₦airaland Forum

nextstep:
His profit margins are not out of line with other companies (foreign and Nigerian) that operate within Nigeria. This is directly due to the many adversities that businesses face within this country. Don't forget that, if the operations were funded by a Nigerian bank, out of a 40% margin, 20% or more is often paid back to the bank. The terms are not much better with foreign banks unless you have a history with them.

Arguably this burden eventually falls on the people in terms of high costs of materials. Note that if a foreign company (or another Nigerian one) were to enter the market, the prices would stay largely the same. And for the most part, Dangote's profits are then funneled into building other industries across Africa, not into coffers overseas.

The solution, at this stage is for government to make it easier for businesses in Nigeria by providing infrastructure and reducing the cost of business - reducing interest rates, tackling inflation, and so many other things.

signz:
You don't even get my point.

Are the US and China big companies making enormous profit at the expense of their citizens?

For God's sake there are anti monopoly laws in developed economies that protect citizens from exploitation.

Please read the full article https://qz.com/1098137/africas-richest-man-has-a-built-in-advantage-with-nigerias-government/

signz:
"[/b]A Bloomberg Intelligence report showed average global cement profit (EBITDA) margins were 17.2% in 2015, but Dangote Cement reported a margin of 42.3% in the same year[b]".

I got this from the original post. Can you see Dangote's margin? That ďude is a vampire.

Have we asked ourselves why Dangote cement hasn't been so successful elsewhere apart from Nigeria?

Dangote will finish his refinery, FG will reduce fuel importation and we'll be lucky to buy a litre of fuel 350 naira.

OmoEpe:
Your reasoning is alarming, what makes a champion? Selling cement to Nigerian6at $9 and selling to other African countries at less than $5? He dares not try his exploitation in a lawful docie6but all u see in Nigeria is lawlessness at it's peak

He is a soulless, coldblooded exploiter that can't operate successfully in a leds criminally minded society

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

IkpuMmadu:
Thank Lord this Yoruba man eyes have opened....when we tell them that dangote isn't the poster card for richest the Yoruba man and the hausa man will shout...bit we know that he isn't


They say we Igbo hate him but No ..he is just a monopolist...in sane climes....anti competition laws will clip his wings but we are in a country everything goes...


You know why....east won't allow him to invest there....they have ibeto for cement and a whole lot of noodle firms

How many does the south west indigenes have



The bottom line is when you kill competition..you kill innovation....we the better south won't allow this

ndubueze92:
Are you now talking from an economic viewpoint or just from a mere fondness for the Billionaire businessman man? I am not an economist, but Dangote enjoying pure monopoly of everything in Nigeria, backed up by the economic naive governments, both present and past is not good.
Recently I read on the news that the government granted him a tax waiver?
This example might not be a perfect fit, but I think, I should site it... Remember how Techno forced down the prices of Android phones then? That's what happens in a competitive environment. people in the same line of business checkmate each other... the results include: price reduction, quality control, more employments, more revenue for the government, better distribution of products and economic gains etc.
My humble submission and please disregard if misunderstood or turned into name calling and other ethnic biases going on in this forum.

realjoker:
You guys have come again with your cynics reasoning and village square analysis. How much does ibeto and United Cement Company Of Nigeria Limited sell their 50kg cement in your alaugbo? How much is noodles sold in your alaigbo compared to other parts of the country?

realjoker:
how is dangote enjoying pure monopoly in everything in Nigeria? You guys just like feeding yourselves lies just to feel a little important and massage your bruised ego, Nigeria economy is divided into 47 sectors and manufacturing sectors is one out of the 47 sectors of the economy, so tell me how being the leading cement, sugar and flour manufacturers which are two subsectors of many more subsectors of the manufacturing sector of the economy translate to enjoying pure monopoly of everything.

IkpuMmadu:
He is from flour, to sugar to cement...he is either a monopolistic or in a cartel of monopolistic and it's not good for the economy

realjoker:
I didn't say his acts of avoiding tax is good for the economy even though he only took advantage of the loopholes in our fiscal system which is not synonymous to Nigeria alone, but please I won't you to expatiate on how he is enjoying monopoly in everything in Nigeria as you alleged because this has always been your (you and your co-travellers) theme song whenever his name his mention.

realjoker:
how is dangote enjoying pure monopoly in everything in Nigeria? You guys just like feeding yourselves lies just to feel a little important and massage your bruised ego, Nigeria economy is divided into 47 sectors and manufacturing sectors is one out of the 47 sectors of the economy, so tell me how being the leading cement, sugar and flour manufacturers which are two subsectors of many more subsectors of the manufacturing sector of the economy translate to enjoying pure monopoly of everything.

IkpuMmadu:
Are we doing comparative price analysis or are we talking of monopolistic tendency...I guess you must be a Yoruba man....that's the way you reason


When you sold a land 8 times the size of Victoria Island to dangote...I wonder how you guys will compete....oh he will pay 1.2 percent tax and pocket the rest....he will take your land, mess the environment up, then no competition from you ...he would Lord it all


Sometimes ...the way you guys reason seff

IkpuMmadu:
From concession of rice and sugar during obadanjo days to cement which he muscles ibeto out due to his been the biggest financier to the highest debtor now he is into oil and gas from down streak to upstream

Do you know that there was a time he solely has the right to import rice thereby chasing the small fries in Yoruba land to smugglers and fire wall peopoe
Dude dangote is a monopolist in cement, sugar, salt and gas

In sane countries....anti competition laws will be activated on him

ndubueze92:
I thought you were interested in discussing topics of national interest? Now that you have reduced it to insults and emotional outbursts, I will just say bye.... I will never quote you again.

realjoker:
In a sane community Ibeto would have been stoned for putting selfish gains ahead of his kinsmen interest, what stops him from resuscitating and upgrading the capacity of Ebonyi cement has agreed with the fg backward integration policy when he benefited tax holiday and zero tariff on imported cement like Dangote did with obajana cement and Lafarge and BUA did? Since he is an Igbo man he thinks he is wiser than others and he can keep on importing cheap cement rather than resuscitating Ebonyi cement and build new capacity.

realjoker:
OK Sorry for the insult.
Let discuss the topic that is of national interest. Nigeria economy is divided into 47 sectors and manufacturing sectors is one out of the 47 sectors of the economy, how being the leading cement, sugar and flour manufacturers which are two subsectors of many more subsectors of the manufacturing sector of the economy translate to enjoying pure monopoly of everything?

realjoker:
You just claimed dangote has no influence on the price of cement and noodles in your alaigbo since there are many competitors, telling us how much cement is being sold in alaigbo shouldn't be a big deal.
Selling land 8 times the size of VI is a drop of water into a river compared to farmlands owned by Yoruba in the north. And on tax payments, the tax due to the state government and lga from this investment are personnel income tax and tenement rate which there is no loopholes he can take advantage of to avoid payments. And the refinery will be sited in a Free trade zone FTZ, I hope you know the meaning of this.

realjoker:
OK Sorry for the insult.
Let discuss the topic that is of national interest. Nigeria economy is divided into 47 sectors and manufacturing sectors is one out of the 47 sectors of the economy, how being the leading cement, sugar and flour manufacturers which are two subsectors of many more subsectors of the manufacturing sector of the economy translate to enjoying pure monopoly of everything?

realjoker:
OK Sorry for the insult.
Let discuss the topic that is of national interest. Nigeria economy is divided into 47 sectors and manufacturing sectors is one out of the 47 sectors of the economy, how being the leading cement, sugar and flour manufacturers which are two subsectors of many more subsectors of the manufacturing sector of the economy translate to enjoying pure monopoly of everything?

IkpuMmadu:
In a sane community...dangote would have been stoned or in prison for tax evasion and anti competition tendency

...and who told you that ibeto isn't on nkalagu...dangote is impoverishinh the venue folks, not doing much in environmental compensation and also not giving back to to society with army of almajiri in the north

did nothing because lafarfe isn't a Nigerian firm ,..BUA is just a packaging firm they don't have plant

IkpuMmadu:
You just be a Yoruba....the Igbo have ibeto cement...the hausa have dangote ,the south south have BUA which one can Yoruba boast of


Larfage is an international firm but the Yoruba in you won't let you

lafarge (12 million Mt) and BUA (7 millions Mt) have more installed capacity combined than dangote (19.2 million Mt) and both planned to increase their production capacities by next year (BUA 10 Million Mt) and 2020 (lafarge 18 million Mt) and they also benefit same government relief as dangote did.
[quote]Need I remind you again that he's also into Oil and Gas.
Was it not in the very recent past, that the government almost sold our national reserves to him...

My point is that, it isn't economically prudent that we have one entrepreneur stifling others, because of their influences; in fact we need more of that to grow the economy.
For me Dangote's presence is everywhere in Nigeria.
I admire the business empire he has built....
I would still dig more to find out other areas he has grips over.

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

realjoker:
Ibeto cement is inconsequential, BUA is owned by Alhaji Rabiu a northern not a SS, Lafarge is an international company listed on the NSE Yoruba are well positioned in its ownership structure and Ogun State is the leading cement producing state in Nigeria (over 50% of Nigeria cement output) I know sey na robot u be.

ndubueze92:
Maybe I didn't put that correctly, but the government hasn't given other competitors equal toothing to compete with Dangote.
Need I remind you again that he's also into Oil and Gas.
Was it not in the very recent past, that the government almost sold our national reserves to him...
My point is that, it isn't economically prudent that we have one entrepreneur stifling others, because of their influences; in fact we need more of that to grow the economy.
For me Dangote's presence is everywhere in Nigeria.
I admire the business empire he has built....
I would still dig more to find out other areas he has grips over.

Kingkyle1:
Nice points you got there but most Nigerians don't know and those who know can't do a bleep while those responsible and capable to check mate this are not concerned because they know their own gain.

sledjama:
I remember when he started pushing the government back in 2014 to ban all cement producer not able to produce 42.5 grade cement just so he could further get some of his competitors out of business.

And trust the SON guys to rise to the occasion after receiving brown envelopes.

mikolo80:
won't do bleep you mean

Kingkyle1:
Yes! Never going to do any Jack..