How French Company Lafarge Put Obstacles In Dangote’s Way After He Started Cement Manufacturing In Nigeria –Obasanjo
How French Company Lafarge Put Obstacles In Dangote’s Way After He Started Cement Manufacturing In Nigeria –Obasanjo
The former president disclosed this while speaking at the groundbreaking ceremony of a $16 billion oil refinery project in Lamu, Kenya, being undertaken by Dangote.
Former Nigerian President Olusegun Obasanjo has recalled how billionaire businessman Aliko Dangote faced opposition from Lafarge Africa after establishing a major cement manufacturing business in Nigeria.
Obasanjo said people who were opposed to Dangote’s success in Nigeria went to Lafarge and put obstacles in the businessman’s way as he sought to expand his cement operations across Africa.
The former president disclosed this while speaking at the groundbreaking ceremony of a $16 billion oil refinery project in Lamu, Kenya, being undertaken by Dangote.
Obasanjo was recounting Dangote’s journey from cement importer to major manufacturer and his subsequent expansion into other African countries.
According to him, Dangote’s success in Nigeria attracted opposition from interests that did not want him to become a major force in the cement industry.
“People opposed to Dangote’s cement success went to Lafarge and put obstacles in his way,” Obasanjo said.
He said the opposition did not prevent Dangote from expanding his business beyond Nigeria.
Obasanjo recalled that Dangote later established cement operations in countries including Tanzania, Ethiopia and Senegal.
He particularly cited Dangote’s experience in Senegal, where he said the businessman encountered a major setback after completing a five-million-tonne cement project.
“The people who really didn’t want Aliko Dangote to succeed in cement production, they went to a French company called Lafarge. And they put every obstacle on Aliko Dangote‘s way. Just as they are still doing to us today,” he said.
According to Obasanjo, Dangote was unable to operate the plant for two years because local people claimed the land on which the project was located.
Obasanjo said Dangote eventually won the case in court but was still required to pay $12 million before he could begin operating the plant.
Obasanjo’s account came as he praised Dangote’s persistence in building manufacturing capacity across Africa despite the challenges he encountered.
The former president also recalled his role in encouraging Dangote to move away from cement importation and establish domestic production in Nigeria.
He said Nigeria had been producing cement for about 50 years but was still importing the product when he became president.
Obasanjo said he woke up at about 5am one day in 2003 and called Dangote in Lagos to question him about the situation.
He asked Dangote: “Why are you importing cement and you are not producing cement?”
According to Obasanjo, Dangote told him that it was more profitable to import and sell cement than to produce it.
Dangote then suggested that the government should tie cement importation to domestic production, according to Obasanjo.
The former president said his administration subsequently adopted a policy requiring cement importers to demonstrate plans to establish production facilities.
Obasanjo said Dangote proposed producing five million metric tonnes of cement at a time when Nigeria’s total production was only about 2 million to 2.5 million tonnes.
He said the first five-million-tonne cement plant was commissioned shortly before he left office.
According to Obasanjo, Dangote subsequently built another five-million-tonne project before expanding his cement business across Africa.
He said Dangote’s cement expansion eventually reached Tanzania, Ethiopia and Senegal.
Obasanjo also linked Dangote’s cement success to his later decision to undertake other major industrial projects.
He said he visited Dangote’s Lagos refinery two or three months before the Lamu event and was impressed by what he saw.
According to Obasanjo, Dangote gathered his workers during the visit and credited the former president’s policies with helping to create the foundation for his cement manufacturing business, which subsequently gave him the confidence to undertake the refinery project.
Obasanjo repeatedly praised Dangote during his speech, describing him as “my boss.”
