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Halima Dangote: Family-Owned Businesses driving global economic success

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Family-owned businesses (FOBs) can continue to drive economic success, create value for shareholders, and positively impact their communities worldwide by staying true to their core values and adopting strategic practices that prioritise long-term growth, efficiency, and resilience. This was part of the submission made by Halima Aliko-Dangote, Group Executive Director of Dangote Industries Limited, during the Forbes Global CEO Conference in Bangkok, Thailand.

Halima, who is also the Executive Director, Family Office, spoke at the panel session on Family Business: Looking at the Next Frontier, opined that family-owned businesses have demonstrated exceptional resilience, navigating challenges and thriving over multiple decades.  Other speakers include Carolyn Choo, Managing Director and CEO of Worldwide Hotels; Rose Damen, Managing Director of Damen Yachting, third-generation family shareholder of Damen Shipyards Group; and Caroline Link, Co-Chairman of B.GRIMM Pharma, President of B. Grimm Joint Venture, and Board Member of B. Grimm Power.

She stated that  success in family-owned businesses starts with shared values, goals, governance policies and alignment adding that reputation is part of Family Capital. According to her, governance structure, adherence to core values, customer satisfaction, optimization of shareholder value, meritocracy, integrity, leadership, brand equity, diversification/growth, philanthropy and preserving generational wealth play key roles to the success of our businesses.

She opined that Dangote Group’s governance policies do not allow board and management to operate in silos as each business unit have at least three independent directors that will give a holistic view.

Speaking on other factors of success for Dangote Group, Halima emphasized, “We family-owned businesses have to stick to our tradition of asset rich-cash moderate or as my father will correct me, asset rich-cash poor. We as Dangote perpetuate a profitable business with strong values and strong governance structure. We make money while building our nation by contributing heavily to the global economy, creating massive jobs, thinking of our great grand kids and contributing  excessively to humanity.”

Highlighting the significant contribution of FOBs to the global economy, Halima noted that studies by Mckinsey showed  that they account for more than 70% of global GDP, generate annual turnovers of between $60 trillion and $70 trillion, and provide around 60% of global employment. She stressed the crucial role these businesses play in creating jobs, sustaining communities, and driving development in sectors such as manufacturing, education, healthcare, and infrastructure across the world.

“Family-owned businesses (FOBs) have proven to be resilient, weathering challenges and thriving across multiple decades. Despite facing external pressures, many FOBs not only survive but also grow, contributing significantly to the global economy in ways that are often underestimated or overlooked,” she said.

She also pointed out that family-owned businesses often employ two key approaches in preparing the next generation for leadership roles: internal and external capacity building. Regarding internal capacity building, Halima explained that many families create internship programmes for young family members interested in taking over the business or assuming leadership positions.

In Nigeria, we  train the next generation so they can grow organically  to  leadership roles in family businesses. My dad’s approach is for you to start from ground up knowing you will get to leadership role if you work hard and do your job right. These experiences  make it easier for you to learn the ropes and be prepared for leadership role in the future,” she said.

On external capacity building, Halima discussed the practice of sending younger generations to work in non-family businesses. This approach enables them to acquire new skills, learn better processes, and gain diverse perspectives that can benefit the family business in the long run adding that she started her career as an Analyst at KPMG before joining Dangote Industries Limited.

The approach she explained “removes the familiarity tag as the young generation got employed as other people and supervised to monitor their performance. This has been a common avenue business families have chosen to pursue for many years, having their next generation spend three to five years working outside the family business before eventually joining with a new set of skills and business knowledge.”

Addressing the challenges of succession planning, Halima emphasised the importance of involving the younger generation in the business early on. She suggested that this creates a space for open communication, where the next generation can share their thoughts, ideas, and aspirations, while the senior generation provides critical information to help the next leaders make informed decisions.

She stressed the need for a balance between tradition and innovation in family-owned businesses. While tradition provides continuity and stability, she noted that innovation is vital to staying relevant and competitive in the modern marketplace.

“Successful family businesses recognise the need to adapt to changing consumer preferences, technological advancements, and market trends. Family businesses often have a wealth of experience and deep-rooted traditions. They can also benefit from external expertise and fresh perspectives,” she concluded.

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Sultan Declares Saturday as First Day of Ramadan in Nigeria

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The Sultan of Sokoto, Alhaji Sa’ad Abubakar III, has declared Saturday, February 1, 2025, as the first day of Ramadan in Nigeria.

The announcement followed the sighting of the new crescent in various parts of the country, which was verified by the national and state moon sighting committees. Speaking at his palace in Sokoto, the Sultan urged Muslims to begin the Ramadan fast in accordance with Islamic teachings.

He called on the Muslim community to use the holy month for devotion, prayers, and supplications for Nigeria’s peace and progress. He also emphasized the importance of religious tolerance, unity, and extending support to the less privileged during Ramadan.

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NORP Commends Federal Lawmaker for Supporting Journalists During Ramadan

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The Northern Online Reporters and Publishers (NORP), Kano State Chapter, has expressed gratitude to Hon. Kabiru Alhassan Rurum, the lawmaker representing Rano, Kibiya, and Bunkure Federal Constituency, for his generous donation of 25kg bags of rice to each of its members as a Ramadan gift.

In a statement signed by the Interim Chairman and national treasurer  of NORP, Comrade Abbas Yusha’u Yusuf, the association described the gesture as a reflection of Hon. Rurum’s commitment to the welfare of journalists, particularly during the holy month of Ramadan.

“This act of kindness demonstrates Hon. Rurum’s dedication to supporting journalists and media practitioners, especially during this sacred month of fasting and reflection. His generosity will go a long way in easing the burden on our members and reinforcing the spirit of community and solidarity,” the statement read.

NORP further reiterated its dedication to ethical journalism and objective reporting, acknowledging leaders like Hon. Rurum who recognize and support the role of the media in society.

“We remain committed to upholding the values of ethical journalism and objective reporting, and we appreciate leaders like Hon. Rurum who recognize the significance of the media in society,” Yusuf stated.

The association extended prayers for the lawmaker, asking Almighty Allah to reward him abundantly for his support.

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Just In: Tinubu signs N54.9trn 2025 budget into law

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President Bola Tinubu has signed the N54.99 trillion 2025 appropriation bill into law, marking a 99.96 percent increase from the 2024 budget of N27.5 trillion.

The bill was approved by the national assembly on February 13, after revisions to Tinubu’s initial budget proposal of N49.7 trillion.

The key breakdown of the 2025 budget includes a total expenditure of N54.99 trillion, statutory transfers of N3.65 trillion, and a recurrent (non-debt) expenditure of N13.64 trillion.

Other components are capital expenditure: (N23.96 trillion), debt servicing (N14.32 trillion) and a deficit-to-gross domestic product (GDP) ratio of 1.52 percent.

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