"Tear Down This Cement Wall!"
Last week, Forbes released a report that showed Aliko Dangote’s personal worth of $11.2 billion constitutes actually constitutes 2.4% of the Nigeria’s GDP at $414 billion.
Let us put these figures in some badly needed context. John D Rockerfeller, one of America’s richest men ever, commanded a personal fortune of 1.53% of the US’ GDP at the time of his death. In fact, even today, the personal fortunes of Bill Gates and Warren Buffet, the two richest men in America, collectively fall short of 1% of the US’ GDP today.
Why am I sharing these statistics with you?...
Because statistics like this show the stark reality of economic inequality and opportunity in this country. Indeed, it is quickly approaching criminal proportions.
Now don’t get me wrong. Dangote might be wealthy because he is an amazing business man who works hard for his money and deserves it. After all, given our political climate doing any kind of business in Nigeria is not for the faint hearted. However, I contend that in Nigeria, it is the government’s economic policies as opposed to the sheer ingenuity or talent of Nigeria’s richest persons, that has resulted in this unusual concentration of the country’s wealth.
As should all know, Dangote is a man whose fortune he has built entirely on trade, domestic and international. In many ways, Dangote and his conglomerate are the nation’s store keepers, importing and selling to us panaceas for our most basic needs; food clothing and shelter. However, what is particularly interesting about Dangote’s businesses are that they are, almost without exception, successful by virtue of incredulous monopolies granted to him by government issued import licenses in industries well-guarded by an arsenal of import bans and unconscionable tarrifs. What is particularly shocking about this arrangement is that it almost always means the impoverished Nigerian consumer is paying far more than world prices for his most basic needs.
One rather ironic example of the impact Dangote’s monopolies have had on our development is in the area of infrastructure, where government has identified a deficit of $200 billion. Clearly, this far exceeds what the government can afford. Yet, cement, an integral ingredient for developing most kinds of infrastructure carries a 35% duty tax and costs $260 per metric tonne in Nigeria as opposed to Hongkong, another infrastructure needy country where cement costs $52 per metric tonne. As a result of our short sighted protectionism, Dangote’s cement empire stretches across West Africa and our treasury is worse off for it. You are forgiven for thinking the first thing a government that is serious about infrastructure will do is open up the cement market by totally deregulating it. Begging Dangote to crash prices on National Television is apparently easier.
And you know what? The tragedy of these policies is that the government and its private sector agents are quick to market this economic terrorism as pro-poor and pro-development. Unfortunately, several years of bad economics education in our country has allowed these social propagandists armed with government megaphones, non-existent job promises and aimless philanthropy to successful brainwash the average Nigerian into believing that the only way Nigerian businesses can survive is if they are insulated from the realities of an increasingly global market place through protectionist trade policies designed keep prices high and people poor. In the end, the majority who are harmed by protectionist trade policies must toil extra for a government appointed capitalist just to make ends meet.
Nigeria does not need accidental billionaires made by government fiat on the backs of the bottom billion. It needs conscientious social entrepreneurs who are not afraid to face the world.
Finally, President Goodluck, erase those import licenses and tear down this cement wall.
Written by Iyinoluwa Aboyeji
Now don’t get me wrong. Dangote might be wealthy because he is an amazing business man who works hard for his money and deserves it. After all, given our political climate doing any kind of business in Nigeria is not for the faint hearted. However, I contend that in Nigeria, it is the government’s economic policies as opposed to the sheer ingenuity or talent of Nigeria’s richest persons, that has resulted in this unusual concentration of the country’s wealth.
As should all know, Dangote is a man whose fortune he has built entirely on trade, domestic and international. In many ways, Dangote and his conglomerate are the nation’s store keepers, importing and selling to us panaceas for our most basic needs; food clothing and shelter. However, what is particularly interesting about Dangote’s businesses are that they are, almost without exception, successful by virtue of incredulous monopolies granted to him by government issued import licenses in industries well-guarded by an arsenal of import bans and unconscionable tarrifs. What is particularly shocking about this arrangement is that it almost always means the impoverished Nigerian consumer is paying far more than world prices for his most basic needs.
One rather ironic example of the impact Dangote’s monopolies have had on our development is in the area of infrastructure, where government has identified a deficit of $200 billion. Clearly, this far exceeds what the government can afford. Yet, cement, an integral ingredient for developing most kinds of infrastructure carries a 35% duty tax and costs $260 per metric tonne in Nigeria as opposed to Hongkong, another infrastructure needy country where cement costs $52 per metric tonne. As a result of our short sighted protectionism, Dangote’s cement empire stretches across West Africa and our treasury is worse off for it. You are forgiven for thinking the first thing a government that is serious about infrastructure will do is open up the cement market by totally deregulating it. Begging Dangote to crash prices on National Television is apparently easier.
And you know what? The tragedy of these policies is that the government and its private sector agents are quick to market this economic terrorism as pro-poor and pro-development. Unfortunately, several years of bad economics education in our country has allowed these social propagandists armed with government megaphones, non-existent job promises and aimless philanthropy to successful brainwash the average Nigerian into believing that the only way Nigerian businesses can survive is if they are insulated from the realities of an increasingly global market place through protectionist trade policies designed keep prices high and people poor. In the end, the majority who are harmed by protectionist trade policies must toil extra for a government appointed capitalist just to make ends meet.
Nigeria does not need accidental billionaires made by government fiat on the backs of the bottom billion. It needs conscientious social entrepreneurs who are not afraid to face the world.
Finally, President Goodluck, erase those import licenses and tear down this cement wall.
Written by Iyinoluwa Aboyeji
i love this. Dangote is over-charging Nigerians on everything and GEJ is backing him. Cement in Nigeria is even more expensive than in Benin Republic. What a fraud!
ReplyDeleteKalu
Nigeria's leadership is suffering from poverty of knowledge and as such people like Dangote will continue to be seen as someone helping the Nation rather than who he actually is...
ReplyDeleteHe is among the cabals in this country.
ReplyDeleteJULIUS
Lets look at it from the standpoint of the masses. If one man can do it then another man can also do it. Life is not fair and Nigerians must learn to choose which side of the divide they want to find themselves. The fruit of this nation is for all so we must all wake up, think creatively, act against all odds, act on our thoughts and learn how to fail and try again and again until we get there.
ReplyDeleteYes We Can.
Which standpoint? So many times when things seems easy going for some people, they think others are cowards. In as much as there are unserious elements but please dear, this country needs overhauling and you it. 50% for the person who gives government contract. Fools cant give contract. Quota system for the smart, the rest are fools? Let me reserve my comment
DeleteWhat is 2 be done now dat he is having his influence in all d facet of d economy,so who is 2 bell d cat?Bcos those to do that are all beneficiaries of his goodwill.
ReplyDeleteoga ur grammar too much..yes u had a great point here but i bet you 80% of your readers wont even understand what u re saying...come down
ReplyDeleteWhy will GEJ not give him monopoly of cement production when Dangote is one of the major financial of his political ambitions.Nigerians are wiser by the day and time will tell how Nigerians will break down the walls of corruption and injustices in this Country.Govt deceits is very clearing now ..
ReplyDeleteWELL TO MY OWN COMMENT, DANGOTE, OBASONJO, GOOD LUCK, BABANGIDA, ADENUGA, AND THE REST OF THEM THEY ARE ALL CRIMINALS, THEY CAN ONLY FOOL US ONCE BUT NOT ALWAYS, EVERY ONE HAS KNOW THERE SECRET NOW, NIGERIANS NEED TO WAKE UP AND BE ALERT, THAT IS WHY AM TOUCHED WHEN I SEE THIS SET OF PEOPLE CALLED BOKOHARAM KILLING INNOCENT SOULS, THEY SEE THE GOVERMENT THEY DONT GO TO THEM BUT THEY KEEP ON KILLING PEOPLE WHO CANT EVEN FEED THEM SELF ONE SQARE MILL,
ReplyDeleteIYINOLUWA,LETS GET THE FACT STRAIGHT FIRST.DANGOTE IS THE NO 463TH IN THE WORLD WITH NET WORTH OF $2.1B AND NOT $11.2B.
ReplyDeleteWE ALL KNOW THAT DANGOTES FATHER WAS A MERE TRADER WHO DID NOT EVEN OWN A SHIP OF HIS OWN.AT A POINT IN THE EARLY 90'sHIS EMPIRE WAS BEGINNING TO CRUMBLE.THOSE WHO WERE FAILIAR WITH APAPA LAGOS WILL KNOW WHAT IAM SAYING.SUDDENLY OBASANJO CAME TO POWER ANDOVERNIGHT HE WAS TURNED TO A BILLIONAIRE NO MORE IN NAIRA BUT IN DOLLARS!!!
TELL UNTIL EARLY 2001/2002 WHEN DANGOTE AQUIRE THE OLD BENUE CEMENT COMPANY HE HAD NO BUSINESS IN THE INDUSTRY.TELL SOMEBODY,HOW MANY BAGS OF CEMENT IS THE COMPANY SELLING AND ADDED TO ALL THE COMPANIES WHICH ARE MOSTLY BUYING AND SELLING COMPANIES /THEN GIVE ME THE TOTAL FIGURE AND I WILL TELL YOU THAT WE HAVE A BOGUS FIGURE HERE.
TELL ME SOMEBODY,HOW MANY BILLIONS OF NAIRA CAN YOU GET AS PROFITS SELLING SUGAR AND NOODLES ?HOW MUCH IS THE MANUFACTURER OF THE SUGAR GETTING FROM BRAZIL HIS STRONGHOLD ON SUGAR?
I THINK OBASANJO WHO MADE HIM THE CHAIRMAN OF PORTS OPERATION THROUGHOUT HIS 8TERMS SHOULD HAVE ANSWERS TO SOME QUESTIONS FROM NIGERIANS?IT IS NOT ONLY BODE GEORGE THAT SHLD GO TO PRISON MAN Y PRISONERS ARE WALKING FREE IN NIGERIANS AND ARE STILL RECEIVING NATIONAL HONOURS?
ALL THOSE UNDERCURRENT ACTIVITIES HE MANIPULATED AT THE STOCK EXCHNAGE?AND THE SEVERAL BILLIONS OF NAIRA HE OWES BANKS THRU UNPROTECTED LOANS ARE STILL PART OF HIS FORTUNES?WHILE THE LIKES OF ERASMUS AKINGBOLA OF INTERCONTINENTAL BANK AND MADAM IBRU OF OCEANIC BANK ARE FROM NATIONAL DISHONOUR(for stealing from themselves,i have never seen such set of pple before,how can u be stealing from something that belongs to u?wat a pathological thieves?)THE LIKES OF DANGOTE WHO HAPPEned TO BE THEIR ACCOMPLICES ARE WALKING FREE AS HONOURABLEMEN?INDEED "ANTHONY REFRRED TO THE DISHONOURABLE MEN AS HONOURABLE WHEN HE REALLY MEANT THEY WERE DISHONOURABLES"FOR THOSE WHO READ JULIUS CEASAR THEY KNOW WHAT IAM SAYING.
something is very sure,one day monkey will go to market but will never return.THE DAY OF RECONNING,AND IT IS CLOSE BY.