The refinery plans to issue 3 billion ordinary shares at $0.35 each, setting the valuation and placing the facility among the most valuable privately held industrial assets in Africa.

Investors have shown strong interest, with indications that demand has already doubled the target before allocation closes.

The minimum entry for investors stands at 1 million shares, costing $350,000. Subscriptions can then rise in blocks of 500,000 shares, while investors will also remain locked in for 365 days after allotment.

The funds will support expansion work, logistics systems, storage capacity, and other corporate needs. The refinery also reveals possible moves into related petrochemical operations, although details are broad at this stage.

The facility, which began production in 2024 after years of construction that cost an estimated $20 billion, processes about 650,000 barrels of crude per day. Output now includes diesel, aviation fuel, naphtha, and premium motor spirit.

Investor appetite has stretched beyond Nigeria as institutional investors and diaspora buyers have shown strong participation. Demand levels suggest oversubscription before the process closes.

Femi Otedola has confirmed plans to invest $100 million, drawing from proceeds linked to his Geregu Power stake sale. His entry adds to the high-net-worth participation in the offer.

The size of the valuation and the level of demand have renewed discussion around a possible future listing. No timeline has been set, but there are expectations that a public offer may follow at some point.

Aliko Dangote has previously indicated interest in listing the refinery on capital markets. The current placement is seen as an early step that could expand ownership ahead of any future initial public offering.

The refinery’s scale already places it at the centre of Nigeria’s energy supply chain. It has reduced dependence on imported fuel and created new export channels. Analysts say this position strengthens its appeal to global investors looking for large infrastructure assets with foreign exchange potential.

The implied valuation exceeds the market value of most listed companies on the Nigerian Exchange when taken individually. This comparison has added weight to discussions about how deep investor appetite could run if a full listing eventually takes place.

The private placement is currently attracting commitments from local and international investors, with the level of demand showing strong confidence in the refinery’s long-term production capacity and its role in regional fuel supply.

The recognition was announced at the 2026 Brand Africa 100: Africa’s Best Brands rankings unveiled in Addis Ababa, Ethiopia. 

The annual survey, regarded as Africa’s most extensive consumer-led brand study, covered 30 countries representing more than 85% of the continent’s population and economic output.

Dangote ranked first in aided recall, ahead of MTN and Vodacom. MTN, however, led in spontaneous recall, with Dangote coming second in that category and Trade Kings in third place.

The report also ranked Dangote as the continent’s leading industrial brand and placed it first among African brands seen as contributing to a better society. MTN, DStv, Shoprite/Checkers and Trade Kings followed in that category.

Across the board, Brand Africa noted that African brands continually hold a small share of visibility, accounting for 15% of the Top 100 list. European brands made up 38%, North American brands 28%, and Asian brands 19%.

Brand Africa Founder and Chairman, Thebe Ikalafeng, said African consumers still need to strengthen support for locally made products.

“Converting goodwill towards African contribution into admiration for African brands is the most urgent commercial opportunity for the continent. It is not enough for Africans to believe in Africa, they must buy Made-in-Africa,” he said.

Dangote also placed second in the sustainability and social impact category, which recognises brands contributing positively to society and the environment.

The rankings placed Dangote, MTN Group and Ethiopian Airlines among Africa’s strongest indigenous brands, though global names such as Nike, Adidas, Samsung, Apple and Coca-Cola topped the overall Top 100.

The report on Africa’s most admired brand also highlighted recognition for Dangote Industries’ Group Chief Branding and Communications Officer, Anthony Chiejina, who was named among Africa’s 100 Most Influential Chief Marketing Officers under the ACMO100 list.

The initiative, run in partnership with Brand Africa, African Business magazine, MIPAD and African Media Agency, recognises marketing leaders bolstering brand growth and reputation across the continent and diaspora.

Chiejina was among 17 Nigerians and 20 West African executives selected for the list, based on research covering industry influence, leadership and contribution to brand development.

The latest recognition adds to earlier honours, including Dangote Industries’ induction into the Brand Africa Hall of Fame after years of consistent performance in the rankings. 

Aliko Dangote also received a Lifetime Achievement Award for his contribution to industrialisation and for building one of Africa’s largest indigenous business groups.

Speaking on Tuesday, February 17, at the launch of the National Industrial Policy 2025, Dangote expressed optimism that current government reforms are beginning to yield tangible results for the manufacturing sector.

Despite the Naira closing at N1,335.96 in the official market and trading around N1,388.77 in the parallel market yesterday, Dangote believes a stronger currency is achievable through aggressive import substitution.

Manufacturing over Revenue

While a stronger Naira typically reduces the government’s nominal revenue from dollar-denominated collections, Dangote argued that the broader economic benefits, specifically lower operational costs, outweigh the fiscal drawbacks.

“I can assure you that, with proper measures to block excessive imports, the naira could reach N1,100 this year if we are lucky. The challenge is that a stronger naira could reduce government revenue… but it would also lower costs across the economy. The focus should be on local manufacturing,” Dangote stated.

The Billionaire Consensus?

Dangote’s outlook aligns with recent bullish sentiments from fellow billionaire and First HoldCo chairman, Femi Otedola.

Otedola previously suggested the Naira could even trade below N1,000/$ by year-end, citing a massive reduction in petroleum imports and boosted local oil and gas production as primary catalysts.

Market Snapshot (Feb 17, 2026)

The Central Bank of Nigeria (CBN) and parallel market data reflect a currency currently in search of stability:

The optimistic projections from Nigeria’s top industrialist hinge on the lucky convergence of policy implementation and a drastic reduction in the country’s import bill.

If the Dangote Refinery and other local manufacturers successfully curb the demand for greenbacks, the N1,100 target moves from a prediction to a plausible macroeconomic reality.

He made this call while hosting participants of the Global CEO Africa Programme from Lagos Business School and Strathmore Business School, Nairobi, after a tour of the Dangote Petroleum Refinery & PetroChemicals in Ibeju-Lekki, Lagos.

Dangote noted that with the right investments, Africa has the potential to grow and compete globally.

“There will always be challenges. Life without challenges isn’t exciting. You hope for the challenges you can overcome—not the ones that overwhelm you.

 “We, as Africans, must stop taking our money abroad. We should invest it here to build our countries and the continent. As for me, I don’t take my money out of Africa. If we don’t show confidence in our economies and leadership, foreign investors certainly won’t. After all, we know our leaders better than anyone else. That money being taken out of the continent should be left here, where it can benefit everyone,” he stated.

Dangote stressed that while many African countries have achieved political independence, they are still largely economically dependent.

He expressed concern about the continent’s growing population in the midst of limited job opportunities.

He also emphasized the need for a strong banking sector, a robust manufacturing base, and a thriving agricultural sector to drive Africa’s economic growth.

The Global CEO Africa Programme is a joint initiative by Lagos Business School and Strathmore Business School in Nairobi, aimed at nurturing business leaders who view Africa as a single market and are committed to unlocking the continent’s vast potential.

His departure is part of a deliberate succession plan, confirmed in a corporate notice signed by the company’s secretary, Temitope Hassan. The company’s leadership transition has been in motion, and now, the date is locked in.

Aliko Dangote has been more than a nameplate on the board. He built this company from scratch into Nigeria’s top sugar producer. His tenure saw massive capital projects roll out across Adamawa, Taraba, and Nasarawa, a long-term bet on local production over imports. 

These projects were designed to change how Nigeria feeds itself and how the industry runs. For shareholders, his legacy is measurable, a 51% jump in revenue just last year.

The company’s statement reads: “In line with the principles of good corporate governance and succession planning, Dangote Sugar Refinery Plc hereby announces the retirement of our esteemed Chairman of the Board of Directors of the Company, Alhaji Aliko Dangote (GCON), effective June 16, 2025.”

Arnold Ekpe, a current independent non-executive director, will take over as Chairman on the same date. Ekpe is no stranger to high-stakes boardrooms, he’s the former Group CEO of Ecobank and has served across multiple sectors. The company believes he’s got the range to lead in a changing market.

“Following a rigorous selection and transition process, the Board is pleased to announce the appointment of Mr. Arnold Ekpe, Independent Non-Executive Director as the new Chairman of Dangote Sugar Refinery Plc. effective 16th June 2025,” the company said.

Ekpe will be taking the wheel at a time when the sugar industry is facing deep structural change. The federal government is pushing harder on backward integration policies. 

Local production is being incentivised, and import-heavy models are being challenged. That’s a good thing for companies ready for whatever comes. It also means the next phase requires someone who can navigate financial headwinds, inflationary pressure, and potential regional expansion.

Sources close to the company have noted possible moves into Ghana, where a $162 billion annual sugar import bill is being eyed as an opportunity. That could be part of Ekpe’s early playbook. With his banking background and deep understanding of regional markets, such a move wouldn’t be far-fetched.

For Dangote himself, this is a calculated exit, he’s leaving on a high, handing over a profitable business with a strong balance sheet and clear strategic direction. That’s rare in this environment, and it’s not going unnoticed.

The board acknowledged the moment, adding: “We welcome Mr. Ekpe to his new role and look forward to the next chapter in our Company’s journey under his leadership. We also express our deep appreciation to Alhaji Aliko Dangote for his years of exemplary service and unwavering commitment to excellence.”

The likes of Aliko Dangote, Mike Adenuga, Leo Stan Ekeh, Segun Agbaje, Tony Elumelu, and corporates like GTCO (Guaranty Trust Holding Company), Zenith Bank, Zinox, Globacom, among others, have at one time or another faced a blizzard of blackmail.

The blackmailers’ intents are multifarious: to make easy money (ransom), damage the reputation of their target, ruin an enterprise, or inflict emotional trauma on their victims.

In the past few years, several multinationals have left the country. On paper, some of the multinationals claim forex crunch, rising cost of doing business and in some cases, their inability to remit their profits out of the country to service loans in their home countries or elsewhere as reasons for exiting Nigeria, Africa’s largest market for all products and services.

But those who ever cared to investigate the cause of the unprecedented exodus of these multinationals would easily point to blackmail as the chief reason for the mass exit of these mega corporates as well as a major reason why other foreign investors were frustrated from investing in Nigeria.

The Nigerian bureaucracy can blackmail you out of business by denying you all necessary niceties, documents and requirements that would enable you set forth or grow your enterprise.

How about this? In September 2023, when President Bola Tinubu attended the G20 Summit in India, one of his first assignments was a meeting with Mr. Prakash Hinduja, Chairman and CEO of the Hinduja Group of companies, a conglomerate with a total asset portfolio exceeding $100 billion.

The Indian billionaire lauded Tinubu and pledged to invest in Nigeria only because of his confidence in the Nigerian president. But he did not fail to remind President Tinubu how he was frustrated years back when he attempted to invest in Nigeria.

His exact words:

“I have had paperwork stalled in Nigerian bureaucracy for over one year, especially in FCT. But I knew that you would be purpose-driven in this endeavour and God will help you to turn Nigeria’s rich promise into rich reality for all of its citizens.”

Any discerning mind would notice the rebirth of hope in an investor who had been frustrated out of Nigeria by Abuja bureaucracy. In case you don’t get it, Mr Hinduja was referring to another type of common blackmail in Nigeria. “If you don’t see us, you won’t get the support you need.” Plain bribery and corruption which runs in the civil service.

In the United States, a country with unapologetic capitalist culture, blackmail is considered a serious crime under federal law and every state law.

Culprits can be jailed and/or punished with huge fines in some cases. The same applies in Europe and Asia where the blackmailer is neither spared nor pampered.

Nigeria has a panoply of laws including the Cybercrime Act to deal with corporate blackmailers. However, the laws are made weak because, in some cases, the legal processes are convoluted and drag leisurely, making the suspects exploit loopholes within the system to dodge conviction.

Corporate  blackmailers are like the cunning fox. They know that reputational damage is a high risk for their victim; hence, they often drag the case in a court of law to keep it perpetually on the front burner of public discourse in the media.

But truth be told, these blackmailers are the real enemies of Nigeria and President Tinubu. For while Tinubu is making genuine efforts to woo investors to Nigeria, blackmailers are busy rubbishing existing investors and especially indigenous investors. If we don’t treat our indigenous investors well, how do we expect a foreigner to invest in our economy? This is the paradox and the real reason Tinubu should come hard on corporate blackmailers.

A few instances of corporate blackmail and embarrassment. Nigeria’s highly successful business honcho, Mike Adenuga, had his office brusquely raided in 2006 by operatives of the Economic and Financial Crimes Commission (EFCC). The raid and ‘arrest’ of Adenuga were widely exposed in the media.

At the end, it turned out that Adenuga had nothing sleazy in his closet that the accusers could use to nail him in the court of law. But he was sufficiently terrified and blackmailed such that he had to go on temporary exile from Nigeria to Ghana to the UK.

Another Nigerian business success story, Aliko Dangote, has been in and out of blackmail, sometimes from competitors, career blackmailers who want a chunk of his money, or even public institutions who, rather than help his business empire to thrive and keep thriving, prefer to bring him down.

The most recent of such serial blackmail is the running campaign to discredit his $20 billion refinery. First, they claimed it was non-existent, and that failed.

They switched to, it can never take off, which also failed. They tried the fib that the refinery was producing low-quality products; this also failed.

Then, there was that disingenuous yarn that he had no approval, no licence for the project, yet the same Federal Government acquired 7.5% of an unlicensed company shares with public fund? This, again, failed to fly. There were many more, but they all crashed, as does every lie.

Then, there was the failed but long-drawn corporate blackmail against Leo Stan Ekeh, the listless and gifted founder of the Zinox Group, a global conglomerate spanning ICT, e-commerce, real estate, pharmaceuticals, entertainment, and more. His case is such that pools tears in the eyes.

A case of a fry threatening to swallow a barracuda. Several studies have identified envy, money (ransom), extreme competitiveness, desire to tarnish a reputation, a knack to hurt an enterprise and inflict emotional pain on the business owners as some of the drivers of corporate blackmail.

In some cases, it may just be one of the factors named above. But in the case of Ekeh, it’s a combination of envy, extortion, and reputational damage.

The case of Ekeh is one that tasks your state of sanity. It got me thinking about how much premium Nigerians, nay Africans, place on their brightest and best, especially those who by sheer dint of hard work, tenacity, and courage to dare the odds, burrowed their way from the lowest nadir of their enterprise to the zenith of it.

Nigerian entrepreneurs like Ekeh and many others across the country built their businesses from scratch. They deserve praise for their industry and deserve to be protected from blackmail hawks.

The various but failed attempts to link Ekeh and any of the companies associated with his name to unhealthy corporate governance smacks of desperation and a primitive show of disrespect for a man whose collateral is integrity. Any African who plays big in the Africa ICT marketplace knows that without integrity, you cannot have as much as a handshake with over 31 global brands like Microsoft, Apple, HP, Samsung, IBM, Cisco, Starlink, among others. Zinox Group does.

Every Nigerian government at national and sub-national level claims they are wooing foreign investors. But they forget that how Nigeria treats her indigenous investors will influence how foreign investors perceive the Nigerian market.

You cannot expose your home-grown investors to the vagaries of blackmail and treachery and expect foreign investors to trust you. This is the task before Tinubu. He must cleanse the corporate ecosystem of both systemic and individual blackmailers.

Gaya, a Public Policy Analyst, writes from Kano

Dangote Refinery, with a daily production capacity of 650,000 barrels, has seen low local demand for its petroleum products, prompting the company to consider alternative markets abroad. 

Reports reveal that the marketers are unhappy with the Refinery’s decision to lower its diesel price from ₦1,200 per litre to ₦900, which they argue undercuts their operations. 

Despite offering competitive prices, Dangote Refinery struggles to sell its diesel locally, managing only about 29 tankers per day. In light of this, most of the refinery’s diesel and jet fuel is exported.

Devakumar Edwin, vice president of Dangote Industries Limited, highlighted these issues during a recent media interaction. 

He explained that the reluctance of local marketers to purchase products has forced the refinery to look beyond Nigerian borders, exporting diesel that meets European standards. 

Edwin also confirmed that petrol production had commenced at the refinery, with further plans to increase local supply if demand rises. However, if Nigerian marketers or the Nigerian National Petroleum Company Limited (NNPCL) fail to lift the products, Dangote Refinery will have no choice but to continue exporting, as it currently does with other petroleum products.

The refinery’s initial vision, as Edwin noted, was to reduce Nigeria’s reliance on imported petroleum by refining crude oil locally. However, the company has faced challenges in securing crude for its operations. 

According to Edwin, the refinery now imports crude from countries such as the United States and Brazil, as domestic supply is insufficient. This shift in strategy undermines the refinery’s original goal of refining and distributing locally sourced crude oil to meet Nigeria’s demand.

Edwin frowned at the unexpected challenges, especially considering the refinery was designed to bolster Nigeria’s economy by adding value to local crude. He stated that despite the facility’s capabilities, Nigeria continues to export crude oil and import refined products, a cycle that has persisted for decades. 

He reiterated that while Dangote Refinery is ready to supply the Nigerian market, it will prioritise international buyers if local players do not engage.

In March, Dangote Refinery began exporting naphtha, followed by low-sulphur fuel oil in May, and started selling diesel and jet fuel domestically in April.

By June, it had started exporting diesel compliant with European regulations, further reflecting its pivot towards international markets due to inadequate domestic patronage.

The refinery owner said as soon as his company finalises modalities with the Nigerian National Petroleum Company Limited (NNPCL), the product will hit the market.

“Our PMS (Premium Motor Spirit) can be in filling stations within the next 48 hours depending on NNPCL,” he said.

Asked to speak on the pricing of petrol from his refinery, Dangote said, “It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.

“As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market.

He declared that “it’s a celebration day” for Nigerians and assured all citizens that they “are now going to have good petrol while the engines of your vehicles will last longer. You will not be having an engine issue, which a lot of us were having. It won’t happen at all”.

“The quality here will match that of anywhere in the world; US, America, we will make sure that nobody will beat us in terms of quality,” Dangote said.

Last December, Dangote, Africa’s leading industrialist, commenced operations at his $20bn facility sited in Lagos with 350,000 barrels a day.

The refinery, which was initially bogged by regulatory battles, hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.

“This is a good development”, Chima Echefule (@Chimacoeche) tweeted in response to the news.

But eddiebrendan the mediaguy @eddiebrendan seems yet unconvinced as netizen queries, “What’s the impact on the current price of fuel? That’s what’s most important at this time”.

As E Dey H0T (@As_E_Dey_H0T), tweets: “Now, I can smile. It is not just the smile ooo BUT the price too must reduce”.

Jess (@jessxluuna) believes Dangote Refinery will be a game changer for Nigeria’s quest towards local refining of PMS – “sounds promising! if it really happens, it’ll be a game changer for Nigeria”.

Meanwhile, local refining of crude oil has been an age-long conversation in Nigeria.

For years, expressions have centered on:

1. Will Local Refinery of Fuel lead to lower price of PMS at the filling Station?

2. Without subsidy, will Dangote Refinery sell close to N600 or it will tilt towards N1,000?

3. Will Local Refinery owned by Govt do better than the ones by individuals even when the citizens seem to agree that government doesn’t know how to run business efficiently?

4. Will this be the end of fuel scarcity both real and artificial scarcity we’ve been having till date?

Well, time shall tell.

But, currently, NNPC Limited’s tankers are already facing Dangote Refinery to get fuel with the netizens hoping will not turn around to call Dangote a monopolist.

The buzz is everywhere and many are wondering why the naira is even being compared to the dollar since federal workers who initially earned the previous minimum wage of ₦30,000 are seemingly overjoyed.

But before you query further, look at today’s Nigeria, where the dollar plays an outsized role, affecting everything from the price of bread to rent. 

In 2014, Nigeria was Africa’s largest economy with a GDP of $568.5 billion. South Africa followed with $381.2 billion, Egypt with $321.6 billion, Algeria with $238.9 billion, and Angola with $145.7 billion. 

By 2023, Egypt rose to the top with $393.9 billion, South Africa maintained a close second with $377.7 billion, and Nigeria dropped to third with $374.9 billion. Algeria and Ethiopia followed with $244.7 billion and $159.7 billion, respectively. 

For 2024 estimates, South Africa’s economy became number one with $373.2 billion, Egypt at $347.6 billion, Algeria at $266.8 billion, Nigeria at $252.7 billion, and Ethiopia at $205.1 billion. This is according to data from StatiSense.

Also, the purchasing power of Nigeria’s minimum wage in terms of petrol (PMS) has seen a severe decline over the years. In 1999, a minimum wage of ₦3,000 could buy 150 litres of petrol. By 2000, an increased wage of ₦7,500 could purchase 341 litres. In 2011, with a wage of ₦18,000, workers could afford 277 litres. 

However, in 2019, despite a wage rise to ₦30,000, the purchasing capacity fell to 206 litres. In 2024, the new minimum wage of ₦70,000 only buys 93 litres of petrol, reflecting the huge impact of inflation and rising fuel prices on the real value of wages. What’s really happening?

The answer isn’t so simple. This new wage stacks up against the ever-rising cost of living, impacting businesses and the economy at large, and how Nigeria compares with other African countries.

There are complexities of wages and the never-ending issue of a better life in Nigeria, still, the dollar feels like gold. 

In the midst of all this, Aliko Dangote has halted his steel production plans following monopoly accusations from President Tinubu. We’ll get to that later. 

Striking a Balance: Navigating Nigeria’s Minimum Wage Debate for Economic Prosperity, Social Equity

Looking at Nigeria’s previous minimum wage, set at ₦30,000 per month, was established in 2019. At that time, the economy was facing low growth rates, high unemployment, and inflation, but not at a level as high as today. Inflation then was 11.40%, but today, it stands at 34.19%. 

The primary objective of the wage increase was to enhance the purchasing power of workers, reduce poverty, and stimulate economic activity, but things have gotten worse ever since.

The current agreement, according to the Nigeria Labour Congress (NLC), comprises a commitment to review the minimum wage every three years rather than every five years. 

This means the President will now adjust wages more frequently to keep up with inflation and economic conditions.

Cost of Living Analysis

To understand the impact of the new minimum wage, it’s essential to analyse the cost of essential goods and services before and after its implementation:

The price of foods such as rice, beans, and bread has greatly increased. For instance, as of July 18, 2024, a 50kg bag of high-quality rice costs ₦87,000 in Abuja, while it ranged between ₦78,000 to ₦85,000 in Lagos, Jos, Ilorin, Ibadan and Port Harcourt, among other states. 

This is a huge difference to earlier prices in 2019 where a 50kg bag of rice cost around ₦21,000. Even a loaf of bread is now as high as ₦2,000.

Rent prices have surged, particularly in urban areas. A one-bedroom apartment that rented for ₦200,000 annually in 2019 now ranges between about ₦500,000 to ₦1.5 million in Lagos State depending on the location.

Public transportation fares have doubled due to higher fuel costs. A bus ride that used to cost ₦100 now demands ₦300 and above.

The cost of healthcare services and medications has also risen sharply, making it more challenging for low-income earners to afford necessary treatments.

These increases show a big gap between wage growth and the rising cost of living, leading us to wonder about the real value of the new minimum wage.

Purchasing Power Comparison

Adjusting for inflation and the devaluation of the naira, the real value of the new minimum wage reveals its purchasing power. 

In 2011, the minimum wage was ₦18,000, equivalent to $117. By 2019, the wage had increased to ₦30,000, but due to currency devaluation, it was worth $98. Currently, the ₦70,000 wage, using the Central Bank of Nigeria’s exchange rate of ₦1,584 per US dollar, amounts to approximately $44.2. This figure is lower than expected, particularly considering the high cost of living in Nigeria.

For context, the price of a tuber of yam in the South East ranges from ₦7,000 to ₦12,000, depending on its size. The devaluation of the naira has unfortunately diminished the purchasing power of the new minimum wage. 

An analysis of the Nigeria Foreign Exchange Market (NFEM) reveals a decline in the naira’s value, making it difficult for workers to afford basic necessities despite the increased minimum wage.

Seeking individuals’ views, Lade, a single mother of two, works as a cleaner in Lagos. Despite the wage increase, she finds it hard to cover basic expenses. “The rent alone takes up more than half of my salary. After paying for food and school fees, there’s nothing left for emergencies. The new wage will help, but just a little, because everything has tripled currently.”

Emeka, a factory worker also says the new wage helps a bit, “but with the cost of everything going up, it feels like I’m running in place. It’s hard to save or plan for the future.”

Despite the wage hike, the price hike is unchanging. 

Nigeria’s Inflation Rate Up 34.19 % Amid Rising Cost of Living

International Comparison

Comparing Nigeria’s new minimum wage with those of similar countries gives us more insights. For instance, in South Africa, the minimum wage is about $248 per month, adjusted for purchasing power parity. In Ivory Coast, the wage is $125, in Togo it is $87, in Benin Republic, it stands at $86, Senegal at $75, Kenya at $116, Cameroon at $70, Morocco at $286, and in Seychelles, the highest, at $464.

Can you see that the purchasing power in Nigeria remains insufficient? 

For businesses, higher wages mean increased operating costs, which could lead to higher prices for goods and services. This, in turn, might contribute to inflationary pressures.

From an employment perspective, some businesses may struggle to absorb the increased labour costs, potentially leading to layoffs or reduced hiring. 

On the positive side, higher wages could boost consumer spending, driving economic growth and potentially creating more jobs in the long run.

But without corresponding productivity gains and economic reforms, the benefits may be short-lived.

For How Long Shall This Continue?

Robert Nesta Marley, the Jamaican social-political prophet, in his evergreen album “Redemption Song” released in 1980, must have thought about the prevailing ills of his time when he released a strong lyric that goes, “How long shall we kill our prophets while we stand aside and look?” With the accuracy of a Jewish prophet, Marley advanced the cause for redemption as indicated by the song’s title.

In the context of religion, a prophet sees ahead, predicts, and prescribes solutions. In business and entrepreneurial parlance, we believe “prophets” find solutions to pending situations, create opportunities when there are none, and subsequently ameliorate challenges for the people. 

Africa and Nigeria have been blessed with many such individuals, and it would be right to assert that Alhaji Aliko Dangote falls within this class by virtue of his investments and entrepreneurial wizardry.

The controversies that have surrounded the Dangote refinery, from scepticism and impossibilities envisioned by some armchair theorists and self-acclaimed social analysts, reflect this. 

Dubbed the eighth wonder of the world, with a production capacity of 650,000 barrels per day, the Dangote Refinery should prompt every serious person of African descent to interrogate what exactly our problems are and what we want as a people, despite campaigns of calumny from certain quarters.

Before the Dangote Refinery began operations, the Dangote Group was the highest employer of labour in Nigeria outside the federal government. It is a conglomerate with diverse interests in sectors such as cement, petrochemicals, sugar, flour, and salt production. 

The company employs over 50,000 workers across its different subsidiaries, and this is expected to increase with the Dangote Refinery, the largest in sub-Saharan Africa. 

According to information released six days ago, the $19 billion Dangote Refinery, reputed to be the largest in Africa and Europe, employs over 3,000 people. The fertilizer plant alone employs close to 1,500 directly and another 5,000 indirectly. 

While the politics surrounding the Dangote Refinery remain unclear, what is crystal clear is that it has generated employment opportunities and put food on the table for many, despite Nigeria’s hostile operating environment.

In the same vein, it is my firm belief that the proposed steel production, which was called off on the grounds of monopolising every aspect of the economy, after expressing readiness about a month ago, calls for serious soul-searching questions. 

There is no doubt that steel plays a vital role in the modern world. It is one of the most important materials for building and infrastructure, enabling a wide range of manufacturing activities and creating opportunities for innovative solutions in other sectors. It is also indispensable in research and development projects worldwide. 

Furthermore, a functional steel industry will serve as the backbone of Nigeria’s industrialisation if all the necessary parameters are put in place. The benefits of having a functional steel industry will translate to a functional country. 

The steel industry will contribute to all facets of the economy, including the important role it plays in economic development and growth, its multiplier effects in the development and sustenance of agriculture, healthcare, and virtually every other sector.

Dangote Halts Investment Plans in Nigeria’s Steel Industry

Are there records of remarkable breakthroughs in Nigeria’s steel industry yet? 

About eight months ago, the Federal Government of Nigeria allocated N4.45 billion to the moribund Ajaokuta Steel Company in the 2024 budget, seeking N35 billion from funding institutions to revive the light steel mill in the Ajaokuta Steel Plant, which has been dormant for over 42 years. 

It is significant to note that N4.45 billion for 2024 is higher than the N3.71 billion allocated to the company in 2023. However, juxtaposing the expenditure wasted by the federal government over the years with the trivial gains accrued from the industry, one could have envisioned that proposed steel production by Africa’s richest man would have brought succour or engineered a good start for private investors and entrepreneurs alike. But alas, the African billionaire has called off the initiative on the basis of being called a monopolist.

Much More than the Monopolist Claim

According to the Indian Economic Times, a monopoly market structure is characterised by a single seller selling a unique product in the market. 

In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. Factors like government licenses, ownership of resources, copyrights and patents, and high starting costs make an entity a single seller of goods. 

All these factors restrict the entry of other sellers into the market. Monopolies also possess some information that is not known to other sellers.

But the last time we checked, the government has not given anyone an exclusive right to venture into the steel industry. It seems to be like the Yoruba saying, “eni to ba la ya ko wa wo,” translated to English: “If you have the grit and expertise, you can venture.” 

Could it be that the constant frustration meted out by international oil companies and the supposed internal conspiracies experienced at the Dangote Refinery were covered up with something else?

Minus investment in the steel industry, plus the ₦70,000 new minimum wage, all you have is suffering and smiling.

Let’s say the monopoly justification adduced by Alhaji Dangote is something to go by. We are convinced that investment in the sector would have boosted employment opportunities for the teeming unemployed citizens in Nigeria. 

The question is, having witnessed the mass exodus of multinationals—up to the tune of 800 companies, with several others without clear records—are we supposed to have frustrated the good gesture of the entrepreneur? 

Like Microsoft, Apple, and Nvidia of this world, ours can start by providing a soft landing for the takeoff of conglomerates, not discouraging them in any way.

As a matter of fact, entrepreneurs in Nigeria are the real VIPs and should be treated as such. While we may be tempted to toe the line of the African billionaire on the basis of the monopoly alibi, we are sure that the birth of a steel industry would have at least paid more than the much-celebrated increase to N70,000 minimum wage. 

Whether the recipients of the minimum wage can lead a good life is still a long discussion, and we may need to wait and see how it pans out. 

If you can’t eat rice alone, the Iyaloja market already indicates that a big basket of tomatoes goes for ₦120,000. I will leave you with the prices of meat, fish, red oil, and a standard apartment in Nigeria. Then the question arises: how far can the minimum wage go?

Therefore, in line with the thought of Alhaji Aliko Dangote, we wish other daring African entrepreneurs who wish to venture into the steel industry the very best. 

Rounding off this piece, news just came in indicating Dangote’s interest in selling off the refinery, still on the basis of being dubbed a monopolist. We wait earnestly as events begin to unfold in the forthcoming days.

Dangote disclosed this during a press briefing at the refinery on Sunday. He attributed the reduction in NNPC’s stake to the corporation’s failure to pay the balance of their share, which was due last month in June.

He stated that while NNPC had promised to provide the funds, it has been unable to meet its obligations, thus reducing its stake in the $19 billion refinery to 7.2%.

“NNPC no longer owns a 20% stake in the Dangote refinery. They were supposed to pay their balance in June but have yet to fulfill the obligation. Now, they only own a 7.2% stake in the refinery,” Dangote said.

In March 2021, it was reported that NNPC planned to raise $2.76 billion in credit facilities to purchase a 20% stake in Dangote refinery. The NNPC Chief Operating Officer, Refining and Petrochemicals, Mr. Mustapha Yakubu, said this plan aimed to secure Nigeria’s place in the massive project, ensuring resource dependency. 

He added that this was part of the government’s strategy to collaborate with private oil companies to safeguard the country’s energy security while rehabilitating its own refineries.

Additionally, recent data sourced from NNPC Ltd’s newly released audited financial report for 2022 shows that the national oil company borrowed $1.3 billion to acquire the stake.

However, Dangote said the company has only paid enough to acquire a 7.2% stake in the refinery and has failed to fulfill its obligations due last month.

The Dangote Refinery is a massive oil project located in the Lekki Free Zone, Lagos, Nigeria, boasting a capacity of 650,000 barrels per day (BPD). Owned by the Dangote Group, it aims to become Africa’s largest oil refinery and the world’s biggest single-train facility.

The refinery is expected to generate 9,500 direct jobs and an additional 25,000 indirect jobs, providing a substantial economic boost to the region.

Once fully operational, the refinery will produce approximately 50 million litres of petrol and 15 million litres of diesel daily, equating to 10.4 million tonnes of petroleum products annually.

It will also yield 4.6 million tonnes of diesel and 4 million tonnes of jet fuel per year. Moreover, the facility includes a fertilizer plant that will utilize by-products from the refinery as raw materials, further enhancing its economic and environmental impact.