Dangote Blames Nigeria’s Industrial Struggles on Unstable Electricity
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Aliko Dangote, President of the Dangote Group and Africa’s wealthiest man, has attributed Nigeria’s industrialisation challenges to chronic electricity instability, arguing that the high cost of power in the country makes running businesses significantly more expensive than in developed nations.
Speaking during a visit by Zambia’s Minister of Energy, Makozo Chikote, at the Dangote refinery in Lekki, Lagos, Dangote revealed that operating a business in Nigeria is up to 30% more expensive compared to developed countries due to the lack of reliable power supply.
“Anything I’m going to do abroad will cost me maybe 30 per cent cheaper than here,” Dangote explained. “Abroad is plug-and-play. You just build a factory and connect to the network. But in Nigeria, we have to invest heavily in generating our own electricity, which doesn’t happen in developed nations.”
Ethiopia’s Advantage: Stable Power, Higher Profits
Dangote cited Ethiopia as an example of the transformative power of reliable electricity. According to him, his cement factory in Ethiopia is the group’s most profitable because of the country’s stable and predictable power supply.
“There’s no investment in power there. They gave us power at the same rate for five years. We plan, and it’s a one-price electricity continuously,” he said, contrasting this with Nigeria, where fluctuating power costs and inconsistent supply disrupt business operations.
Before embarking on his journey into industrialisation, Dangote said he researched why previous attempts to industrialise Nigeria had failed, including efforts by his grandfather. His conclusion: the lack of stable electricity was a key factor.
“If there’s no power, there won’t be growth,” he emphasised, linking the nation’s underdeveloped manufacturing sector to its unreliable energy infrastructure.
Policy Inconsistencies Also to Blame
Beyond electricity woes, Dangote pointed to inconsistent government policies as another major hindrance to Nigeria’s industrial development. Using a football metaphor, he explained, “It’s like being about to score a goal, and then the government moves the goalpost behind you. You have to turn around, facing new challenges just to reach the goal again.”
Dangote argued that Nigeria’s unpredictable regulatory environment disrupts business planning and discourages long-term investment.
He urged the government to recognise the mutual benefits of industrialisation, noting that businesses are major contributors to government revenue through various taxes. “For every N1 we turn around, 52 kobo goes to the government in taxes,” he said, highlighting the corporate tax, value-added tax, education tax, health tax, and withholding tax that businesses pay.
Industrialisation: A Win-Win for Nigeria
Dangote stressed that industrialisation is vital for Nigeria’s economic development and argued that if businesses fail, the government is one of the biggest losers due to lost tax revenue.
His comments come as Nigeria continues to grapple with a challenging business environment marked by erratic power supply, high operating costs, and inconsistent policy frameworks—issues that have long hindered the country’s industrial growth.
With his vast investments spanning cement, sugar, salt, and now the largest oil refinery in Africa, Dangote’s insights highlight the urgent need for Nigeria to stabilise its power sector and streamline its regulatory landscape if it hopes to achieve meaningful industrialisation.
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