Connect with us

Opinion

From Cementing Poverty To Oiling Its Wheels ?

Published

on

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.

Advert

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

Allocations Triple, Yet Hardship Deepens Across Nigeria

Published

on

 

Despite a dramatic increase in federal allocations to states and local governments in recent years, millions of Nigerians continue to grapple with worsening poverty, inflation and a declining standard of living.

Across markets, offices, motor parks and homes, many citizens say the rising government revenues have done little to improve their daily realities. While states now receive significantly higher allocations through the Federation Account Allocation Committee (FAAC), families are struggling to afford food, transportation, housing and healthcare.

The growing concern has raised questions about how public funds are being managed and whether the benefits of economic reforms are reaching ordinary Nigerians.

The Rise In FAAC Allocations

Over the years, allocations from the Federation Account have steadily increased. In May 2022, FAAC shared N680.78 billion among the three tiers of government, representing a 6.94 per cent increase over the previous month. By July 2022, the amount had risen to N954.1 billion, while N990.19 billion was shared in December 2022.

The trend continued after the removal of fuel subsidy and the floating of the naira in May 2023. According to available data, the 36 states collectively received N3.35 trillion in 2022. By 2025, that figure had increased to N8.19 trillion, nearly tripling within three years.

Several states recorded substantial increases:

– Kano State: N99.31 billion in 2022 to N279.69 billion in 2025-

– Lagos State: N161.29 billion to N531.51 billion

– Taraba State: N51.74 billion to N157.56 billion

– Zamfara State: N56.62 billion to N167.20 billion

– Kogi State: N60.78 billion to N176.24 billion

– Akwa Ibom State: N314.18 billion to N497.98 billion

In March 2026 alone, FAAC distributed N2.04 trillion among the federal, state and local governments, reflecting a further increase in government revenue.

Analysts attribute the growth to tax reforms, improved revenue collection by agencies such as the Federal Inland Revenue Service (FIRS), higher crude oil earnings and policy changes directing more revenue into the Federation Account.

A Different Reality for Nigerians

While government revenues continue to rise, many Nigerians say their living conditions are moving in the opposite direction.

In Kano, civil servant Musa Abdullahi says his monthly salary can no longer sustain his family.

“Food prices have doubled. We hear that allocations are increasing, but we are not seeing the impact in our daily lives,” he said.

Advert

For traders, the story is much the same. Zainab Sani, a petty trader, said customers now buy less because household incomes have been stretched beyond their limits.

In Lagos, many families have been forced to make difficult adjustments. Dayo Oluwa, a resident, explained that items such as meat and fish have become luxury goods in many homes.

“Before, N2,000 could cook a decent pot of stew. Today, even N5,000 may not be enough,” she said.

Workers say transportation costs have also become unbearable. Some civil servants now limit their movement or seek additional jobs just to meet their basic needs.

In Kogi State, several workers have reportedly taken up commercial transportation, farming and small-scale businesses to supplement their incomes. Similar stories have emerged from Taraba, Zamfara and Akwa Ibom states, where residents describe an economy that continues to squeeze the average citizen.

Poverty Amid Rising Revenue

The contradiction between increasing government revenue and growing hardship has become one of Nigeria’s most pressing economic concerns.

According to the World Bank, about 140 million Nigerians were living in poverty by 2025, representing approximately 63 per cent of the population. Earlier reports by the National Bureau of Statistics also showed that millions of Nigerians lacked adequate access to food, healthcare and decent housing.

Economic experts argue that while subsidy removal boosted government earnings, inflation and currency depreciation have significantly weakened the purchasing power of citizens.

As prices continue to rise, salary increases and government interventions have struggled to keep pace with the cost of living.

The Accountability Question

The increase in allocations has also renewed calls for transparency and accountability.

Experts insist that the issue is no longer about whether governments have enough money, but whether those resources are being effectively utilised.

Development economists have repeatedly argued that increased revenue should result in better roads, improved healthcare services, stronger educational systems, job creation and targeted support for vulnerable populations.

Civil society groups have also urged citizens to take a greater interest in how public funds are spent. They argue that taxpayers have a right to know how government revenues are allocated and utilised.

The editorial position expressed by several policy analysts is clear: rising allocations should not merely exist as figures on paper; they should translate into measurable improvements in people’s lives.

Beyond the Numbers

The growing FAAC allocations represent a positive development for Nigeria’s public finances. They demonstrate that revenue generation has improved and that the country is gradually diversifying beyond its traditional dependence on oil earnings.

However, for millions of Nigerians struggling to afford daily necessities, the true measure of success is not how much money enters government accounts, but how effectively those funds improve the quality of life of citizens.

As governments continue to receive larger allocations, expectations will continue to rise. Nigerians increasingly want evidence that public resources are being invested in meaningful development, economic opportunities and social welfare.

Until the benefits of rising revenues are reflected in households, communities and businesses across the country, many citizens will continue to ask the same question: if government allocations are increasing, why is life becoming more difficult?

Written By: Mfe Mesuur Perpetual (Abuja),
200 level student of Development and strategic communication, University of Abuja.

Continue Reading

Opinion

What Saheeba Taught Me About Waiting for Love

Published

on

 

By Auwal Sani

Stories have a curious way of finding the places we pretend no longer exist. A few nights ago, I settled in to watch Saheeba, the ongoing Hausa mini series that has quietly earned a place in the hearts of many viewers. I expected to follow the lives of its characters. Instead, somewhere between the pauses, the longing, and the things left unsaid, I found myself confronting a story I have been carrying since 2018. By the time the episode ended, I was no longer thinking about the people on my screen. I was thinking about the quiet spaces within me.

I have always loved love stories. Not because they always end happily, as many of them do not, but because they reveal something profound about the human heart. It is perhaps the only part of us that refuses to become entirely logical. It believes after disappointment, hopes after silence, and waits even when waiting appears unreasonable. Love stories remind us that the heart possesses a resilience that the mind often struggles to understand.

There is a kind of loneliness that rarely announces itself. It is not the loneliness of being surrounded by no one. Rather, it is the loneliness of having family, friends, meaningful work, and personal achievements, yet still sensing that one important space remains unoccupied. It quietly accompanies you to weddings, birthdays, and ordinary evenings. It reminds you that some places within us cannot be filled by ambition, success, or the passage of time.

That has been my reality since 2018.

People often say that time heals all wounds. I have come to believe otherwise. Time, by itself, does not heal. It simply teaches us how to carry what has not healed. Over the years, I have questioned myself more than I have questioned fate. Perhaps my expectations of love are unrealistic. Perhaps I desire too much in a generation that seems increasingly comfortable with temporary connections and convenient relationships. Or perhaps I simply long for a kind of love that still believes commitment is worth choosing every single day.

Advert

What I know with certainty is that love has always been my greatest vulnerability. I have never learned the mathematics of guarded affection. I do not know how to give ten percent when my heart insists on giving everything. It has always seemed ironic to me that we encourage people to pursue their dreams without reservation, yet advise them to ration kindness, vulnerability, and love. More than once, I have discovered that not every heart knows what to do with genuine affection. Some admire it, some misunderstand it, and others receive it without ever intending to give anything in return.

Perhaps that is why love remains such a mystery. We write poems about it, compose songs because of it, and build entire futures around the hope of finding it. Yet no definition has ever been large enough to contain all that it is. Those who understand love most deeply are not always those who found it. Sometimes, they are those who have lived through its absence. They know what it means to smile while carrying invisible disappointments, and they understand that loneliness is not merely the absence of people, but the absence of the one person with whom silence would have been enough.

Watching Saheeba reminded me that love is rarely sustained by grand declarations or dramatic sacrifices alone. More often, it survives through patience, consistency, understanding, and the quiet decision to keep choosing someone even after the excitement has faded. The series is still unfolding, and perhaps that is why it resonates so deeply with me. Like life itself, its ending has not yet been written. Every episode quietly reminds us that uncertainty is part of every meaningful journey.

The human heart has an astonishing ability to survive what should have broken it. It remembers tenderness after betrayal, imagines tomorrow after years of unanswered prayers, and continues to believe long after experience suggests it should stop. There was a time when I considered hardening my heart because it seemed safer. After all, disappointment cannot wound a heart that no longer expects anything. But I eventually realised that the opposite of heartbreak is not peace. It is indifference. And indifference is far more frightening because it asks us to stop feeling altogether. I would rather carry hope than become indifferent.

Perhaps that is the greatest lesson Saheeba has offered me. Not that love is guaranteed, or that every story reaches the ending we imagine, but that there is quiet courage in remaining emotionally available despite life’s disappointments. To continue believing after years of waiting is its own form of resilience. Hope is not weakness. It is evidence that the heart has refused to surrender.

So I still love love stories. Not because they promise happy endings, but because they remind me that every ending is also the possibility of another beginning. They remind me that hope is never foolish, and that the heart’s willingness to believe again is one of the quiet miracles of being human.

Perhaps the greatest miracle is not finding love. Perhaps it is refusing to let disappointment convince us that love is no longer worth finding. And maybe, just maybe, the most beautiful chapter of my own story has not been written yet.

Auwal Sani is a Lecturer in the Department of Development and Strategic Communication, University of Abuja. He writes on communication, society, culture, and the quiet experiences that shape everyday life.

Continue Reading

Opinion

From JAPA To Libya:Why Africa’s Youth Are Still Falling Into The Human Trafficking Trap

Published

on

 

 

By IFEANYICHUKWU PRECIOUS KANU

When news emerged in April 2025 that dozens of migrants had died while attempting to cross the Mediterranean Sea from Libya to Europe, the reactions were predictable. Social media erupted with outrage, international organisations renewed warnings about irregular migration, and governments promised to intensify efforts against human trafficking and migrant smuggling. Yet, after the headlines faded, the dangerous journeys continued.

According to the International Organization for Migration (IOM), more than 2,300 migrants died or went missing on Mediterranean migration routes in 2024, making it one of the world’s deadliest migration corridors. Thousands of these migrants originated from African countries, including Nigeria, Ghana, Senegal and Eritrea.

This raises an important question: Why do young Africans continue to risk everything despite knowing the dangers?

The answer goes beyond the activities of traffickers. It lies in the widening gap between the aspirations of Africa’s growing youth population and the economic realities they face at home.

In Nigeria, the phenomenon popularly known as “Japa” has evolved from a slang expression into a national conversation. What initially described the migration of highly skilled professionals has become a broader aspiration among students, graduates and young entrepreneurs seeking economic security abroad.

The numbers reflect this trend. Data from the estimates that over 16,000 Nigerian doctors have left the country in the last decade, while the reported issuing more than 15,000 verification certificates in 2023 alone to nurses seeking employment abroad. These figures illustrate a sustained migration of skilled professionals.

Economic conditions help explain this movement. High youth unemployment, persistent inflation, rising living costs and insecurity have made stable livelihoods increasingly difficult. Many graduates spend years searching for employment, while small businesses struggle with rising operating costs and unreliable infrastructure.

Advert

At the same time, success stories from abroad dominate conversations. Families celebrate relatives who send money home from Canada, friends post milestones achieved in the United Kingdom, and classmates announce permanent residency in Germany. Such stories spread rapidly through social media, while accounts of exploitation, detention and death receive far less sustained attention.

This information imbalance creates fertile ground for traffickers.

Nigeria’s foremost anti-trafficking agency, the (NAPTIP), has documented numerous cases involving victims lured with false promises of employment, education and better living conditions overseas. Although states such as Edo have witnessed progress through stronger enforcement and awareness campaigns, trafficking networks have adapted by shifting recruitment to digital platforms. Fake recruitment agencies, fraudulent visa offers and carefully managed social media accounts now serve as powerful tools of deception.

The trafficker’s greatest weapon is not violence; it is hope. Victims often believe they are pursuing legitimate opportunities until they become trapped in systems of debt bondage, forced labour, sexual exploitation or extortion.

Libya remains the clearest example of this crisis. Since the collapse of state authority in 2011, the country has become a major transit point for migrants attempting to reach Europe through irregular routes. The United Nations, the International Organization for Migration, and Amnesty International have repeatedly documented abuses including arbitrary detention, torture, forced labour, sexual violence and ransom demands against migrants held by armed groups and criminal networks.

The persistence of this route demonstrates that awareness campaigns alone cannot solve the problem. Many migrants are already aware of the risks. Their decisions are shaped less by ignorance than by the belief that remaining at home offers even fewer opportunities.

For this reason, human trafficking should not be viewed solely as a criminal justice issue. Arresting traffickers and strengthening border controls remain essential, but they address only the symptoms of a much deeper problem.

Effective responses require governments to invest in labour-intensive sectors capable of creating sustainable employment, improve technical and vocational education, expand access to affordable financing for young entrepreneurs, strengthen social protection programmes and improve public confidence in governance. Equally important is expanding safe and legal migration pathways so that desperate young people are less vulnerable to traffickers who exploit irregular routes.

Ultimately, the continued movement of African youth through Libya is not merely a migration story; it is a reflection of unmet aspirations. People do not willingly cross deserts, endure detention camps and risk drowning because traffickers are persuasive. They do so because they believe that dignity, opportunity and security are more attainable elsewhere.

Until African governments create environments where young people can realistically build prosperous futures at home, trafficking networks will continue to exploit hope, and the route from West Africa through Libya to the Mediterranean will remain one of the continent’s most enduring humanitarian tragedies.

IFEANYICHUKWU PRECIOUS KANU
200 Level, Department of Development and Strategic Communication
Abuja, Nigeria

Continue Reading

Trending