Opinion

From Cementing Poverty To Oiling Its Wheels ?

Published

2 years ago

June 9, 2023

President Bola Ahmad Tinubu

Hamisu Hadejia,PhD

Endowed with vast deposits of limestones, ‘why would Nigeria be spending millions of dollars importing cement from abroad?’. This was the question that agitated the mind of Nigeria’s former president Olusegun Obasanjo (OBJ) in the early 2000s, leading to the former president summoning the major cement importer at the time, Mr Aliko Dangote, to brainstorm on sorting out the puzzle.

A policy seeking to incentivise cement importers to start local cement manufacture, known as the backward integration policy (BIP), was consequently introduced in 2002, following the private conversations between OBJ and Dangote.

As a sectoral industrial policy, the BIP made the grant of cement import licenses conditional on cement importers demonstrating concrete commitment to set up local cement producing factories. The strategy was to phase out, before completely banning, cement importation when local factories could produce enough to replace imports—a strategy known in economics as ‘import substitution policy’.

Among other incentives, the BIP ensured the sales of foreign exchange (dollars) to cement entrepreneurs especially Dangote at the official rate. For example, in a Reuters report, Dangote was said to have secured $161 million at the official exchange rate (of between 197 to 199 NGN per 1 USD) from the Central Bank of Nigeria (CBN) between March and May 2016. If Dangote were to (and he could without any accountability) re-sell this $161 million foreign exchange award in the currency black market, he would have made a profit of $100 million (£68 million) without lifting a finger. Thus, effectively, what this means is that just in a couple of months, the Nigerian government had subsidized Dangote to the tune of $100 million US dollars with taxpayers’ money, under the guise of supporting ‘strategic’ businesses.

Not only that, VAT/custom duty waivers on imported cement making equipment, credit guarantees, and a cumulative tax holidays of seven years were granted to Dangote Cement Companies (DCC).

Government’s support to infant firms, industries or entrepreneurs is not a new phenomenon in nations’ industrialization processes. Economists such as Alexandre Hamilton (1757-1804), Friedrich List (1789-1846), and contemporary ones like Ha-Joon Chang and Eric Reinert, have documented evidence confirming that these kinds of supports or state-business relations were instrumental to the industrialization of almost all industrialized nations of Europe, North America, and East Asia. However, the state-business relations in Nigeria especially in the cement industry deserves some critical reflections and re-evaluations for social welfare considerations.

THE PROS OF THE BIP

Within a little over a decade, the BIP succeeded in replacing cement imports with local production in Nigeria leading to the complete ban on importation of cement in 2012. Hence, government officials and industry players have never failed to flaunt the BIP policy as a national feat all patriotic Nigerians should celebrate. The bases for this conclusion are three: One, the policy has made Nigeria self-sufficient in cement production; two, it has created jobs opportunities; three, it saves Nigeria foreign exchange which, at the peak of import in 2008, was $304 million. While these ‘successes’ have been belaboured time and again, Nigerians have been deliberately left in the dark as to the costs of these achievements, which include, but are not limited to, the disproportionately lavish state incentives to cement investors as adumbrated above.

THE CONS OF THE BIP

The ban on cement imports and the dominance of a single player in Dangote gave rise to a monopoly, now duopoly, in the cement industry. Latching on to the opportunity, Dangote has used every trick in the book to initially eliminate competition (e.g., the case of Clestus Ibeto), charge exorbitant prices, and pay the state less than its due in taxes. Any evidence for these claims? Yes, there are plenty! For a start, it is a fact that the Nigerian cement consumers now buy a 50kg bag of cement at almost $10 (official rate). This is outrageously higher than what obtains in other markets including in many African countries, to some of which Dangote merely exports the clinkers he processes in Nigeria using Nigeria’s limestones for final processing and sales in those countries at prices lower than he sells in Nigeria! In fact, compared to its price in Nigeria, a 50kg bag of cement costs lower in China ($2.96), Malaysia ($2.3), India ($3.84), Kenya ($5.56), Zambia ($6.45), Egypt ($2.88), South Africa ($5.88), and Ghana ($7.0).

Also, some evidence suggests that the Nigerian state does not get actual value for the lavish incentives it splashes on Dangote. In the DCC’s 2016 annual report (p.139) for example, the company’s own independent auditors have pointed out that the company’s directors had made an ‘assumption’ about the pioneer statuses of different lines of productions at Ibese and Obajana factories. Without this ‘assumption’, the auditors concluded that:
“..an additional tax charge of N64.4 billion (2015: N40.0 billion) would have been incurred by the company if this assumption was not made in determining the tax liability.”

So, while the Nigerian state has subsidised Dangote generously, such efforts do not appear to have yielded benefits for both the state (which is not paid what is due to her in taxes) and Nigerian cement consumers (who buy cement at over 300% price differentials compared to other consumers elsewhere).

Moreover, with the cement manufacturing process being highly mechanised, the much-vaunted jobs created by the transformation of the industry is, in the final analysis, not worth the costs incurred from subsidization and the expensive cement prices Nigerians pay. For instance, the entire cement industry currently employs only around 30,000 workers directly, and most of these workers are truck drivers. Hence, it does not make any economic sense for Nigeria to, in a bid to keep a few thousand Nigerians in employment, sacrifice national housing needs/infrastructural development by forcing millions of Nigerians to pay extortionary cement prices. Dangote and other players in the industry cannot of course claim credit for the indirect jobs in the downstream retail segment of the industry because such jobs have been there and would still remain regardless of whether cement in produced locally or imported.

But how has Dangote managed to ‘cement’ his cake and eat it? The answer to this crucial question lies in understanding the nature of two domains of relations, that is: The Dangote-government relations as well as his public or civil society management relations.

Dangote-state relations took off in earnest towards the end of the OBJ first term, that is around the time the BIP was introduced. In his book, ‘The Accidental Public Servant’, Mallam Nasir El-Rufai, explained that Dangote came close to the OBJ government after the former president had fallen out with his powerful vice and major Peoples Democratic Party (PDP) financier at the time, Atiku Abubakar. Consequently, according to El-Rufai, “Obasanjo had to resort to raising money from other sources and that was how Aliko Dangote came into prominence in the government.”

A document from the US embassy in Nigeria leaked by Wikileaks would later reveal that “Dangote purportedly contributed 200 million naira (about $1.5 million at the time) to Obasanjo’s first term election campaign, and in 2003 at least another 1 billion naira (about USD 7.5millio) for the second term. Dangote is a known contributor to the PDP party.” The cable therefore concluded that, ‘it is no coincidence that many products on Nigeria’s import ban lists are items in which Dangote has major interests.’ Former President Yar’Adua of blessed memory saw through this kind of Dangote’s much-vaunted ‘entrepreneurial acumen’ and moved to free poor Nigerian cement consumers from the monopolistic exploitation before the cold hands of death cut him short. Ever since, the business continues with successive regimes securely holding the cement cash cow by the horns for Africa’s ‘entrepreneurial guru’ to milk in exchange for God knows what.

It is instructive to point out here that across the globe, investment in the cement industry takes between 20-30 years to deliver returns. However, in Dangote’s case, returns were delivered in less than a decade. To be clear, no one should begrudge Dangote his fundamental economic right to capital accumulation, however, such private economic right should also not be enjoyed at the social cost of denying Nigerians their fundamental right to housing through extortionary pricing of a product that their own state subsidizes, disproportionate to the social benefits for that matter.

Also, across the globe, profit margins in cement companies range between 30-40%, yet, in Nigeria it is up to 63%! This is because a couple of Nigerians gifted with ‘entrepreneurial acumen’ have the wherewithal to ‘lobby’ state officials to protect the market for them to charge whatever price they fancy. In a paper, Richard Itaman and Christina Wolf calculated that between 1999 and 2010, when cement import was severely restricted before its eventual ban, the Nigerian cement consumers, on average, lost N19.63 billion (that is, around $51.4 million in 2021 USD/Naira value) per year because of buying cement at exorbitant prices compared to the rest of the world. In fact, during the same period, Richard and Christina observed that cement prices had progressively increased by up to 300%.

In addition to ‘lobbying’ the political leadership, Dangote, as investigations by Michael Odijie and Anthony Onofua reveal, ensures the extraction of massive rents in the industry without any opposition from any quarters through his patron-clientelist relations with, and alleged infiltration of, trade/labour union and public/civil society organizations. The authors observed that Dangote generously ‘donate’ to the activities of these civil society groups with a view to ‘promoting the [BIP] policy as a major success.’. The authors stated that he installed his allies in the leadership of critical trade organizations such as the Manufacturers’ Association of Nigeria (MAN). Incessant ‘donations’ and yearly ‘gifts’ to such organizations as the National Association of Block Moulders of Nigeria and Trade Union Congress have also been attributed to silencing the voices of comrades who were hitherto vehement campaigners against extortionary cement pricing. Michael and Anthony have also observed trends in the co-optation of the media to popularise the narrative that local cement manufacturing is a collective national ‘success’.

THE WAY FORWARD

The new administration of President Bola Tinubu will do well by moving in the interest of impoverished Nigerians to address this cement issue decisively. Nigeria should not continue to protect a couple of producers at the expense of millions of Nigerian cement consumers. According to former minister of finance, Mrs Zainab Ahmed, ‘the Federal Government will require about $100 billion annually for the next 30 years to effectively tackle Nigeria’s infrastructure challenges.’ Also, the United Nations remarked that “Nigeria’s housing sector is in a complete crisis”. Undoubtedly, a critical part of addressing these challenges/crises is by making cement prices affordable to Nigerians. How can this be done? In my view, since the cement producers have been protected and subsidized for longer and larger than necessary, it is time for the cement market to be completely liberalized to allow for imports. This will facilitate competition which will beat prices down and ease the excruciating economic hardship of Nigerians. This is elementary economics. Even if local manufacturers who have been mollycoddled for over a decade fail to compete, so be it! The social benefits of suspending the long imports ban far outweigh the largely private benefits of sustaining it. The benefits of promoting indigenous private capital accumulation or keeping less than 30,000 largely truck-drivers’ jobs are not worth making millions of Nigerians homeless in their own fatherland. So, President Tinubu has a choice to make between appeasing a couple of capitalists/cronyists or salvaging millions of poor Nigerians who have no roof over their heads.
Dangote’s refinery: Like cement, like oil?
In celebrating the construction/commissioning of “world’s largest single-train petroleum refinery” without asking some critical questions, we, Nigerians, appear to have given in more to our sentiment than to our rationality. According to the Central Bank of Nigeria (CBN)’s governor, Mr Godwin Emefiele, who according to Dangote “moved mountains to ensure the success of [his refinery] project”, the apex bank ensured the availability of foreign exchange to Dangote to pay for equipment imported for his $19.5 billion refinery. What amounts of this scarce foreign exchange was sold to Dangote? What other monetary and fiscal incentives have been provided to the entrepreneur for the refinery project, and under what terms and conditions? Will all imports of refined oil and assorted products henceforth be banned for Dangote to enjoy another monopoly status in the oil industry, like he does in cement with all its concomitant consequences? Is the 20% Nigerian National Petroleum Corporation (NNPC)’s stakes in Dangote’s refinery a bait, decoy, or marriage of convenience to attract state patronage for profiteering business as usual?
Hamisu Hadejia (PhD)

Opinion

DSP Barau Jibril: A True Model of Progressive Politics

Published

6 hours ago

December 5, 2025

Nigerian Tracker

By Dr Usman Sarki Madobi

In an era when public trust in political leadership often fluctuates, the example set by Deputy Senate President Barau Jibril stands out as a refreshing demonstration of what progressive politics entails. His approach to governance and representation reflects a blend of humility, inclusiveness, and unwavering dedication to the public good showcasing the qualities that have earned him admiration across party lines and among citizens who yearn for purposeful representation. Today, DSP Barau Jibril became a treasure in the political arena of Kano state and the country at large. His politics, representation and leadership style has made him a distinguished politian worth of supporting for every elective position both at state and national levels.

At the heart of Senator Barau Jibril’s political philosophy is selfless service. His actions consistently demonstrate a commitment to the welfare of his constituents and the nation above personal or political gain. This people-first mindset is a cornerstone of progressive leadership, where decisions are guided by the desire to improve lives, uplift communities, and strengthen democratic institutions. His reputation for placing public interest before personal ambition has made him a dependable figure in the political landscape of Kano and Nigeria as a whole.

Another hallmark of his leadership is his refusal to discriminate between party members and the opposition. In an environment where political divides sometimes hinder national development, Senator Barau Jibril proves that collaboration is possible and paramount. His inclusive style ensures that all voices, regardless of political alignment are respected and considered in the pursuit of common goals. This rare quality fosters unity, reduces partisanship, and encourages a healthier democratic process that facilitate human and Societal development.

DSP Barau Jibril also exemplifies a dignified brand of politics that rejects violence, intimidation, and thuggery. He further promotes peaceful engagement and issue-based politics that helps in strengthening Nigeria’s democratic culture. His stance sends a clear message stressing that political success should be achieved through ideas, integrity, and service to the people not coercion or unrest. This commitment to civility contributes to a safer and more respectful political environment.

As a member of the Senate, his dedication to purposeful representation is evident in the seriousness with which he approaches legislative responsibilities. His purposeful representation made him to understand the needs of his constituents and work relentlessly to address them through meaningful legislative action. He also champion the formulation of policies that support national growth, equity, and stability. DSP Barau Jibril’s commitment in this regard underscores his credibility and effectiveness as a true representative that can transform Kano within a limited time if given the chance.

Perhaps one of the most profound aspects of his political character is his consistent respect for his party leadership, fellow members, and for humanity as a whole. True progressiveness is grounded in humility and empathy, and Senator Barau Jibril embodies these values through his conduct. His respect for others fosters cooperation, reduces conflict, and reinforces moral leadership qualities essential for building strong political institutions.

In conclusion, DSP Barau Jibril stands today as a true model of progressive politics, not only because of the offices he holds but because of the values he upholds. His selfless service, inclusive leadership, insistence on peaceful politics, commitment to meaningful representation, and deep respect for people form a powerful blueprint for the kind of leadership Nigeria needs. In him, many see a compelling example of how politics can indeed be a noble instrument for societal transformation.

Dr. Usman Sarki Madobi

Opinion

Insecurity: Was Badaru’s Exit a Voluntary Resignation or a Disguised Dismissal?

Published

3 days ago

December 2, 2025

Nigerian Tracker

_By Abba Dukawa_

Whether former Defence Minister Muhammad Badaru Abubakar resigned or was quietly removed by the President, one thing is certain: the Defence Ministry urgently needs an experienced and capable leader, especially amid today’s escalating security crises.

In the Tinubu administration, citing “health grounds” has become the political equivalent of “ dog ate homework” a polite euphemism for someone who has essentially been dismissed.

The truth is that Badaru had no business being Defence Minister in the first place. He brought no relevant experience to the role, and his temperament was ill‑suited to a nation facing a deepening security crisis. His appointment baffled anyone genuinely concerned about Nigeria’s stability and survival.

Before his exit, Badaru had already exposed himself as hopelessly confused and entirely unfit to lead the Defence Ministry – the institution responsible for overseeing Nigeria’s military.

In a BBC Hausa Service interview *before his unceremonial departure* from the cabinet, he revealed glaring deficiencies in his understanding of security challenges. He even made a shocking claim: that the Nigerian Air Force cannot eliminate terrorists hiding in forests because some hideouts are “too thick for bombs to penetrate.” He said:

_“In this kind of war, from time to time there will be relief; sometimes they will do something that will shock everyone on the ground, although I have heard some say their whereabouts are known and who they are. It is true that their whereabouts are known, but they are people you cannot attack, or they are in the forests where our bombs cannot reach them.”_

His remarks reveal not only a lack of resolve to confront insecurity but also a habit of offering puerile excuses to justify failure. Under his watch, Nigeria witnessed some of its bloodiest days, as terrorists and bandits unleashed violence on defenseless citizens across the Northeast, Northwest, and North‑Central regions. During this period, terrorists abducted and publicly executed Brigadier General Uba and three of his men in Borno State.

The truth is that Badaru was unfit to be Defence Minister long before his exit. His comments suggest a Nigeria permanently at the mercy of bandits, yet these criminals were allegedly never apprehended because their locations were “too remote” or “too difficult to attack.”

Thankfully, President Bola Tinubu has responded with a sweeping overhaul, replacing the Chief of Defence Staff and other service chiefs. He has now nominated General Christopher Gwabin Musa as Nigeria’s new Minister of Defence, citing his ability to “further strengthen Nigeria’s security architecture.”

General Musa, 58, is a highly decorated soldier who served as Chief of Defence Staff from 2023 to October 2025. His distinguished career includes appointments as Theatre Commander of Operation, Commander of the Nigerian Army Infantry Corps, and recipient of the Colin Powell Award for Soldiering in 2012. President Tinubu expressed confidence in General Musa’s leadership, describing him as a “tested professional capable of strengthening Nigeria’s security framework.

The former Defence Minister’s defeatist comments have sparked widespread criticism and demoralized troops on the frontline. The focus now shifts to President Tinubu’s administration and General Musa’s ability to restore confidence and security across the nation.

Challenges ahead for General Musa as defence minister, Strengthen intelligence gathering and surveillance systems to combat terrorism and banditry.

Improve barracks conditions and support for military personnel. Accelerate efforts to tackle Boko Haram, ISWAP, and other insurgent groups. Strengthen partnerships with global security agencies. Overhaul procurement processes to ensure transparency and efficiency.

Emphasizing innovation and technology will be crucial: advanced surveillance, AI‑driven threat analysis, and regional cooperation can make guerrilla warfare more predictable and attackers more accountable. With his extensive experience and proven track record, General Musa is well‑positioned to bring positive change to Nigeria’s defence sector.

Dukawa write it from Kano,can be reached at abbahydukawa@gmail.com

Opinion

When Former Commissioners, LG Chairmen Endorse DSP Barau

Published

3 days ago

December 2, 2025

Nigerian Tracker

By Abba Anwar

Politics, at whatever rate, is a matter of choice and process selection. When political actors, become impregnated with uncertainties, double speak/standard, coordinated lies and enduring loose ends, result will be goofed end.

Agreed, All Progressives Congress (APC) in Kano has been in disarray, immediately after the Supreme Court judgement of 2023 gubernatorial election result. But nothing or very little is being done to genuinely and honestly ameliorate the situation. The major crisis is that of disunity, mistrust and master-servant relationship between and among leaders and followers.

Another major dilemma, as far as party cohesion is concerned, particularly among leaders, is who becomes flagbearer of gubernatorial ticket come 2027, at the expense of all other elective positions. This, creates an ocean of gap between gubernatorial aspirants and their supporters. Genuine or fake supporters.

From the Supreme Court judgement of 2023 gubernatorial election result, to date, almost all the aspirants, including the then flagbearers, Gawuna – Garo ticket, came to know, who their real and genuine people, within the party, are. From that time to date, individual choices are examined and partitioned according to their political needs and engagement.

Switching over across political preferences, overtly or covertly, are fast manifesting. Loyalty, both divided and unwavering, are taking more shapes and directions. This is also a fact, attached to party leaders, elders and all other stakeholders. From ward level to local government level up to state level.

Looking at the political space, within the context of APC in Kano, we have gubernatorial aspirants in the persons of the current Deputy Senate President, Distinguished Senator Barau I Jibrin, CFR, the 2023 gubernatorial candidate, His Excellency Nasiru Yusuf Gawuna and his running mate, His Excellency Murtala Sule Garo, AA Zaura and others who are being lured in a deceitful manner, to join the race.

It appears to many recently that, the space is becoming clearer and gloomy to some. As 2027 is fast approaching, many things started evolving from within. While leaders and stakeholders are using the situation to cash out, few others see more opportunities for enduring political choice. Created by the current situation and time.

It is from the standpoint of this scenario, enduring political choice, that former Commissioners and former local governments Chairmen, decided to take a queue towards the direction of DSP Barau. Though immediately after the Commissioners visit to the DSP, and after DSP’s Facebook handle revealed that, the former Commissioners were at his office for a solidarity visit, one of the former Commissioners, Mutari Ishaq Yakasai, was on air blaming that disclosure as misleading and concocted lie.

Explaining further that, they were at DSP’s office to thank him for appointing some of their members, former Commissioners, to position in his office. While he (Barau) also facilitated the appointment of some of them to other positions.

Before Yakasai came on air dismissing Barau’s Facebook post, there were stories everywhere, that one of those who visited Barau in his office, amongst the former Commissioners, rejected DSP’s Facebook post, that they were there for a solidarity visit, as 2027 was fast approaching. But all the stories did not reveal the identity of the very person, who rejected DSP’s revelation. Then came Yakasai’s disclosure.

Just few hours after that, another former Commissioner who was also there during the visit, Kabiru Ado Lakwaya, went to the air and was carried in many stories, that, they were all there and paid a solidarity visit to the DSP. Explaining further that, they all agreed to support him for his 2027 gubernatorial ambition. When Lakwaya revealed that, there were arguments, from all ends. Some dismissing his claim as misleading and unbecoming of a man of his caliber.

After him, another former Commissioner, Musa Iliasu Kwankwaso, came on air supporting Lakwaya’s submission, in a very clever way. But a good listener, could deduce the main substance of his narrative. That, everyone has the right to support anybody of his choice. Arguing that, it was only a political choice, that all are entitled to.

What gave clearer perspective was a video clip that came from DSP Barau’s media unit, presenting the visit of the former Commissioners, live and direct. In that clip, some of the former Commissioners, whose remarks were shown, were all clear and categorical that, they were at DSP’s office to put their weight behind him. Adding that, part of their appreciation, for his intervention in the survival and development of the party, APC, was to tell him that, they would support him in all his political ambitions.

That clip put a stop to all the debates about what took the former Commissioners to the Deputy Senate President. Nothing was also heard again from either Yakasai or any other person.

Another similar visit was that of the former local governments Chairmen. Who also paid a visit to the DSP. Which the Senator in his own Facebook handle, disclosed that the former Chairmen were at his office to pay him a solidarity visit, towards 2027 elect.

In their own case also, after the visit, there were hues and cries that some of them alleged to have denied that they were there for a solidarity visit. But to the chagrin of all, unlike former Commissioners, none of the former local government Chairmen came to public and denounce what the DSP said on his Facebook handle. That they, were there to put their weight behind him.

The way I see it, is this, that, some people hide behind some teleguided wishes, acting behind the script of self – serving choice, leaving behind outer-wishes and engagement. While Kano APC is still intact, from the periphery , so many important stakeholders, understand why they should roam about and fix themselves into, what they think is better for them.

But the thing is, while unity is paramount and necessary for the party, sincerity of purpose and honest relationship, are prerequisite for victory come 2027. Among the aspirants we have there are very few of them, whom I can vouch that they are not in the race as do or die affair. Yes they have clean mind for it. And they understand its chemistry, opportunities and challenges. So working hand in hand with them, is not only deserving, but necessary.

Agreed, former Commissioners and former local governments Chairmen, are entitle to their political choice, they have a lot to offer in reconciling all parts within the larger body of the party. So also all other former this or former that, who held positions during the reign of the former Governor, Abdullahi Umar Ganduje. What we all need is sincerity of purpose, transparent political engagement and unscathed political choice.

While former Commissioners and former local governments Chairmen are probably shifting ground, I want DSP Barau to have it at the back of his mind that, he shouldn’t expect them all to support him at this stage. Some could be waiting for the natural process to take its cause. Not knowing that they are part of the natural process. But at whatever length, former this or former that, have every right to take their political direction, at their own pace, we should all know that, the overall aim is the victory of the party during polls.

Unity of the party is necessary at any cost. As integrity and honesty are necessary from the part of our leaders, followers should know that any tragedy in future, if care is not taken, will be harsher on them, as mere subjects. Take it or leave it. Unity is important to the party, as air is important to life.

Anwar writes from Kano
Tuesday, 2nd December, 2025