CodeTemplar:
Engineers and scientist choose to be dormant largely but business related and art related grad are mostly stuck skills that are less marketable as entrepreneurs.

did you say stuck skills?

my guy forget that thing.

All fields are useful in their own way

just that the Nigerian economy is not well shaped.

And yes, if you say engineers and scientists choose to be dormant, then it also means that the lawyer's and accountants and other fields also chose to be dormant

Where are the research lab in Nigeria to use the scientists

Even the engineers what are most of them doing,?

I go to Nigeria from time to time and I see all manners of fuckery in the corporate space and all.

And ANY ONE can be an entrepreneur

All it takes to be one is to solve problems / attend to the needs of potential customers

it has nothing to do with your field of study

lawyers, engineers etc have opened and run successful businesses in Nigeria

Gogetta:
He is an expatriate. The senior partner & MD in one of the top 3 management consulting firms.

Bros, wait o.

Is that figure solely his wages or it is wages plus cost of all benefits like the Banana Island/Bourdillon accommodation with servants and 4x4s?

����

CodeTemplar:
Sit there and be doing "my month of unlimited favour" around. People earn twice that self. That's some northern state monthly FAAC allocation. It is all about what you have to offer the person or entity you work for. Some engineer have potential to earn their employers some 12m USD extra per month and it is only wise such an employer offers a decent percentage of that in salary.
Not everybody is an accountant doing boring repetitive excel work and waiting for their month of favour to arrive. Some people carry potential to create enormous amount of wealth and they know it.

So a person has this much potential, ability and skills, yet they are docile and diffident enough to remain mere salaried employees? If they're so sure of their special skills, why not use it as solopreneurs (if not outright entrepreneurs) to make the money on their own?

Gamesmart:


Nigerian public company pays an executive N1bn in bonuses?

Really?

The guy is a slowpoke!

Now that I know it's NLNG, I am tempted to believe. These organisations are extremely corrupt, and unbelievably corrupt corporate governance practices. They can allocate such huge salaries to themselves that are at variance with international industry best practices. It's corruption at play here, and it really sucks.

Hedonini:


So a person has this much potential, ability and skills, yet they are docile and diffident enough to remain mere salaried employees? If they're so sure of their special skills, why not use it as solopreneurs (if not outright entrepreneurs) to make the money on their own?

Yes there are people who carry this much potential. Do you drink Milo ( popular cocoa beverage instant drink ) ?
If you do next time look at the sachet well there is a special malt formula called "Protomalt" that is largely responsible for the unique properties of Milo and this formulae is worth billions of dollars to them because it virtually controls their market share and revenue from Milo.
Now if you, Hedonini happen to be biochemist researcher and you come up with a formula as good as that of the Milo's Protomalt, will you attempt to go into cocoa beverage production as a solopreneuer with next to no capital and market brand reputation OR you will take a 10 million usd per month contract job with Cadbury (Nestle Milo's Rival ) for the next 5 years ? Will you be tempted to even think about this kind of opportunity if it presents itself to you?

Please be honest in your answers.

CodeTemplar:
Yes there are people who carry this much potential. Do you drink Milo ( popular cocoa beverage instant drink ) ?
If you do next time look at the sachet well there is a special malt formula called "Protomalt" that is largely responsible for the unique properties of Milo and this formulae is worth billions of dollars to them because it virtually controls their market share and revenue from Milo.
Now if you, Hedonini happen to be biochemist researcher and you come up with a formula as good as that of the Milo's Protomalt, will you attempt to go into cocoa beverage production as a solopreneuer with next to no capital and market brand reputation OR you will take a 10 million usd per month contract job with Cadbury (Nestle Milo's Rival ) for the next 5 years? Will you be tempted to even think about this kind of opportunity if it presents itself to you?

Please be honest in your answers.

This scenario would make me a solopreneur rather than a typical employee. I'm basically rendering services for a humongous amount of money on a retainer for a defined period (only 5 years, and can renegotiate anything on my own terms). I wouldn't be bound by organisational rules, or code of conduct, and all the other restrictions and B.S that comes with being an employee. Instead, as an independent actor, I'll be judged strictly by mutually agreed deliverables/output. This is basically the same thing many service/consulting business rendering a service for other businesses do.

This is not the same thing as a mere salaried employee slaving away at a job in spite of his so-called special skills.

franchasng:
hmmm....you need to wake up o...some make even more if u don't know. I also know a bakery owner that makes close to 10million monthly after paying his staff salaries.

The secret to making millions is nothing but ability to sell lots of items daily, and some of the business owners inside some market that you look down on make daily sales of up to 100 - 300 items depending on the day and season of the year....and some use like 500 - 3,000 to sell...while some use like 5,000 - 10,000 to sell like 50 items daily, now multiply it by 24 days and guess how much they are making in a month.


If you have a banker friend or know a close banker, ask him or her how far...that's why most female bankers don't like to marry salary earners because they are seeing what's going on in the accounts of these business guys u look down on, my brother wake up...I gain nothing with whatever I am telling u but I am telling u this to motivate u and others to think beyond your nose.

How do u think most business owners buy big cars, own big mansions in choice areas in cities and give their family members good life; maybe through ritual money right

There is no ritual money anywhere, the ritual money is selling in large quantity consistently everyday, simple, so wake up

Smart guy! I relate with the first example.


I know of a former teacher in Lagos who left teaching 6 years ago to join his wife as a partner in the small baking business she had.

Today they use 50 bags of flour daily and both directors are on salaries of 500,000 and allowances of 4,500,000.

This is outside profits and other incomes.

The monies generated from the sales of empty/used flour and sugar sacks alone is amazing, always in 6 figures.

stack1:
Depends Some of the figures posted here are definitely realistic, Folks in Oil and Gas, senior managers et.all do earn a few Mills/month.
Recently I.T has also been another way people earn relatively well, A senior dev in a good fin-tech (Think Paystack, interswitch etc) should have no problem earning 700k+/month.
Skills and experience matter a lot this days, a tailor who's able to churn out uncommon styles, could make 300k+/month with the right clientele

Middle level Interswitch staff is about 18 Mill per annum less perks like car/housing etc

Hedonini:


This scenario would make me a solopreneur rather than a typical employee. I'm basically rendering services for a humongous amount of money on a retainer for a defined period (only 5 years, and can renegotiate anything on my own terms). I wouldn't be bound by organisational rules, or code of conduct, and all the other restrictions and B.S that comes with being an employee. Instead, as an independent actor, I'll be judged strictly by mutually agreed deliverables/output. This is basically the same thing many service/consulting business rendering a service for other businesses do.

This is not the same thing as a mere salaried employee slaving away at a job in spite of his so-called special skills.

You just said your own mind but even at that I don't believe you.

No this is another probable scenario.
Artificial intelligence is a relative new and evolving field and has been impacting all aspect of industries. It has been shown that AI can help to better monitor oil wells and improve the overall efficiency of these well over their lifetime.
If you, Hedonini, have the required formula of AI to deliver this services to an oil well with enough reserve, Will you try to own an oil well as a solopreneuer or try to offer it to the oil wells owner?

The emphasis here is being in a vantage position to fulfill your potential of wealth creation.
Be honest with this one when you finally reply.

Remember this trend is very common in STEM based career path. The big industries in this world depend on brains to run but those brains hardly try to stand on their own because the cost of competing with established brands is astronomical and the venture itself is risky.

CodeTemplar:
You just said your own mind but eben at that I don't believe you.

No this is another probable scenario.
Artificial intelligence is a relative new and evolving field and has been impacting all aspect of industries. It has been shown that AI can help to better monitor oil wells and improve the overall efficiency of these well over their lifetime.
If you, Hedonini, have the required formula of AI to deliver this services to an oil well with enough reserve, Will you try to own an oil well as a solopreneuer or try to offer it to the oil wells owner?

The emphasis here is being in a vantage position to fulfill your potential of wealth creation.
Be honest with this one when you finally reply.

Remember this trend is very common in STEM based career path. The big industries in this world depend on brains to run but those brains hardly try to stand on their own because the cost of competing with established brands is astronomical and the venture itself is risky.

Well, I agree with this to a considerable extent. But this isn't often the case in Nigeria... The percentile of the kind of outliers you describe here (who bring almost existential value to the companies they work for) is less than 5%. But then, it's annoying when fortunate mediocres try to justify their outsized pay checks by claiming some special 'indispensable' skills or qualifications.

Gamesmart:


Shut up I go siddon.

Lying idiot that claimed he saw bonus paid on "job offer letter".

Your statement Sir is quite relative. The standard offer letter for many junior and intermediate positions (especially in Nigeria) are usually very simplistic stereotypes given with the understanding that they are doing you a favour.

Very senior positions in serious organizations state in very clear terms the incentive possibilities and this is usually couched as a contract or a memorandum of understanding often in multiple pages. in the course of my career I have seen this kind of contract in varied forms.

The most interesting ones I can recall right away are one for Nigerian hireling for a Swiss based Oil Trading Company and another for an Indian Candidate for a major fast moving Consumer Goods Company based in Ajao Estate. If you recall MTN in its first hirings also made great offers to the team put together to birth their operations here; recall the Aussie and the UNILAG guy?

Hedonini:


Well, I agree with this to a considerable extent. But this isn't often the case in Nigeria... The percentile of the kind of outliers you describe here (who bring almost existential value to the companies they work for) is less than 5%. But then, it's annoying when fortunate mediocres try to justify their outsized pay checks by claiming some special 'indispensable' skills or qualifications.

It isn't often the case in the world out there but the main thing is there are truly special breeds of experts who carry potential to create mind-bugling amount of wealth. And when I mean wealth creator I am not talking of characters like Dangote whom I think is an artificial billionaire created by the government. I am talking of skilled professional who groomed themselves in that realm.

Imagine this other scenario. Sahara desert region of Africa is now being deserted heavily due to desertification and deforestation. This can be remedied in a number of ways but one way I discovered that is being used in some Arid nations is desalination of huge volume of sea water. Desalination is needed because sea water is saline ( contains salt ) and has been achieved at a cost of aboiut half us dollar per cubic meter of water, but who will pioneer such a humongous project that can change Africa forever?
The answer will be individuals who have dedicated themselves to the study of fields relevant to achievement of this huge task.
Now such brains will likely end up as researchers and employees to any investor bold enough to dare such an investment because government is often to divided and shortsighted to undertake such.

CodeTemplar:
It isn't often the case in the world out there but the main thing is there are truly special breeds of experts who carry potential to create mind-bugling amount of wealth. And when I mean wealth creator I am not talking of characters like Dangote whom I think is an artificial billionaire created by the government. I am talking of skilled professional who groomed themselves in that realm.

Imagine this other scenario. Sahara desert region of Africa is now being deserted heavily due to desertification and deforestation. This can be remedied in a number of ways but one way I discovered that is being used in some Arid nations is desalination of huge volume of sea water. Desalination is needed because sea water is saline ( contains salt ) and has been achieved at a cost of aboiut half us dollar per cubic meter of water, but who will pioneer such a humongous project that can change Africa forever?
The answer will be individuals who have dedicated themselves to the study of fields relevant to achievement of this huge task.
Now such brains will likely end up as researchers and employees to any investor bold enough to dare such an investment because government is often to divided and shortsighted to undertake such.

Lol, this is 100% true, but I'm sure you're honest enough to admit that these kinds of people barely exist in the rarified world of illicitly high earning corporate Mafiosi in our Nigeria. Certainly not in the NLNG where they pay fresh (highly connected rather than talented) graduates 1.6m per month or the other so-called O&G firms here where there is ZERO INNOVATION. That's my grouse really. The polluted, corrupt, and provocative regime of compensation in Nigeria's corporate space where pay is disproportionately higher than talent/value added.

There's everything wrong with companies in same industry paying higher salaries (even to locals) here in shithole, unproductive, non-innovative Nigeria than their counterparts in prosperous, highly innovative Western countries!

Hedonini:


Lol, this is 100% true, but I'm sure you're honest enough to admit that these kinds of people barely exist in the rarified world of illicitly high earning corporate Mafiosi in our Nigeria. Theyre certainly not in the NLNG where they pay fresh (highly connected rather than talented) graduates 1.6m per month. That's my grouse really. The polluted, corrupt, and provocative regime of compensation in Nigeria's corporate space where pay is disproportionately higher than talent/value added.

I strongly share the bold with you. In Nigeria connection overrides talent and such talent I have been highlighting hardly stand a chance in
Nigeria.

CodeTemplar:
It isn't often the case in the world out there but the main thing is there are truly special breeds of experts who carry potential to create mind-bugling amount of wealth. And when I mean wealth creator I am not talking of characters like Dangote whom I think is an artificial billionaire created by the government. I am talking of skilled professional who groomed themselves in that realm.

Imagine this other scenario. Sahara desert region of Africa is now being deserted heavily due to desertification and deforestation. This can be remedied in a number of ways but one way I discovered that is being used in some Arid nations is desalination of huge volume of sea water. Desalination is needed because sea water is saline ( contains salt ) and has been achieved at a cost of aboiut half us dollar per cubic meter of water, but who will pioneer such a humongous project that can change Africa forever?
The answer will be individuals who have dedicated themselves to the study of fields relevant to achievement of this huge task.
Now such brains will likely end up as researchers and employees to any investor bold enough to dare such an investment because government is often to divided and shortsighted to undertake such.

did you call Dangote an artificial billionaire? ?


This guy is tripping o

if you knew about Dangote the way I do, you will not call him an "artificial" billionaire

Ugosample:


did you call Dangote an artificial billionaire? ?


This guy is tripping o

if you knew about Dangote the way I do, you will not call him an "artificial" billionaire

The whole of Africa knows him as an artificial billionaire. The protection he gets from government is well known in the African economic space. His cement story is plain and simple.

CodeTemplar:
The whole of Africa knows him as an artificial billionaire. The protection he gets from government is well known in the African economic space. His cement story is plain and simple.

my family have significant holdings in dangote cement

I personally have good holdings in dangote cement too

But that's by the way side.

I know the antecedent of dangote cement and how they evolved over the decade, and it's far different from what others say, especially my kinsmen about Dangote cement


Dangote made that paradigm shift from importing to local production, building that plant in Kogi state and all, while others (especially dem ibeto ) were just content with importation

When the time for us to make that shift, the cement importers were burned while those who were ready to produce at home got bumper benefits

And the shareholders have been happy ever since LMAO


even Dangote sugar was also a game changer, because dangote 's vision of shifting from importation of sugar to sugar refining in Nigeria in 1998, spending millions of USD then to actualize that dream.

When a business man takes big risks or ambitious projects like that, it's only natural for the govt to support him in one way or the other, which is done world wide.

Dangote has my respect ANY time anyday because I know the TRUTH, not what people are saying about him, and he makes my family richer too

Now dangote has taken a big risk in opening a refinery, and he was not the only one who was given licences to do so, but where are the others?

tomorrow his refinery will do well and they will accuse him if patronage of govt again.

Ugosample:


my family have significant holdings in dangote cement

I personally have good holdings in dangote cement too

But that's by the way side.

I know the antecedent of dangote cement and how they evolved over the decade, and it's far different from what others say, especially my kinsmen about Dangote cement


Dangote made that paradigm shift from importing to local production, building that plant in Kogi state and all, while others (especially dem ibeto ) were just content with importation

When the time for us to make that shift, the cement importers were burned while those who were ready to produce at home got bumper benefits

And the shareholders have been happy ever since LMAO


even Dangote sugar was also a game changer, because dangote 's vision of shifting from importation of sugar to sugar refining in Nigeria in 1998, spending millions of USD then to actualize that dream.

When a business man takes big risks or ambitious projects like that, it's only natural for the govt to support him in one way or the other, which is done world wide.

Dangote has my respect ANY time anyday because I know the TRUTH, not what people are saying about him, and he makes my family richer too

Now dangote has taken a big risk in opening a refinery, and he was not the only one who was given licences to do so, but where are the others?

tomorrow his refinery will do well and they will accuse him if patronage of govt again.

The man enjoys unusual protection and in my estimation that is responsible for substantial part of his wealth.

CodeTemplar:
The man enjoys unusual protection and in my estimation that is responsible for substantial part of his wealth.

The man who takes big big risks should get some govt support in one way or the other

It encourages one to take even bigger risks

and tell me, what do you deem as "unusual protections"?

he would have just been another importer making money and all, being a rent seeker

but he decided to add value and that's why he is the world richest black man

When his listing in London sails through and his refinery kicks off, he will be invincible


If I were you, id be taking position to reap bountiful return from his companies

Hedonini:


Certainly not in the NLNG where they pay fresh (highly connected rather than talented) graduates 1.6m per month or the other so-called O&G firms here where there is ZERO INNOVATION. That's my grouse really. The polluted, corrupt, and provocative regime of compensation in Nigeria's corporate space where pay is disproportionately higher than talent/value added.

Do you have irrefutable proof of your allegations that the graduates are what you claim they are?

airsaylongcon:


Do you have irrefutable proof of your allegations that the graduates are what you claim they are?

seriously am baffled at his allegation. I know they calibre of graduates working there. They are top-notched and highly intelligent.

Ugosample:


my family have significant holdings in dangote cement

I personally have good holdings in dangote cement too

But that's by the way side.

I know the antecedent of dangote cement and how they evolved over the decade, and it's far different from what others say, especially my kinsmen about Dangote cement


Dangote made that paradigm shift from importing to local production, building that plant in Kogi state and all, while others (especially dem ibeto ) were just content with importation

When the time for us to make that shift, the cement importers were burned while those who were ready to produce at home got bumper benefits

And the shareholders have been happy ever since LMAO


even Dangote sugar was also a game changer, because dangote 's vision of shifting from importation of sugar to sugar refining in Nigeria in 1998, spending millions of USD then to actualize that dream.

When a business man takes big risks or ambitious projects like that, it's only natural for the govt to support him in one way or the other, which is done world wide.

Dangote has my respect ANY time anyday because I know the TRUTH, not what people are saying about him, and he makes my family richer too

Now dangote has taken a big risk in opening a refinery, and he was not the only one who was given licences to do so, but where are the others?

tomorrow his refinery will do well and they will accuse him if patronage of govt again.

what paradigm shift are you talking about? it's an open secret the obasanjo administration mortgage Nigeria to Dangote. To add insult to injury he doesn't even innovate nor pay taxes, just bags cements at the highest price in the world and sells to Nigerians and all these is sustained, aided and abetted by the Nigerian Government. I don't blame him though, I do blame our past Governments. Now he is doing the same thing with the refinery. I dont know how the Government of a whole country will be looking up to 1 man to bail them out.
https://qz.com/africa/1098137/africas-richest-man-has-a-built-in-advantage-with-nigerias-government/

Keep lying to yourself...how does having exclusivity in import licences for a while make him better than Ibeto. Dangote is the poster boy for crony capitalism
https://nairametrics.com/cement-wars-the-battle-for-cement-dominance-between-ibeto-vs-dangote/?utm_source=Nairametrics+Newsletter&utm_campaign=2c1f68db67-EMAIL_CAMPAIGN_2018_05_05_COPY_01&utm_medium=email&utm_term=0_c96c21e814-2c1f68db67-110430189

dyydxx:


what paradigm shift are you talking about. it's an open secret the obasanjo administration mortgage Nigeria to Dangote. To add insult to injury he doesn't even innovate nor pay taxes, just bags cements at the highest price in the world and sells to Nigerians and all these is sustained, aided and abetted by the Nigerian Government. I don't blame him though, I do blame our past Governments. Now he is doing the same thing with the refinery. I dont know how the Government of a whole country will be looking up to 1 man to bail them out.
https://qz.com/africa/1098137/africas-richest-man-has-a-built-in-advantage-with-nigerias-government/

What is this one saying??,

Even the so called link you posted said nothing sensible


Where were the other business men when he was taking a big risk to build the sugar refinery in the late 90s/early 2000s?

Where was ibeto when dangote /BUA /Lafarge was picking mining icences in Nigeria?

Where are the other Nigerian businessman (especially that lazy prick called Ifeanyi Uba ) who were given licences to build refineries? ?

At least Oduah Stella tried with her modular refinery and the floating stations in the Niger delta, that's something

Dangote is taking a big risk in establishing industries in Nigeria, and its only natural that the gov't protect him in one way or the other (like banning the importation of cement whichI think was a very good move) no gov't should support importers over those who are ready to produce locally

China banned Facebook /Whatsapp so that the Chinese substitute can thrive at home. Japan places high tariffs/our right ban to protect local industries

And yes, he made a paradigm shift, if not we would still be importing cement and sugar and even salt.
soon with his refinery in board , he will save us a lot of forex and create jobs
the subsidy scam will die a natural death

And according to the article you posted there, yes indeed the CBN gov is right, we need more men like dangote

I smile and I laugh...until you start earning such sums, it is often difficult to believe that it is possible without knowing anyone or doing anything illegal.

thegreengooner:
I smile and I laugh...until you start earning such sums, it is often difficult to believe that it is possible without knowing anyone or doing anything illegal.

true sha

Ugosample:





What is this one saying??,

Even the so called link you posted said nothing sensible


Where were the other business men when he was taking a big risk to build the sugar refinery in the late 90s/early 2000s?

Where was ibeto when dangote /BUA /Lafarge was picking mining icences in Nigeria?

Where are the other Nigerian businessman (especially that lazy prick called Ifeanyi Uba ) who were given licences to build refineries? ?

At least Oduah Stella tried with her modular refinery and the floating stations in the Niger delta, that's something

Dangote is taking a big risk in establishing industries in Nigeria, and its only natural that the gov't protect him in one way or the other (like banning the importation of cement whichI think was a very good move) no gov't should support importers over those who are ready to produce locally

China banned Facebook /Whatsapp so that the Chinese substitute can thrive at home. Japan places high tariffs/our right ban to protect local industries

And yes, he made a paradigm shift, if not we would still be importing cement and sugar and even salt.
soon with his refinery in board , he will save us a lot of forex and create jobs
the subsidy scam will die a natural death

And according to the article you posted there, yes indeed the CBN gov is right, we need more men like dangote

I LIKE THIS ARTICLE BECAUSE IT IS AN APT SUMMARY OF HOW DANGOTE ROSE TO PROMINENCE WITH PROPER SOURCES

To start to understand how Aliko Dangote, Africa’s richest man, came to have such influence over the Nigerian government, it is useful to go back in time to 2003. Before then, he was a Nigerian billionaire just like any other.

But in the run up to the 2003 election campaign, president Olusegun Obasanjo had a famous falling out with his vice president, Atiku Abubakar, over the latter’s attempt to succeed him as president after only one term. Obasanjo had also been operating on the understanding that Atiku, as the People Democratic Party’s (PDP) money man, would fund his re-election campaign.

But Atiku told him that all the money had been spent during Obasanjo’s turbulent first term, notably on lobbying the national assembly not to impeach him on two different occasions. Without access to the party’s old fundraising machine, Obasanjo was left with no choice but to find his own new donors.

In his 2013 book, The Accidental Public Servant, the current governor of Kaduna state and former minister under Obasanjo, Nasir El-Rufai, describes how this episode presented Dangote with an opportunity he has maximized to his great benefit. He writes:

Obasanjo had to resort to raising money from other sources and that was how Aliko Dangote came into prominence in the government. From 1999 to 2003, nobody had heard of Dangote having anything to do with the federal government in any significant way. – El-Rufai, Nasir. The Accidental Public Servant (p. 170)

Dangote Stays Winning
By the time president Goodluck Jonathan came to office, the PDP-led government had become very closely and publicly aligned with Dangote. During a presidential media chat in 2011, the president told his interlocutors that Nigeria was to begin exporting cement that year because “Dangote himself, because he is the number one producer, told me” [pdf, page 64].

This Dangote promise of cement exports is repeated nearly every year, Nigeria is desperate to be seen to be diversifying exports beyond oil. Most recently at this week’s FT Africa Summit where Dangote announced—to vice president Yemi Osinbajo’s hearing—that the date for cement exports from Nigeria will now be 2018.

A few people have raised concerns about the relationship between Dangote and the government and its impact on policy decisions. But if they thought things would change under president Buhari’s new All Progressive Congress (APC) government, which came into office in May 2015, they were mistaken. Barely three months after being sworn in, the vice president was leading a government delegation to Zambia to commission a Dangote Cement plant.

Since then, the vice president, with several ministers in tow, have also visited the Dangote refinery for an “inspection” even though it was mainly sand filling of the site going at the time. Early last year, in a separate visit to the Dangote refinery construction site, the Central Bank governor, Godwin Emefiele, said “more Nigerians need to think like Dangote” and pledged to support him as much as possible.

Perhaps unsurprising then that a Reuters investigation in June last year found Dangote’s companies had been receiving preferential foreign currency allocations from the Central Bank at a time when the Nigerian economy had been almost crippled by a dollar shortage.

Cementing his status
While Dangote is involved in many industries, his wealth—over 90% of his net worth—has come from his cement business. Dangote Cement’s 65% share of the Nigerian market means that it also sets the prices for the commodity in the country. And it has used this advantage to generate large profits—the gross margin on its cement was as high as 70% a few years ago and has slowly come down to just under 50% in 2016. 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.

Nigerians have almost come to accept paying over the odds for cement as a sacrifice worth making to have cement produced in the country.
In 2013, an analysis of the world’s top 15 cement producers revealed that while Dangote Cement’s revenues of $2.4 billion represented 2% of the cohort, its profits of $1.2 billion represented 13% of all net profits in the group. In that year, its net profit margin was 52% with the next most profitable producer—China’s Anhui Conch—managing a 17.8% margin.

Dangote has used the sentiment of “national pride” very cleverly to his advantage. The government and indeed many Nigerians have almost come to accept that paying over the odds for cement is a sacrifice worth making in the name of having cement produced in the country.

The Nigerian press also helps to propagate the story of Nigeria’s cement “self-sufficiency”. This self-sufficiency argument is never challenged with the simple point that it is easy to make that claim when the product is priced beyond the reach of the vast majority of Nigerians. If prices came down to global averages, would Dangote Cement be able to meet demand with its current production levels?

Dangote also regularly inundates Nigerians with stories of how he has put all his eggs in the Nigerian basket and how he is always betting on the country by investing more than any other foreign investor. Every now and again, he announces large investments in an industry (usually one favored by the government of the day) sometimes running into billions of dollars. The stories and announcements (which may, or may not, come to fruition) help to reinforce the narrative Dangote is always investing in Nigeria even when no one else is doing so.

The cost to Nigerians
[b]The nature of cement as a product that is too heavy and costly to transport and too tricky to smuggle has allowed the Nigerian market to be a captive one for Dangote.

In June 2016, the World Bank published a report examining the impact and costs of lack of competition in a number of industries in Africa. They found that African cement prices averaged $9.57 per 50kg bag compared with $3.25 globally. Put another way, Africans paid 183% more than people around the world for the same product.

A World Bank report showed Dangote has 90-year mining licenses for materials like limestone even though its cement plants have a 50-year life span.
The report also highlights how the Nigerian government had been phasing out import licenses for cement beginning in 2012 when Dangote ramped up cement production in Nigeria as well as the Central Bank of Nigeria banning the use of foreign exchange for cement imports. The World Bank report [page 54] also showed how Dangote had exclusive mining licenses for limestone and other additive materials for cement estimated to last for 90 years even though its cement plants have an estimated life of 50 years.

If Dangote’s relationship with the government allows it to make healthy profits at the expense of Nigerians, perhaps this can be mitigated by the taxes it pays to the government?

No chance.

Between 2010 and 2015 when Dangote cement earned around 1 trillion naira ($6 billion) in profits, it paid only 12 billion naira ($72 million) in taxes—a tax rate of just over 1%. It has done this through a particularly aggressive interpretation of a Nigerian investment incentive known as ‘Pioneer Status’.

The idea behind the pioneer status was to encourage investment in industries which the Nigerian government deemed in need of support. In return for investments in those industries, companies were exempt from paying taxes on profits from those investments for a maximum of five years.

However, the law was described as “most abused in certain quarters“, by Deloitte. No one has taken greater advantage than Dangote Cement. It has claimed pioneer status multiple times on the same plants by applying for a new exemption each time it extends the plant. The illustration below, taken from a recent presentation by the company [pdf, page 27] shows how it has done this.

Dangote Cement has claimed the pioneer status ten times across three plants by carefully scheduling a new one to start as an old one is ending. This puts Dangote’s interests at cross purposes with that of the country—Nigeria wants investments as quickly as possible but Dangote’s incentives are to spread out its investments as much as possible to avoid paying any taxes.

Recently, the government announced some “reforms” to the pioneer status law ostensibly to plug the gaps that had left it open to abuse. It changed the definition of pioneer industries from new ones to “immature” ones. It also announced that cement i.e. Dangote would be ‘phased out’ of the scheme.

But if any Nigerian thinks that this means Dangote will soon start paying taxes in the country, they ought to think again. Most recently, the government announced the extension of an order that allows companies to offset the full costs, plus an additional 30%, of the cost of providing infrastructure to the public. This original order was signed by president Jonathan in 2012 to run until April 2017. Given that this exemption comes with a built-in profit element, if the past is any guide to the future, Dangote will take advantage of it and not pay any taxes at least for the next five years.

The question as to why a businessman who has benefitted immensely from Nigeria—making him the world’s richest black man in the bargain—continues to expend so much time and effort to avoid paying taxes remains an interesting one.[/b]

The most damning of all
A monopoly or market dominant firm might be tolerable if it is “contestable”. That is, the monopolist’s position is made possible by low prices. In many areas, this is the case with Amazon—anyone is free to compete with them but it is quite difficult to match them on low prices as Amazon’s wafer-thin profit margins show it prioritizes gaining market share over profits. This was the case with many of America’s so called “robber barons”—as they expanded their market share, they consistently cut prices and improved services, none more so than John D. Rockefeller and his Standard Oil.

This is the most damning case against Dangote. For all the effective license to print money that Dangote Cement has become, the company’s track record for innovation is practically non-existent. Its 2016 report does not mention any specific research the company is funding to bring down the cost of its products or even housing in general. It simply sells cement in the same form as it has been made since the time of the Romans who invented the stuff and demands the highest possible price for it.

An episode in 2014 illustrates this point. I spent some time investigating and writing about the issue at the time and the World Bank also highlighted it in its report quoted above. In a brazen move, Dangote Cement and the Standards Organization of Nigeria (SON) tried to eliminate the 32.5 grade of cement from the Nigerian market to replace it with 42.5 grade, produced by Dangote cement.

This campaign was supposedly led by concerned members of the public but when I investigated, I found it was a faceless organization fronted by a non-existent person. The plan nearly succeeded but for the other cement producers lobbying hard and taking SON to court. The Nigerian Society of Engineers also came out strongly against the proposed ban arguing, correctly, that cement grades were not about inferiority but usage.

The 42.5 Grade cement Dangote Cement claimed it was introducing into the market was supposedly a better product than what previously existed in the market. Yet it did not try to introduce the product with a publicity campaign or aggressive pricing. Instead it sought to first eliminate the competition before undoubtedly introducing the more expensive product.

Has Nigeria as a whole benefitted from Dangote Cement? This is a surprisingly difficult question to answer in the affirmative.

There is no obvious infrastructure boom, it has not collected any taxes. When it comes to jobs, the company reported 16,272 employees across the 10 African countries in which it operates for 2016. Around 10,000 of those are in Nigeria—a tiny drop in the ocean for a country of 190 million with a major employment problem.

Nigerian Exceptionalism
The nature of the cement business across the world is that it tends towards oligopolies and uncompetitive practices. It is expensive to start a new cement plant and as previously stated, it is difficult and expensive to transport across long distances which means most cement is consumed close to where it is produced. Yet it is a vital product for construction and infrastructure development. As such, regulators across the world tend to watch over the industry very closely.

Nigeria’s government is the chief enabler of Dangote Cement ensuring it can extract fat profits from the market by subsidizing it with tax breaks
In 2014, the UK Competition Commission forced existing firms to sell some of their plants to create a new market entrant as a way of boosting competition. Last year in India, the Competition Commission, fined ten cement manufacturers a total of $1 billion for forming a cartel. In January 2016, South Korea’s Fair Trade Commission fined 6 cement producers a total of $168 million for price fixing. Spain’s National Commission for Markets and Competition handed down €29 million in fines to 23 cement companies in September 2016 after finding that they had been involved in a cartel where they shared price information via WhatsApp.

It is worth noting that in all the examples above, the countries in question have far more competitive cement markets and markedly lower profit margins than Nigeria and Dangote Cement. Yet the work of keeping these firms who produce a vital commodity on the straight and narrow never stops.

Nigeria is the complete opposite. The government is the chief enabler of Dangote Cement and ensures it can extract fat profits from the Nigerian market by subsidizing its operations with tax breaks and preferential foreign exchange allocations.

The government has bet everything on Dangote and looks set to do so again with the 650,000 barrels per day Dangote Refinery scheduled to come on stream in 2019. Its hopes of ending importation of petroleum products rest entirely on Dangote as several government officials and the oil minister have said publicly. Yet the economics of the refining business suggests the Nigerian government will once again pull out all stops to ensure Dangote’s refinery is profitable and this may even be at the expense of ordinary Nigerians. Such has been the corrosive relationship between the Nigerian state and the continent’s richest man.

It is not exactly surprising when companies collude to get customers to pay more than they should. “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices” said Adam Smith more than two centuries ago.

But to watch a government align so closely with a businessman with the attendant effect of denying its own citizens the many benefits of an important commodity is particularly painful to watch.

Catastrophe1:

No

What are you waiting for? I have my application letter ready sha in case

vision202020:

I swear. My friend told me to let us leave Abuja for Lagos in 2016. Now, he can pay 2 times of what I earn in Abuja. Abuja is for those who want to package with little or nothing in their bank account. Lagos is for those who want to hustle and look dirty.

So what are u waiting for? Let us pack to lag na

Hedonini:


Now that I know it's NLNG, I am tempted to believe. These organisations are extremely corrupt, and unbelievably corrupt corporate governance practices. They can allocate such huge salaries to themselves that are at variance with international industry best practices. It's corruption at play here, and it really sucks.

Corruption is different from Salary/Rewards.

Bonus is part of an official reward system.It would be on the books.

I am sure NLNG is extremely corrupt and their leaders are crooks, but I do not for a second think any staff there can OFFICIALLY make double or thrice what the highest paid staff in IOCs' Nigerian arms are making.

NOT POSSIBLE! That is pure NONSENSE!

Making such from corruption, I can believe. Making it as an official reward, NONSENSE!

When children that know nothing are talking nonsense and lying, one can tell.

ONNYX:


Your statement Sir is quite relative. The standard offer letter for many junior and intermediate positions (especially in Nigeria) are usually very simplistic stereotypes given with the understanding that they are doing you a favour.

Very senior positions in serious organizations state in very clear terms the incentive possibilities and this is usually couched as a contract or a memorandum of understanding often in multiple pages. in the course of my career I have seen this kind of contract in varied forms.

The most interesting ones I can recall right away are one for Nigerian hireling for a Swiss based Oil Trading Company and another for an Indian Candidate for a major fast moving Consumer Goods Company based in Ajao Estate. If you recall MTN in its first hirings also made great offers to the team put together to birth their operations here; recall the Aussie and the UNILAG guy?

In what part of this your write-up have you explained how "bonus paid" can be on an offer letter?

#1.6m a month, men some guys are stinkingly rich. When can l reach level now?