Nigerians are taking to social media to say how they feel about the show-stopping raid by agents of the Economic and Financial Crimes Commission, EFCC on the Ikoyi headquarters of Dangote Industries, the country’s largest conglomerate.
The raid by as many as 50 detectives from the EFCC on the headquarters of the group took place on Thursday afternoon and it has since been reported that following the raid, officials of Dangote group have been invited for further investigations at the EFCC head office in Abuja.
Ndubuisi Ekekwe, a professor said in a LinkedIn post that he saw no reason for the raid, explaining: “If you have $5billion to invest in Nigeria and you have money to rent my brain, my advisory package will include getting some major concessions from the government for you. I have called that conglomerate tax and it is global (Amazon HQ2 got $billions of waivers from US cities, etc).
“Dangote’s problem is that he is alone doing production things in Nigeria, and that is why we have the jealousy from many who do not understand how markets work. There is no businessman or woman with $10bn to invest that will not ask for special treatment. Not doing so is stupidity.”
But another commentator who wondered why the EFCC raid was so show-stopping, however, said “we shouldn’t put it all down to envy and jealousy. Are we not worried that so much of our well-being seems to ride on one group of companies and on the man who seems to tightly control these companies?”
According to him, “Are we not concerned that a conglomerate of this size and value is caught up in the opaque world of CBN’s FX management and trading that surely we all knew would become a national scandal one day? Isn’t it even more alarming to read that the EFCC conducted its “raid” on the suspicion that Dangote Industries was involved in forex transactions not approved by PMB? How did PMB become the approving authority for CBN’s forex trades?”
He said “Prof. Ekekwe is correct about the extensive use of subsidies out there in the US (and the EU, by the way). Here’s the difference, Prof. Over there, subsidies are legislated and transparently administered and the value for money they deliver can be tracked and measured in economic growth and jobs. When they are abused, the perpetrators are found and they pay the price. The facts are also aired in the press.”
According to yet another commentator, “Aliko Dangote is, in my opinion, one of most patriotic businessmen who has over the years invested his resources in this country. There are so many Nigerians who have kept their resources in portfolio investments and real estate in developed countries at the expense of Nigeria. P&G and others have left but Dangote Group and others are still here doing business. He should be celebrated for his doggedness and persistence in the midst of the decreasing index of the “ease of doing business” in our country.
“As it is done in other climes, if any of the companies within the Dangote Group has violated any of our laws, it should be sanctioned and fined. Microsoft, Meta, BP, and others had been fined by the US Government for infractions committed. Same should be applicable here.”
The online chatter goes on. One commentator said, “Let us stop and understand certain things. Aliko Dangote is rich, because he solves Nigeria’s problems. When a few years ago, Nigeria was spending more than 40% of all its forex earnings on cement, and this became a major problem, including clogging our ports with cement laden ships, Mr Dangote saw a big problem that needed to be solved, he plunged in, and in 10 years built a cement manufacturing capacity, bigger than what Lafarge/Blue circle (the elephant cement people) could not build in 50 years.
“Today, Nigeria exports cement and meets all its local needs. That was problem solved. Yes. He got tax holidays and duty waivers and outright Government support, so what is wrong with that? He was helping Government solve a major problem. He was not the only one given that opportunity.
“When he saw that Nigeria was having a problem with importation of petroleum products, and we have come to exact place, we were in with Cement, importing products with over 40% of our Forex, he again plunged into solving another of Nigeria’s problems… by building one of the largest refinery in the world that will solve the problem ….what is wrong with giving him tax holidays and waivers, including priority allocation in FX when in fact, there is a possibility of earning Fx into the economy and saving forex from the current importation of petroleum products by mostly portfolio importers. Who remembers that only recently, Dangote took on the responsibility of doing the Oworonshoki/ Oshodi/ Airport road in Lagos …. Another problem-solving project for Nigeria… can anyone say that getting tax credits to do that road was a bad thing?
“Let’s be realistic, the issues of favoritism need to be seriously looked into. If anyone can prove he has committed a crime, he should be punished, until then, I will advise we wait for a thorough investigation and get away from the current sensationalism and the usual media trial.”
In another commentary, a former CBN chief said, “I have been reading these stories and scratching my head. In all this, no one has said what law has been broken.
“The CBN sells forex at a price it chose to fix itself. Because it fixed a price below the market, it created excess demand at its own window – a matter predicted by the price theory we all learnt in EC101.
“If the CBN decided to allocate forex to a company building a refinery which would help ease our forex crisis by eliminating petrol imports and generating forex from exports of refined products which law has been broken?”
A private equity analyst based in London says, “Nigeria, always teeming with lawless elites, is now backsliding into open state lawlessness. The instruments of state are being used to create lasting damage to a company and its reputation, without any allegation being made.
“Many want Aliko to fail and have apparently been incentivized to engender the failure. Let’s hope the banks, which have so much to lose if Aliko fails, will help Tinubu see the light. Aliko will only be collateral damage, with Nigeria’s economy in tatters, if Tinubu follows through on trying to squeeze Aliko. The banks will fail and none will ever set foot in Nigeria again. They need to pause and reconsider. And if it’s all just a pressure game, they need to realize that this is creating lasting damage.”
According to another commentator online, “In a nation earnestly seeking development, such as ours, it is imperative not to vilify our foremost industrialists and entrepreneurs, like the Dangotes of Nigeria, but rather, to cherish and support them. Even in instances where legal boundaries are breached, corrective measures or restitution should be pursued with decorum and respect.
“I recall a moment in 2004, during a lecture by Prof. Michael Porter in Boston on the competitiveness of nations, the focus was on identifying and leveraging areas of comparative advantage. I conveyed that our African leaders are not oblivious to development strategies but are hindered by corruption, nepotism, and bigotry. Prof. Porter emphasized that development isn’t solely the government’s responsibility; individuals, companies, or groups can catalyze transformative revolutions, citing the chaebols of South Korea.
“Witnessing the accomplishments of figures like Dangote prompts prayers for their success and a collective effort with peers like Adenuga, Otedola, Elumelu, BUA, Arthur Eze, etc., to initiate a development revolution in Nigeria. Given the historical context of Nigerian governments, doubts arise about their motivation and capability to drive development. The enormity of the task of uplifting a complex and mismanaged country requires unwavering commitment, a sentiment lacking since the 1960s. Is Nigeria genuinely prepared for development? Regrettably, the lingering absence of intent and zeal since the 1960s paints a disheartening picture.”
