Africa’s richest man, Aliko Dangote, has stressed that Nigeria’s industrialisation is hindered by unstable electricity supply and inconsistencies in government policies.
He made this statement during a visit from Zambia’s Minister of Energy, Makozo Chikote, at the Dangote Refinery in Lekki, Lagos.
Dangote highlighted how the lack of reliable power supply in Nigeria significantly raises production costs, making industrial ventures more expensive than in other countries.
He explained that businesses flourish where infrastructure is already established, reducing investment burdens.
“If there’s no power, there won’t be growth,” he said.
“For example, anything I’m going to do abroad will cost me maybe 30 percent cheaper than here because abroad is plug-and-play.
You just go, no infrastructure construction. You just build a factory, and you connect to the network; that’s all.”
He cited Ethiopia as an example, noting that his most profitable cement factory is located there due to its stable power supply.
“That’s why, if you look at it today, I tell you that our most profitable cement factory is in Ethiopia because there’s no investment in power.
They gave us power at the same rate for five years. So, we plan. It’s a one-price electricity continuously.”
Furthermore, Dangote criticised the inconsistencies in Nigeria’s government policies, likening them to a football game where the goalpost is moved mid-play, making success unpredictable.
“One of the problems of industrialisation is inconsistencies in government policies, where, just like a footballer, you’re about to score the goal, and the government will remove the goalpost and point behind you that the goalpost is behind.
So, you have to now turn. Once you turn back, you have a lot of challenges to get to that goalpost again,” he stated.
These challenges, according to Dangote, create uncertainty for investors, discouraging large-scale industrial development in the country.
However, he urged the government to prioritise stable electricity and policy consistency to foster economic growth and attract investments.
Nigeria has long struggled with power supply issues, forcing industries to rely on expensive alternatives such as diesel generators.
Meanwhile, frequent shifts in government regulations make long-term business planning difficult.
Therefore, Dangote’s statement serve as a wake-up call for policymakers to address these issues if they want the country’s industrial sector to thrive.
