Aliko Dangote, President of Dangote Group, revealed that the company’s cement business contributes 52% of its revenue to the government through various taxes. Speaking at a press conference held at Dangote Refinery, he explained that for every N1 generated, the government collects 52 kobo, leaving shareholders with less than what the government takes.
Dangote further noted that shareholders face an additional 10% withholding tax on dividends, reducing their final payout to 90% of the declared dividends. He described this as a mutually beneficial arrangement, emphasizing the significant tax contributions made by the company.
Addressing accusations of monopolistic practices, Dangote argued that without the establishment of their cement business, the government would have missed out on substantial tax revenue, estimated between N600 billion and N700 billion. “We are not a monopoly,” he stated, highlighting that the company’s operations, including exports and local capacity expansion, have created a win-win scenario by generating significant tax income for the government.
In addition, Dangote reflected on the high risks associated with the group’s 650,000 barrels per day refinery project. He shared that industry experts and government officials, both local and international, had cautioned that such large-scale ventures are typically undertaken by sovereign nations. Despite these warnings and numerous challenges, Dangote underscored the company’s unwavering commitment to Nigeria and the African continent.
