Africa’s richest man, Aliko Dangote, has disclosed that the Federal Government earns 52 kobo from every N1 generated through the operations of Dangote Cement.

Dangote made this known while speaking at the 2025 Taraba International Investment Summit held on May 21, where he emphasized the significant role taxation plays in government revenue.

According to him, the contribution of private sector investments to public finances is often underestimated, despite being a major driver of economic sustainability.

“I’m sure it might shock you that the federal government of Nigeria makes more money from our cement business than even we do in some cases. For every N1 we generate, 52 kobo goes to the federal government,” he said.

Taxation Remains Government’s Primary Revenue Source

Dangote used the opportunity to stress that governments do not necessarily need to own businesses to generate revenue. Instead, he argued that creating an enabling environment for private enterprises to thrive is more beneficial.

He noted that taxes collected from profitable businesses fund critical sectors such as healthcare, education, and infrastructure.

“We often say government has no business in business. But if that is the case, how do they fund development? It is through taxes,” he explained.

Drawing a comparison with global economies, Dangote pointed out that countries like the United States do not rely on direct ownership of oil assets to generate income.

“The American government doesn’t own oil blocks, yet they are among the largest producers globally. Their earnings come from taxation,” he added.

Investment Climate Key to Economic Growth

The Dangote Group founder also highlighted the importance of a stable and supportive investment climate in attracting both local and foreign investors.

He warned that foreign investors are unlikely to commit capital to any country where local businesses are struggling to survive.

According to him, strong domestic investment signals economic confidence and reduces perceived risks for international stakeholders.

“Foreign investors will not come if local investors are not thriving. It sends a wrong signal about the business environment,” Dangote said.

Commitment to Continued Investment in Nigeria

Despite economic challenges, Dangote reaffirmed his company’s commitment to expanding its investments in Nigeria. He said the group would continue to create jobs and support host communities through its operations.

Dangote Cement, one of Africa’s largest cement producers, plays a critical role in Nigeria’s construction and infrastructure sectors. The company’s scale of operations also makes it a major contributor to government revenue through taxes and levies.

Industry analysts say Dangote’s disclosure underscores the broader impact of large-scale manufacturing firms on Nigeria’s fiscal health.

Broader Economic Implications

The revelation comes at a time when Nigeria is seeking to boost non-oil revenue amid fluctuating global oil prices. Experts argue that strengthening the manufacturing sector could significantly improve government earnings through taxation.

Dangote’s comments also reignite conversations around the role of government in business and the need for policies that encourage private sector growth.

By prioritizing ease of doing business, regulatory stability, and infrastructure development, stakeholders believe Nigeria can unlock greater economic potential.

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The Enugu State Government has approved a major reform of its land administration system, unifying land use charge and ground rent into a single payment while reducing the combined cost by over 69 per cent, in a move aimed at eliminating illegal levies and improving the state’s investment climate.

The reform also includes a ban on the activities of non-state actors, popularly known as Ogbonecheagu, who have been accused of illegally collecting levies from investors and property developers across the state.

Governor Peter Mbah announced the decisions as part of his administration’s broader economic transformation agenda designed to remove barriers to development, curb revenue abuse, and restore investor confidence in Enugu’s land sector.

Under the new policy, property owners will now pay a Unified Land Use Charge annually through the Enugu State Internal Revenue Service (EIRS), regardless of whether their properties are located within estates or outside them. The harmonised charge replaces multiple payments that previously burdened residents, developers, and businesses.

The announcement was made at a stakeholder town hall meeting on land sector development held at the International Conference Centre, Enugu. The governor was represented by the Secretary to the State Government (SSG), Chidiebere Onyia.

Onyia said the Mbah administration was committed to building a transparent, efficient, and investor-friendly land administration system anchored on legality, digitisation, and accountability.

“Land is the legal foundation for housing, infrastructure, agriculture, commerce, and investment. Since inception, this administration has pursued deliberate reforms to modernise land governance, reduce uncertainty, curb abuse, and restore public confidence in the land tenure system,” Onyia said.

He explained that the reforms were guided by transparency, predictability, digitisation of records, and strict adherence to statutory processes for land allocation, registration, and development control. According to him, effective land governance also requires continuous engagement with communities, professionals, investors, traditional institutions, and citizens.

As part of enforcement measures, Onyia disclosed that a task force has been constituted to ensure compliance with the ban on illegal levies. He urged local government chairmen, traditional rulers, and presidents-general of town unions to convene meetings with groups involved in unauthorised levy collection and ensure such practices stop immediately.

Members of the public who are compelled to pay illegal charges were encouraged to submit evidence to Whistleblowing@enugustate.gov.ng for prompt government intervention.

The government’s actions followed the recommendations of a multi-stakeholder Committee on Land-Related Revenue and Administration, set up to address complaints of multiple taxation and revenue abuse in the state.

Speaking at the event, the Commissioner for Lands and Urban Development, Chimaobi Okorie, said the governor had introduced critical policy directions and legal instruments to support the reforms. These include an executive order declaring nine of the state’s 17 local government areas as urban centres to enable effective planning and structured infrastructure development.

He added that the administration had enacted the Enugu State Geographic Information System (ENGIS) Law, which now serves as a one-stop platform for land transactions and drives the full digitisation of land processes.

According to Okorie, land records in the state have been fully harmonised, eliminating missing files, while every plot of land can now be digitally tracked. He noted that applicants seeking Certificates of Occupancy (C of O) can apply online or visit government offices for seamless processing.

He further stated that the Property Protection Law signed by Governor Mbah guarantees the security of legitimate property ownership and protects investors’ assets.

The Managing Director of ENGIS, Chiwetalu Nwatu, clarified jurisdictional responsibilities for building approvals. He said buildings located in housing estates owned by the Ministry of Housing and the Housing Development Corporation must obtain approvals directly from the respective institutions, while approvals for houses in non-government estates within Enugu municipal area will be handled exclusively by the Enugu Capital Territory Development Authority (ECTDA).

Also speaking, the Executive Chairman of the Enugu State Internal Revenue Service (ES-IRS), Emmanuel Ekene Nnamani, said the newly signed Tax Law was designed to protect low-income earners while placing a greater tax burden on the wealthy. He urged residents to obtain their Tax Identification Numbers (TIN) free of charge and comply with tax filing requirements to enable accurate development planning.

Responding to questions from stakeholders, Onyia said the town hall meeting was convened to harmonise land matters in the state for the benefit of all. He directed the setting up of a committee, chaired by the ENGIS managing director, to address complaints related to layouts and submit practical recommendations within one week.

The reforms are expected to significantly reduce the cost of property ownership, eliminate illegal land charges, and position Enugu as a more attractive destination for real estate investment and economic growth.

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The Federal Inland Revenue Service has clarified that the controversial 4% Development Levy introduced under Nigeria’s new tax reforms is not a new tax, but a consolidation of multiple existing charges aimed at simplifying compliance and improving economic competitiveness.

The Federal Inland Revenue Service has moved to calm public concerns over the newly enacted Nigeria Tax Act and Nigeria Tax Administration Act, insisting that the 4% Development Levy being widely debated is not an additional burden on businesses.

In a statement issued on Tuesday, the agency said the levy merely merges several pre-existing payments—including the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy—into a single, predictable charge. According to the FIRS, this consolidation eliminates multiple agency-level collections, reduces compliance costs, and offers clearer fiscal planning for businesses.

The tax agency said the reform is part of a broader strategy to make Nigeria’s business environment more competitive, while providing long-term fiscal stability and restoring investor confidence.

It added that small businesses and non-resident companies remain exempt, ensuring that vulnerable enterprises are not exposed to additional financial pressure.

Tax analysts say the 4% levy reflects a global push for clearer and more coordinated tax structures. “The consolidation sends a signal to investors that Nigeria is moving away from fragmented, unpredictable levies and toward a modern tax regime,” a Lagos-based analyst told our correspondent.

Amid speculation that the government was rolling back Free Trade Zone incentives, the FIRS clarified that FTZs retain their tax-exempt status. Under the new law, FTZ companies may sell up to 25% of their goods locally without losing incentives, and have been granted a three-year transition period to adjust to the new rules.

On the newly introduced 15% minimum Effective Tax Rate for large domestic and multinational firms, the agency said the move aligns Nigeria with a global tax agreement endorsed by more than 140 countries under the OECD/G20 tax framework. Without adopting the rule, the FIRS warned, Nigeria risked losing substantial revenue to “Top-Up Tax” collections abroad.

The reforms also overhaul capital gains taxation—now termed “chargeable gains”—introducing incentives such as reinvestment relief for investors who redirect proceeds into Nigerian companies within the same year. Experts say this single provision could unlock new capital for startups, private equity, and emerging industries.

The FIRS maintained that the tax reforms were designed to strengthen fiscal stability, deepen investor confidence and ensure a more predictable environment for businesses.

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