REVEALED – What Dangote Paid As Tax To Nigerian Government In Last three years
The Dangote Group, a Nigerian multinational industrial conglomerate, declared on Thursday that its subsidiaries have contributed N474 billion in taxes to the federal government over three years.
Speaking at the 18th Abuja International Trade Fair, Hashem Ahmed, a representative of the Dangote Group, made this announcement. The fair, taking place from September 28 to October 9, 2023, is a significant multi-sectoral event in Nigeria, providing a platform for exhibitors to showcase products, explore untapped markets, establish valuable business connections, and stay updated on emerging trends in Africa.
Ahmed emphasized that besides being the largest private sector employer, the Dangote Group is also the leading taxpayer. He stated, “In just three years, Dangote subsidiaries paid a staggering N474 billion to the Federal Government. These are Dangote Sugar, Dangote Cement and Dangote Salt, combined.”
He further explained that this substantial financial support by the Dangote Group complements various empowerment and skill acquisition programs, Corporate Social Responsibility initiatives, sponsorships, and philanthropic endeavors, amounting to billions of naira.
Ahmed expressed satisfaction with the government’s efforts, led by President Bola Ahmed Tinubu, in pursuing tax reform policies aimed at expanding the tax base and securing funding for infrastructure development. This is seen as a crucial foundation for the anticipated industrial growth in Nigeria.
Doris Uzoka-Anita, Minister of Industry, Trade and Investment (FMITI), also addressed the issue of taxation, acknowledging that it can be daunting for small businesses and MSMEs, especially considering tight profit margins.
She emphasized the importance of ensuring that taxes collected are used to enhance the local business environment, highlighting the potential role of financing and taxation in driving a new economy in Nigeria, particularly for Micro, Small, and Medium-Sized Enterprises (MSMEs).
The government has unveiled plans to support small businesses and startups in Nigeria to address current economic challenges, including an allocation of N75 billion by March 2024 to bolster the manufacturing sector. Additionally, small grants will be provided to micro-businesses in all 774 local governments across the country, and a fund of N75 billion has been designated to support up to 100,000 start-ups and MSMEs at favorable interest rates repayable over 36 months.
The government has also launched programs in collaboration with partners like Microsoft and the African Development Bank to support the digital and creative industries.
Al-Mujtaba Abubakar, President of the Abuja Chamber of Commerce and Industry (ACCI), highlighted the fair’s theme, “Sustainable Financing and Taxation as Drivers of the New Economy,” and emphasized its role as a platform for businesses to engage with financial and tax institutions, discuss current trends and solutions, and promote sustainable approaches to the African Continental Free Trade Area. The fair will showcase innovative products and solutions in sectors such as fintech, tax collection, payment services, e-health, food processing, and environmental safety.
The event aims to facilitate exchanges between national and international stakeholders and foster interactions between businesses and government agencies. It is expected to draw over 500,000 consumers, providing ample marketing opportunities and exciting activities. The fair’s program includes various events such as business networking, B2B, B2G, and B2C interactions, special days, raffle draws, virtual and physical games, and more. Additionally, the ACCI has collaborated with Zenith Bank plc to offer free stores for women-owned businesses at the fair and is partnering with the FCT Inland Revenue Service for a plenary session on tax harmonization and double taxation.
