't want them to rival your inflated priced cement?

Unfortunately, the leading expert on Competition Law in Nigeria with a PhD in Competition Law from the UK was made a Federal High Court Judge in 2016. Today, he's in Abuja trying money laundering and anti-corruption cases.

eflintsone:
you know how vehincles dey kill pple daily ?? but na only dangote trucks una go tlk all cos of hate nd tribalism ... dangote is making made in nigeria possible yet u all aint satisfied all cos of hate ...dangote employs millions of nigerians yet u all aint satisfied nd truck b una stupid excuses

Obi1kenobi:
As has been pointed out by some international critics of Dangote, we had better watch out for the refinery. This should theoretically be a good thing seeing as we can be self-sufficient in crude refining and eliminate the massive imports of refined crude. But the antecedents of Dangote and his cartel in the cement industry gives us a clue as to what this monopoly on local refining can devolve to. Because, rather than see a massive drop in prices of crude products, it would be unsurprising to see Nigerians having to STILL pay through their nose for locally refined crude - even higher than now. This is a man that makes over 50% profits on cement even as Nigerians groan under the high prices. Importing cement pre-Obasanjo was actually easier on the Nigerian population, seeing as cement, and consequently construction, was far cheaper. The so-called "local production" has only been a curse to us. The 10,000 Nigerian workers Dangote cement employs is not worth the sacrifice millions of Nigerians have to make.

LordAdam16:
I respect Dangote. And I fully acknowledge that morality and capitalism don't mix, but paying 12 billion out of 1.* trillion is disgustingly low.

That's around 1%. Corporate tax is 30%. Income tax (the tax you pay) starts at 25%.

Dangote is a smart businessman. And sure he has his plus points, but it doesn't mean we should all just ignore his minuses.

That said, I'd like to know what the margins and tax remunerations are with the other cement companies--LaFarge, BUA, Ibeto et al...

-Lord

NgcoboP:
Wish you could use your brains.

SmartyPants:
Unless Dangote acquired these advantages by unfair means then i see no problem with it.

The question is why would he be given tax breaks/concessions? Simply because the bulk of that money flows right back into three critical places:

1. The consumer economy - remunerations to labor (Dangote's employees) and entrepreneurship (Dangote himself) will result in consumer spending that keeps money in circulation;
2. The banking system - Savings provide money for the banks to lend to small businesses
3. Investment economy - If you and i are given extra money through tax breaks, the likelihood is that we would spend it in the consumer market, whereas the FG knows that if Dangote is given more money through tax breaks, he is most likely going to reinvest it, either expanding his current capacity, or investing in new ventures, with the attendant economic benefits of doing so.

LordAdam16:
I respect Dangote. And I fully acknowledge that morality and capitalism don't mix, but paying 12 billion out of 1.* trillion is disgustingly low.

That's around 1%. Corporate tax is 30%. Income tax (the tax you pay) starts at 25%.

Dangote is a smart businessman. And sure he has his plus points, but it doesn't mean we should all just ignore his minuses.

That said, I'd like to know what the margins and tax remunerations are with the other cement companies--LaFarge, BUA, Ibeto et al...

-Lord

LordAdam16:
Nonsense!

Show me any company in the Western world paying 1% in taxes.

And you're here talking about the benefits of tax breaks. Like I've been living under a rock or I'm an artisan. If the 1% is so okay, why is the government plugging the leak by excluding cement from the pioneer list now?

-Lord

MrMcJay:
Dangote only thrives in monopolies where he controls production, distribution and exchange.

In 2004, there were rumours of poisoned Indomie Noodles. Not too long after, Dangote introduced his horrible-tasting Noodles into the market.

A few years ago, the guys at Standards Organization of Nigeria were shamelessly marketing Dangote's 3X cement. This is irrespective of the fact that it's not proven to set faster or be stronger than others.

Dangote's monopoly is not even felt now, wait till he's the owner of the only functional refinery in Nigeria. That's when Nigerians would smell pepper. If you doubt me, how much was sugar and cement before Dangote's monopoly, how much are they now?

The reason Dangote succeeds is because there is no Anti-Trust and Competition Law in Nigeria. The day we have Competition Law in Nigeria, Dangote is finished. How would someone buy up cement companies and shut them down because you don't want them to rival your inflated priced cement?

Unfortunately, the leading expert on Competition Law in Nigeria with a PhD in Competition Law from the UK was made a Federal High Court Judge in 2016. Today, he's in Abuja trying money laundering and anti-corruption cases.

MrMcJay:
Dangote only thrives in monopolies where he controls production, distribution and exchange.

MrMcJay:
Dangote only thrives in monopolies where he controls production, distribution and exchange.

In 2004, there were rumours of poisoned Indomie Noodles. Not too long after, Dangote introduced his horrible-tasting Noodles into the market.

A few years ago, the guys at Standards Organization of Nigeria were shamelessly marketing Dangote's 3X cement. This is irrespective of the fact that it's not proven to set faster or be stronger than others.

Dangote's monopoly is not even felt now, wait till he's the owner of the only functional refinery in Nigeria. That's when Nigerians would smell pepper. If you doubt me, how much was sugar and cement before Dangote's monopoly, how much are they now?

The reason Dangote succeeds is because there is no Anti-Trust and Competition Law in Nigeria. The day we have Competition Law in Nigeria, Dangote is finished. How would someone buy up cement companies and shut them down because you don't want them to rival your inflated priced cement?

Unfortunately, the leading expert on Competition Law in Nigeria with a PhD in Competition Law from the UK was made a Federal High Court Judge in 2016. Today, he's in Abuja trying money laundering and anti-corruption cases.

obua:
Whats the margin of other cement producers?
What was the margin before the advent of Dangote Cement.
Dangote Cement is actually the only cement firm that periodically reduces price.
Other companies enjoy pioneer status also in other areas of the economy.
Dangote is an African champion and he should be encouraged and not castigated.
People should not sit in the comfort of homes and offices of employment and criticize people who stake their lives in the uncertainty of self employment

chloride6:
Nobody is ranting, mind your language. The other clubs as you have said are only "existing".

COMPAQ:
Have you also considered the tax laws? I'm sure you know Capital allowances are? And in fact Dangote has consistently invested in new cement plants, so the capital expenditure will be knocked off whatever he should pay. And that's not counting the pioneer status provision as well (assuming he has pioneer status) so its understandable. I recall reading in the news a few days ago that Amazon UK paid GBP15mln on revenues of GBP19.5bln!!! That's why these corporate giants get good tax accountants and lawyers. There is only a crime in tax evasion but not tax avoidance.

https://www.thebalance.com/tax-avoidance-vs-evasion-397671

https://www.theguardian.com/technology/2017/aug/10/amazon-uk-halves-its-corporation-tax-to-74m-as-sales-soar-to-7bn