The Nigerian business landscape is controversial as allegations of monopolistic tendencies and financial misconduct have been levelled against one of its most prominent businessmen, Aliko Dangote. Accusations are swirling around the Dangote Group’s involvement with the Central Bank of Nigeria (CBN) and its recently suspended governor, Godwin Emefiele. These allegations, coupled with President Bola Ahmed Tinubu’s administration’s apparent cold shoulder towards Dangote, paint a complex picture of corporate influence and political manoeuvring.
The commissioning of the 650,000 barrels per day was a significant statement from Godwin Emefiele, the then-governor of the CBN-marked Dangote Refinery. He revealed that the Dangote Group had repaid 70% of the loans to construct the refinery, a project that had seen its costs escalate from an estimated $9 billion to $18.5 billion. According to Emefiele, this financial commitment included 50% equity investment by Dangote and 50% debt finance sourced from both domestic and foreign banks.
Emefiele highlighted that the CBN had played a pivotal role in the project by providing N125 billion for domestic currency requirements and ensuring the availability of foreign exchange to pay for imported equipment. Despite the initial scepticism, Emefiele proudly declared, “They thought we couldn’t do it, but we’ve done it.” This statement raised eyebrows, leading many to question the extent of the CBN’s involvement in what was supposed to be a private venture.
The financial dealings between the Dangote Group and the CBN have not escaped scrutiny. A petition submitted to President Tinubu by social justice advocate Ahmed Fahan accused Dangote of grossly violating CBN’s forex guidelines. The petition, citing Dr Ope Banwo’s 2016 exposé, alleged that Dangote had siphoned $3.4 billion through the CBN using Form A, a method that bypassed the legal route of Form M, resulting in significant financial losses for Nigeria.
These allegations claim that funds intended for foreign investments and factory constructions in countries like Congo and Liberia were instead funnelled into Dangote’s overseas accounts. The petition further alleges that several implicated banks facilitated these transactions at the CBN rate, contrary to the directive to source funds from the interbank market. This financial manoeuvring is said to have severely undermined Nigeria’s economic stability.
Amidst these allegations, Dangote’s response has been defensive. In a recent statement, he announced that his company would halt its plans to enter Nigeria’s steel industry, citing fears of being labelled a monopoly. Dangote emphasized that his group’s operations add value by transforming local raw materials into products and insisted that the monopoly accusations were unfounded. He pointed out that when his company entered the cement industry, it was not the only player, and other companies received similar or even greater incentives.
However, the claims of monopolistic practices have not been easily dismissed. Critics argue that Dangote’s dominant position in multiple sectors, including cement, sugar, and salt, has stifled competition and innovation. This perception is further compounded by the substantial financial backing and preferential treatment his projects have reportedly received from the CBN.
The Tinubu administration’s apparent distance from Dangote is not without reason. The allegations of financial impropriety involving Emefiele and the CBN have cast a shadow over Dangote’s business dealings. The petition against Dangote, which details a decade-long scheme of forex guideline violations and financial siphoning, has prompted calls for a thorough investigation.
In light of these revelations, President Tinubu’s administration has shown little inclination to offer Dangote the same level of support and partnership that characterized previous governments. The administration’s focus on transparency and accountability in financial dealings appears to be at odds with the alleged misconduct associated with Dangote’s operations.
The petition submitted to President Tinubu urges a comprehensive investigation into the alleged violations and demands that the stolen funds be returned to Nigeria’s treasury. It calls for the involvement of agencies such as the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices Commission (ICPC), and the Department of State Services (DSS) to ensure that those responsible are held accountable.
This push for justice aligns with President Tinubu’s broader agenda of combating corruption and fostering economic integrity. By addressing these allegations decisively, the administration aims to send a strong message that financial misconduct and monopolistic practices will no longer be tolerated.
The Dangote saga serves as a critical test for the Tinubu administration’s commitment to rooting out corruption and ensuring that all players, regardless of their stature, are subject to the rule of law. Whether Dangote can navigate these turbulent waters and restore his reputation remains to be seen, but the call for justice and financial integrity has never been louder.