soberdrunk:
When we tell them Dangote is not a "seasoned" entrepreneur, they will say it's "bad belle", "jealousy", they will say "what do you have", "are you rich" but isn't it becoming very obvious that all the sectors of of his business where he doesn't have "government induced monopolistic power" keeps packing up. First it was juice, then noodles, now flour......

Don't mind them.

SmartMen:

He can't regret the refinery cos no competition there as far as Nigeria is concerned!

And yet there were at least 28 licenses given for private refineries (starting as far back as under OBJ) before Dangote was granted a refinery license under Jonathan. Soon, when the refinery starts up, some of us our misguided siblings will start bitching about “monopoly”.

Creampro:

You are 100 percent correct.

If Government gives anybody Monopoly of a product, tell me why the person will not become billionaire in USD.

Imagine Gov gives you Monopoly of salt or Monopoly of cooking oil etc.

soberdrunk:

It's like fishing in a fish pond and being labelled the best fisherman compared to other fishermen that comb the rivers....

Where the “monopoly”?

Cement: LaFarge, Heidelberg, Scancem and BUA
Sugar: Flour Mills of Nigeria (Golden Sugar), BUA Group, etc.
Flour Mills: FMN (Golden Penny), Honeywell, Olam, etc.
Tomato Paste: Erisco, Jos Tomato, smugglers, etc.
Rice: Stallion Group, Olam International, Croscharis, etc.
Refinery: NNPC, Orient, 28 other licensees, etc.

jaems:
This is the best time to get his refinery working. I am not sure of which administration gave him the operating license anyway. It is going to shut down a lot of fraudulent importation business and probably drop the price of fuel. It will still be a monopoly nonetheless.

According to H.E Emir Sanusi, the problem of Nigeria is the issue of vested interest. Successive governments have intentionally destroyed the government's capacity just to enrich individuals.

What will it cost the government to set up multiple refineries?
Why does government award contract to private firms instead of equipping the ministries?

Dangote is only enjoying a tradition that has come to stay. Can we ask him not to take advantage of what is on ground? No! Anyone would. So, divesting from a business that does not give him the benefits of monopoly isn't a bad idea after all.

Because the FOUR refineries that the government presently owns is running well?

Simply doing more of the wrong thing will not make it right. Reality is the Nigerian govt SUCKS at business.

lancdoz:
They should make the bidding transparent and open to all so that people like us can bid for it

It is a publicly-listed company listed on the stock exchange, which means that anyone can go bid on it...

cr7lomo:

U said it all...how can the richest man in Africa not have a thriving business outside Nigeria

Look at shop rite , multi choice, mtn....these are south African businesses thriving outside south Africa, that's hw u know a good business man... Dangote just de use Nigeria make real money due to the monopolistic nature of government help...

First, Nigeria itself is an incredibly HUGE market with so many needs (for example, all of that massive infrastructure gap that needs to be bridged will requires tens of millions of tons of cement). Nonetheless, Dangote has plants in many African countries, including the biggest such as South Africa, Ethiopia, Cameroon, DR Congo, Zambia, Tanzania, Ghana, etc., and also exports products to other African countries.

And also

soberdrunk:
When we tell them Dangote is not a "seasoned" entrepreneur, they will say it's "bad belle", "jealousy", they will say "what do you have", "are you rich" but isn't it becoming very obvious that all the sectors of of his business where he doesn't have "government induced monopolistic power" keeps packing up. First it was juice, then noodles, now flour......

And also, the fear of Buhari is the beginning of mucho wisdom� they yaff started selling our properties

Aiyk2333:

Govt crippled Ibeto's booming cement business only to monopolize Dangote, plus top politicians laundering money, hiding it in his business all these gave rise to his wealth

Abegi, which “booming cement business”?

First, Ibeto is the ONLY Nigerian cement company that IMPORTS (and bags) ALL of its products, while ALL of the other companies currently produce ALL of their cement locally. FYI, government had allowed every Nigerian cement company (including the big foreign multinationals that have been based in Nigeria since the 1950/60s but continued to import and bag most of their products) to import a certain quota of cement until their local manufacturing plants were operational, and while ALL other cement companies (LaFarge, Dangote, BUA, etc) achieved domestic manufacturing capabilities while Ibeto was still importing ALL of its products up until 2017 or 2018 (when it finally signed contracts with Sinoma of China to build its manufacturing plants).

Furthermore, one of Ibeto’s biggest obstacles came, NOT from the federal government, but from his own ethnic ‘kinsmen’ in Ebonyi State who steadfastly refused to allow the Ibeto Group take control of the privatized Nkalagu Cement Company (which was sold to the Ibeto Group at about the same time that Sokoto Cement Co. and Bender Cement were sold to the BUA Group, Calabar Cement Co. was sold to Holcim/Flour Mills, and BCC Gboko was sold to Dangote Cement, with the Benue government under George Akume opposing that sale because they wanted “foreigners” - even though NO foreign company had bid for BCC). It was only until mid-2018 (more than a decade after the privatization sale) that Ibeto finally reached agreement with his own ethnic ‘kinsmen’ to assume control and modernize the Nkalagu plant.
.

nadiq1:
And also

And also, the fear of Buhari is the beginning of mucho wisdom� they yaff started selling our properties

Good to see some folks have not lost the ‘innocence’ of believing in fairy tales...

debaj10:
that refinery will break him.
d flour mill was owned by a south African company, Target, I think.
they used him as a front and made him chairman.
they removed him and gave his daughter director.
they later dumped it. I'm sure he was gloating when he bought it off them for small change.
…
by 2040 most western nations would have stopped producing fossil fuel engines.
once Iran and US ramp up production, prices will crash.
so year on year, world consumption is dropping.
Nigeria currently has 2-3 oil tankers on d high seas, without any buyers for our crude.
meanwhile, our present (high) consumption is actually based on smuggling and less than 5% required power generation.
imagine Nigeria with adequate, 24/7 power supply!
who will u sell petrol and diesel to?

Not true! Tiger Foods bought the company from Dangote but made a hash of running it...
After a few years of losses, they put it up for sale (it is a NSE LISTED company w/ PUBLIC shareholders) and Dangote bought 65% control.

I think the Dangote Industries Limited wants to focus on export alone and his tactically taken its hands off anything that has to do with import.Although I can't help but observe that Dangote Flour Mill always come under the surgery table all the time.It is really too late to reverse anything now that it has gotten to the Nigeria Stock Exchange, but in my honest opinion I think some of this companies should be kept because of the ripple advantage they create for other products within the conglomerates. Nestle had many food products and people grow up using them,hence they are die hard loyalty of even their other products that might not be competitive on a normal day like nestle waters.Moreover I believe Nigeria brands should always first be sold to Nigerian not teleported to Indian or Indonesian. The F.G should also allow pulls of funds accessible to investors like the pension funds and Sovereign Wealth fund.

NOETHNICITY:
Why should govt build and own refinery?
If I become president today, I will sell off our refineries and even nnpc.

What govt need to do is created the enabling environment required for the private sector to own refineries and many other things

You have my vote then!

Lovelyn451:
I don't use his product and he's not my role model

Good for you. It’s a free country (relatively)...

gypsey:
How much tax did he pay to the Government? the crooked Dangote doesn't pay Any taxes to the Nigerian GOVT.

Dangote Flour Mills is a NSE publicly-listed company and thus such info is easily available...
It paid over N7 billion in taxes (on N22.4 billion gross profits) in its last published annual report.

emmanuelpopson:

that is the basics bro... the world Is going green.. and fossil fuels are been phased out gradually. but my fears is.. is Nigeria prepared for the aftermath of this era. our gas would still be Useful... I do tel people that Africans are gonna be impoverished if oil money isn't coming again... the time fora Change of approach is now.. dangote or not. the Nigerian youths shd stand up and chart a pathway for this country to sustain itself..

Reasonably certain the world (and Africa, in particular) will still be using hydrocarbons in many forms for most (if not the rest) of our lifetime.

PrecisionFx:

Like I always say, Dangote isn't a real business man. All his businesses keep folding every year

Name one!
Because a US$361 million price tag doesn’t sound like “folding”.

Hedonini:

I am persuaded to agree. Why, for example, can't he compete with Indomie noodles in the noodles segment or with Chi in the juice segment? Why?

me too, i was persuaded to agree and i see his point... "a real business man is one who thrives when there is competition not one who thrives only in a monopoly"

But the people insulting him don't get the point....... Smh

TheAlchemist:


Your analysis is fearful but i believe dangote refinery is still a good investment.

i swear it really is fearful... It's looking like a late entry, cash in and cash out b4 oil is worthless thingy.....

chemgee:


Na wa ooo, so pple that think like this still dey naija, or r u based abroad? lemme know.
anytime I say this thing you just said on this forum or to my friends/colleagues they just dey look me like mumu

Now he who has ear let him hear. the moment the chinko man get a firm grip of electric car technology.. GAME OVER

FOR those saying naija has poor power supply bla bla bla... if dey told u 15yrs ago that u can charge ur phone inside a car/toilet/football field, you'll say issa lie, but hey, power bank happened no body can really predict the ICT and power industry... ya all think d world is waiting 4 us abi? let's continue foolishly fooling we selves with oil and not think about other means of forex.

BTW Mr man, Tesla is an American not chinko company

true!! It starts with one and then boommm!!! But then even the monopoly supporting government is already showing its head, imagine it discouraging Nigerians from buying electric cars, so the oil industry doesn't slide, instead of the said government to start diversity......

9jaRealist:




Pure comedy!
Selling a business and walking away with US$361 million is not “seasoned” business?! SMH

no iys not.... A seasoned businessman would have survived the competition

Cadec007:
no iys not.... A seasoned businessman would have survived the competition

He took a business that was bleeding money in the hands of Tiger Foods, turned it around into profitability and is selling it for $361m...
Not sure how you define "surviving the competition" but competition is NOT an end in itself, but only a means to the greater end - SUCCESS!

Cadec007:
me too, i was persuaded to agree and i see his point... "a real business man is one who thrives when there is competition not one who thrives only in a monopoly"

But the chickens insulting him don't get the point....... Smh

We got the point and are pointing out to him that there is NO monopoly...

Cement: LaFarge, Heidelberg, Scancem and BUA
Sugar: Flour Mills of Nigeria (Golden Sugar), BUA Group, etc.
Flour Milling: FMN (Golden Penny), Honeywell, Olam, etc.
Tomato Paste: Erisco, Jos Tomato, smugglers, etc.
Rice: Stallion Group, Olam International, Croscharis, etc.
Refinery: NNPC, Orient, 28 other licensees, etc.

Meanwhile, what exactly is "thriving" if turning around a business and selling it for a huge payday is not thriving? Even Warren Buffet sells some of the business that his Berkshire Hathaway controls and no rational being would argue that he is not "thriving" in business.

9jaRealist:


He took a business that was bleeding money in the hands of Tiger Foods, turned it around into profitability and is selling it for $361m...
Not sure how you define "surviving the competition" but competition is NOT an end in itself, but only a means to the greater end - SUCCESS!

ok

9jaRealist:


We got the point and are pointing out to him that there is NO monopoly...

Cement: LaFarge, Heidelberg, Scancem and BUA
Sugar: Flour Mills of Nigeria (Golden Sugar), BUA Group, etc.
Flour Milling: FMN (Golden Penny), Honeywell, Olam, etc.
Tomato Paste: Erisco, Jos Tomato, smugglers, etc.
Rice: Stallion Group, Olam International, Croscharis, etc.
Refinery: NNPC, Orient, 28 other licensees, etc.

Meanwhile, what exactly is "thriving" if turning around a business and selling it for a huge payday is not thriving? Even Warren Buffet sells some of the business that his Berkshire Hathaway controls and no rational being would argue that he is not "thriving" in business.

ok....

@PS sorry i really didn't mean it that way..

Cadec007:
ok....

@PS sorry i really didn't mean it that way..

No problem. I have edited that out because I see that sadly some misguided people insulted him as well.

ahiboilandgas:
u are poorly educated in bussiness olam is buying up several flour mill 400m dollars bua 360 dangote this is over 50 percent of the markets it called oligopoly while dangote is exiting the sector due to over capacity and low return on investing and investing in cement and oil which is an undisputed market share (blue water) go and read red and blue ocean strategy to understand what is happing there is no single industry in Nigeria that dangote run solely ...companies strive to create a nich space for sustainable income ...this is capitalism .....u needs schooling on marketing

help me tell all these people

some weeks back i was sharing my admiration for the owners of biggie foods and drinks, for daring to take on the giant NBC - Coca Cola, 7up and UAC - Gala in a highly saturated market, True Entrepreneurs usually are not afraid of entering a competitive market. The problem with Dangote is that he got a lot of support from government and truth is bitter only thrives in highly monopolistic environment.
The Nigerian Version of so called entrepreneurs are hardly creative simply follow successively trodden paths.

It would not be a crime if Dangote is focused on being referred to as Africa's King of Renewable Energy, for other posters that have expressed their concern about the long time viability of the Dangote refinery, it could be plausible, that is even one of the reasons that Dangote has stated he can only sell his petrol at export price to Nigerians.
I can not be too critical of Dangote, he studied the Nigerian environment and adapted to work within the requirement of the Nigerian environment to survive.
I hope he tries to make a name in the renewable energy industry that is the future.
Anybody can start a business, only those with uncommon vision can sustain it.

Wiseoldman:


Red Oil maami...

Great

poseidon12:


Yes Olam. It is a big conglomerate but it is owned by Asians.

Thanks 4 d enlightenment

9jaRealist:


Dangote Flour Mills is a NSE publicly-listed company and thus such info is easily available...
It paid over N7 billion in taxes (on N22.4 billion gross profits) in its last published annual report.

Thanks for the clarification

Olam is not an American company. Olam is own by Indians take note. Nigeria wake up.

Oyaa baba dangote make una come pay your tithe ooh 13.5bn ��