Undue Enrichment of Aliko Dangote at the Expense of Nigeria
By Edward Ejike Okpa
For disclosure, I offer the following comments based on my understanding of public finance, economic development, public policy, currency stabilization, anti-trust and monopoly.
I have no qualms how rich Aliko Dangote is or gets – he will never feed me nor me seeking to be fed. Glad to see a black person join ranks of rich folks in the world but let’s look at how Aliko Dangote has hijacked Nigeria political figures to enrich his enterprises.
Here we go:-
According to a Vanguard 2/27/21 article written by Udeme Akpan, Nigeria CBN Gov. Emeliefe during a recent visit to Dangote Refinery under construction, made the following announcements:
(1) – Oil will be sold to Dangote Refinery in Naira.
(2) – Federal government to infuse N100B as intervention measures to Dangote.
(3) Selling Dangote Refinery oil in Naira will stabilize the Naira and boost the economy.
Given Items 1&2, my questions-
(a) – At what price per barrel?
(b) – Did NASS vote on the intervention measures or was it a Buhari fiat?
(c) – How in demonstrated numbers will Naira stabilize and economy grow?
Ever since Aliko Dangote debut a closer look at his various business interests will show he has enjoyed undue enrichment at the expense of Nigeria.
UNDUE ENRICHMENT as a result of monopoly and access to political figures who roll out carpets for him. Hardly any stocks listed on Nigeria Stock Exchange associated with Aliko Dangote has a value equivalent of a dollar. What does that say for the richest Nigerian, when NBL stocks trader higher?
Granting Aliko Dangote monopoly when he should be competing is nothing short of anti-trust. There are other Nigerians’ owned/run companies that are left to fizzle while Dangote is raking in MONEY which often the terms and conditions are not disclosed. Sweet-heart deals is not mark of fairness or in the spirit of competition. If Aliko Dangote is the business guru Nigerians are mis/led to believe, why not he reject the money and raise them from the capital market? He can’t because his books may suck.
No doubt, there is need to secure certain industries but should CBN be making direct loans or grants?
In my understanding of role of Central Banks – “lender of last resort”, such lending is thru financial institutions that turn around and lend to consumers.
I wonder if Innoson Motors will receive such sweet heart deal as Aliko Dangote because Nigerians import cars, as such importation is a charge on foreign reserve.
The situation in Nigeria is made worse because organizations like Nigeria Bankers Association, Nigeria Bar Association and all other public interest groups that should sue for undue enrichment end up joining in allowing such to happen. Nigeria is run on “Petty Cash” operation as the President and 36 Governors dole out money to their favored clans.
Until Nigerians intervene thru legislative mandates or sue for accountability and probity, the likes of Aliko Dangote will continue to live and look large at the expense of Nigerians.
Time to clip his wings and let Nigerians see him fly because he knows how.
I doubt it.
EE OKPA a Global Affairs Analyst writes from USA