Aliko Dangote, President of the Dangote Group, has advocated for policies that protect and nurture domestic industries, transforming them into indigenous champions capable of generating jobs and fostering prosperity amid current global economic challenges.
Speaking at the Nigeria Manufacturers’ Summit in Abuja, Dangote emphasized Nigeria’s potential for prosperity and highlighted the crucial role of government policy in achieving this.
Dangote pointed out that industrial entities require time and a conducive environment to mature and become competitive. He criticized the trend since the mid-1980s where non-industrialized countries have been discouraged from protecting their nascent industries, exposing them to unfair competition from more established global players. He cited several examples of government interventions in other countries that have protected their industries, such as the US blocking sales to foreign companies and imposing tariffs.
Dangote referred to Asia’s success in industrialization through active government support and leveraging this success to attract foreign direct investment into Free Trade Zones. He stressed that government protection should not only include short-term regulatory mechanisms like tax holidays but also a long-term policy framework ensuring industries are regarded as national assets. He highlighted that such policies would have preserved Nigeria’s textile, tyre, and refining industries, leading to sustained economic benefits.
Countering the notion that protecting domestic industries reduces competitiveness, Dangote argued that countries like China, Korea, and India have thrived by protecting their industries. He cited Nigeria’s transformation in cement production, where strategic government policies and support have made the country Africa’s largest cement producer and exporter, and one of the top 10 globally in competitiveness. He noted that in 2023, Dangote Cement alone contributed more tax revenue to the government than the entire banking sector.
Dangote refuted claims that protecting industries would lead to monopolies, asserting that successful local investors attract foreign investors. He expressed confidence that supportive government policies would encourage investors to collaborate with the government in addressing challenges such as infrastructure deficits and macro-economic issues.
Reiterating Nigeria’s potential to develop a globally competitive manufacturing sector, Dangote called for a rethinking of the country’s industrialization policy, learning from leading countries in the West and the East who actively protect their domestic industries.
