during a visit by Zambia’s Minister of Energy, Makozo Chikote, he stressed that business operations abroad are significantly cheaper due to stable electricity.

According to him, running a business in developed countries costs thirty percent less because of reliable electricity and better infrastructure.

“If there’s no power, there won’t be growth. Anything I’m going to do abroad will cost me maybe 30% cheaper,” he said.

Ethiopia’s Cement Factory: A Model for Industrial Growth

Dangote stated that his Ethiopian cement factory remains the group’s most profitable due to stable and affordable electricity supply.

“That’s why our most profitable cement factory is in Ethiopia. There’s no investment in power, ensuring long-term cost stability.”

He explained that Nigerian businesses, including the Dangote Group, spend heavily on power generation, significantly increasing operational costs.

Government Policies and Industrialisation

Dangote also criticised inconsistent government policies, saying they create uncertainty for investors and hinder long-term industrial growth in Nigeria.

“One of the problems of industrialisation is inconsistencies. It’s like playing football, and the government moves the goalpost backward.”

He urged the government to recognise that industrial success translates to increased tax revenue, job creation, and economic stability nationwide.

How Government Profits from Business Success

Dangote explained that Nigerian companies pay significant taxes, with the government collecting revenue at multiple levels from various businesses.

• 30% Corporate Tax is mandatory for companies operating legally within the country, ensuring national revenue generation for development.
• 7.5% Value-Added Tax (VAT) applies to goods and services, increasing costs for businesses while providing funds for public projects.
• 2% Education Tax supports the educational sector, helping to fund public institutions and improve literacy rates across Nigeria.
• 1% Health Tax is collected to support the healthcare system, ensuring better medical facilities for the growing population.
• 10% Withholding Tax applies to shareholder dividends, reducing profit margins while contributing significantly to national tax revenues.

“For every N1 we turn around in our cement business, 52 kobo go to the government in various taxes,” he said.

The Need for Stable Power and Policies

Dangote emphasised that industrialisation is crucial for economic growth, urging policymakers to prioritise electricity and policy consistency for investors.

His remarks reinforce concerns that power shortages and unpredictable regulations remain key barriers to Nigeria’s industrial competitiveness globally.

The post Dangote Identifies Unstable Electricity as Key Barrier to Nigeria’s Industrialisation appeared first on Housing TV Africa.

Speaking at the Banquet Hall of the State House, Abuja, during the opening session of a three-day summit organized by the Manufacturers Association of Nigeria (MAN) on Tuesday, Dangote highlighted the challenges this rate poses to job creation and the manufacturing sector’s growth and competitiveness.

Dangote stated, “Nobody can create jobs with an interest rate of 30%. No growth will happen.” He emphasized the need for new policies to protect domestic industries and provide an enabling environment for businesses, especially manufacturers, to thrive. He urged the government to take cues from leading countries in the West and East that actively protect their domestic industries.

READ ALSO: Dangote Group Renames Refinery Road in Honor of Herbert Wigwe

Africa’s richest man equated import dependence to poverty importation, saying, “Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity. Similarly, no affordable financing, no growth, no prosperity. There is no industrialization without protection. Ignoring these facts gives rise to insecurity, banditry, kidnapping, and abject poverty.”

READ ALSO: ‘We’re Unaware of Hike in Cement Price’ – Dangote Group

The CBN recently increased the Monetary Policy Rate (MPR) for the third consecutive time, from 24.75 per cent to 26.25 per cent, during its last Monetary Policy Committee (MPC) meeting.

The post Aliko Dangote Criticizes CBN’s Interest Rate Hike, Calls for Industrial Protection appeared first on Housing TV Africa.