Connect with us

Business

Dangote: End of the Road for a Monopolist? By Soji Adekunmbi

Published

on

Major currency devaluation in 2023, also caused the Dangote group to record a significant FX loss of N2.7 trillion in 2023 as the company faces a mismatch between USD denominated debt and domestic revenues. Fitch expects the devaluation to continue at a higher pace in 2024 leading to more losses. The group plans to divest a 12.75% stake in DORC in 2024. The group intends to service its significant syndicated loan maturing in August 2024 from the equity divestment. “However, timely divestment and meeting the imminent maturity is highly uncertain in our view,” Fitch said. Fitch expects DIL’s EBITDA margins in cement production to drop further in 2024 following softer retail demand for cement particularly in the Nigerian market as well as limited ability to pass on increased raw material cost to consumers. Fitch downgraded the National Long-Term Rating to ‘B+(nga)’ from ‘AA(nga)’ and senior unsecured debt rating issued by Dangote Industries Funding Plc to ‘B+(nga)’ from ‘AA(nga)’. Fitch has simultaneously placed the ratings on Rating Watch Negative (RWN). The RWN reflects uncertainty related to the group’s ability to refinance maturing debt. FITCH DOWNGRADES DANGOTE INDUSTRIES RATINGS OVER LIQUIDITY POSITION

Dangote: End of the Road for a Monopolist? By Soji Adekunmbi

 

 

 

 

 

Sahara Weekly Reports That In the last one month, easily one of the most discussed issues in Nigeria is the allegation by the Dangote Refinery accusing the International Oil Companies (IOCs) of frustrating its operations by refusing to sell crude to it.

 

 

 

 

 

 

 

 

In a statement released in July, which later followed up by Alhaji Aliko Dangote himself, the company said the IOCs preferred to sell their crude to Asian countries or ask them to buy from the foreign subsidiaries instead of giving them priority as directed by Nigeria’s upstream regulatory body, the National Upstream Regulatory Commission (NUPRC).

 

 

 

Dangote: End of the Road for a Monopolist? By Soji Adekunmbi

 

 

 

The company said this development would significantly affect the price of its products because to increase because the trading arms offer cargoes at $2 to $4 per barrel, above NUPRC official price.

 

 

 

 

 

 

 

 

“When we entered the market to purchase our crude requirement for August, the international trading arms told us that they had entered their Nigerian cargoes into a Pertamina (the Indonesia National Oil Company) tender, and we had to wait for the tender to conclude to see what is still available”, the company said recently in a statement.

 

 

 

 

 

 

 

 

 

In addition to the allegation against the IOCs, Dangote and his group have also accused oil marketers of shady business practices such as importation of adulterated diesel.

 

 

 

 

 

 

 

 

Naturally, some Nigerians have in a fit of patriotic fervor, lined up behind the Dangote Refinery accusing both the Nigerian government and the NNPC Limited, which, like Dangote, is a business entity operating in the same market, of through a business owned by a Nigerian under the bus.

 

 

 

 

 

 

 

 

 

The picture has been painted of a government not supportive of indigenous investment in the Nigerian oil and gas sector.

 

 

 

 

 

 

 

 

 

But is this really the case? Is the Federal Government throwing Dangote to the sharks? Is it out to destroy his business as is being alleged by some Nigerians? The truth is, the allegations do not square with the reality on the ground but are largely driven by sentiments.

 

 

 

 

 

 

 

 

 

Before addressing the real issues, let me first of all make a point which discerning Nigerians will admit to be the truth and nothing but the truth. And this is the fact that there is no Nigerian businessman living or dead who has been as mollycoddled or pampered by successive Nigerian governments, as Alhaji Aliko Dangote.

 

 

 

 

 

 

 

 

 

Practically every Federal Government since 1999 regardless of party affiliation has bent over backward to give the Kano born businessman unfair advantage over his competitors in the businesses he runs from the food, confectionery or cement business. He has been given waiver after waiver to the effect that he has literally wiped out competition in these businesses to create virtual monopoly. Businesses like Ibeto Cement and Larfage are some of the businesses whose market share shrunk as a result of the unfair advantage conferred on Dangote by the government. In fact, many Nigeria aver that but for government patronage and support, he would be nowhere the billionaire status that he enjoys today.

 

 

 

 

 

 

 

 

 

 

Now, to address Dangote’s allegations directly; the first issue to be established is that the oil and gas sector like every other sector of the Nigerian economy has its nuances or peculiarities. Further, before Dangote Refinery came on board, oil marketing had been in existence with a combined investment portfolio of over N3 trillion in the downstream petroleum sector.

 

 

 

 

 

 

 

 

 

 

The arrival on the scene of the refinery was welcomed by the marketers who saw it as a Nigerian project and they were ready to work with him for the mutual benefit of Nigerians and their businesses.

 

 

 

 

 

 

 

 

 

 

Early last month the marketers met with Dangote and raised concerns about his business model which was designed to sell fuels directly through the gantry and cut off depots. He acknowledged their worry and assured them that gantry sales commenced due to urgent needs to evacuate stock in order not to stall continuous refining process.

 

 

 

 

 

 

 

 

 

The gantry can load enough to meet daily national consumption (his actual aim and intent) except that roads will be damaged and it cannot be the same as loading from Lagos, Oghara, Koko, Ph, Ifie-Kporo, Mboh, Calabar and other locations where depots are located.

 

At the meeting marketers also mentioned the price disparity between local marketers and foreign traders who get DR’s product cheaper by at least, $50/metric tonne than what is offered local companies and Dangote promised that these would be addressed to the mutual benefits of all and he urged marketers to just come forward with orders; alas! DR reneged and continued as it had been selling.

 

Since the Petroleum Industry Act (PIA) 2021 allows imports under certain conditions, marketers proceeded to call his refinery’s bluff and import cheaper AGO! Dangote tried to block this through the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), the agency regulating Midstream and downstream operations in the oil and gas sector (NMDPRA) but both were reported to President Bola Tinubu who directed a reversal of the regulator’s blockade.

 

There are business entities who toed a similar path when confront with some of the challenges seemingly facing Dangote. In Saudi Arabia, the Saudi government sold Aramco, the national oil company to the public when it faced difficulties.

Even Microsoft founder, Bill Gates sold off majority of his stake in the company retaining a mere five percent interest in the business. Gates took that route after facing anti-trade court cases following Microsoft’s monopolistic nature, which had caused the collapse of several IT companies.

 

Dangote should do the needful by selling shares to Nigerians as it is obvious given the intricate nature of business in the oil and gas sector particularly the huge capital outlay required to keep a business going, he cannot pull it off alone.

 

The writer is an Abuja based public policy analyst.

Business

Adron Homes at 14: From Shimawa to Over 60 Livable Communities, Building Cities Beyond Estates

Published

on

Adron Homes at 14: From Shimawa to Over 60 Livable Communities, Building Cities Beyond Estates

 

 

Fourteen years ago, what began as a visionary real estate development effort in Shimawa, Ogun State, has evolved into one of Nigeria’s most recognizable housing success stories. Today, Adron Homes & Properties stands as a major force in structured urban development, with over 60 livable communities and estate dwellings spread across key regions of the country. Its journey reflects a deliberate mission that is not just to sell land, but to build functional cities where Nigerians can live with dignity, security, and a strong sense of community.

 

At a time when Nigeria faces rapid urbanization and an ever-growing housing deficit, Adron Homes has embraced an approach rooted in planning and affordability. From its earliest developments, the company adopted a city-building model that integrates structured layouts, accessible infrastructure, and community-focused design. Roads, drainage systems, green areas, and designated social spaces are incorporated into estate planning, transforming empty land into organized residential hubs.

 

The story of Adron’s growth mirrors Nigeria’s evolving urban landscape. Beginning in Shimawa, the company strategically expanded into major growth corridors, including Lagos, Ogun, Oyo, Osun, Ekiti, Abuja, Nasarawa, Niger, and beyond. Its estates have not only provided shelter but have also influenced the emergence of new residential districts, encouraging organized expansion and helping to reduce the challenges associated with unplanned settlements.

 

Central to the company’s success is its commitment to affordability. Through flexible payment structures and innovative housing initiatives, Adron Homes has opened the door to homeownership for thousands of Nigerians who previously considered property ownership out of reach. This democratization of housing has empowered families, strengthened communities, and supported economic growth through increased property investment and local business opportunities within estates.

 

Beyond physical structures, Adron Homes prioritizes community building. Estates are designed as living ecosystems where families interact, children grow in secure environments, and entrepreneurs find opportunities to thrive. The emphasis on social cohesion has helped transform residential spaces into vibrant neighborhoods, reinforcing the idea that housing development should nurture human connection as much as physical infrastructure.

 

As Nigeria continues to urbanize, Adron Homes’ model demonstrates that real estate development can be both commercially viable and socially impactful. Its projects serve as reference points for emerging residential corridors, attracting further investment and setting standards for organized development across multiple regions.

 

Celebrating fourteen years of growth and innovation, Adron Homes remains committed to shaping Nigeria’s urban future through sustainable planning, inclusive housing solutions, and community-driven development. From its humble beginnings in Shimawa to a nationwide network of livable communities, the company’s journey stands as a testament to the power of vision, resilience, and a steadfast belief that cities are built not just with structures, but with people at their heart.

 

Adron Homes at 14: From Shimawa to Over 60 Livable Communities, Building Cities Beyond Estates

Continue Reading

Business

14 Years of Democratizing Landownership: How Adron Homes Is Redefining Mass Housing in Nigeria

Published

on

14 Years of Democratizing Landownership: How Adron Homes Is Redefining Mass Housing in Nigeria

 

 

For decades, homeownership in Nigeria remained an elusive dream for millions, restricted by rising rents, unstable housing markets, and mortgage systems beyond the reach of the average citizen. Fourteen years ago, Adron Homes and Properties Limited set out to challenge this reality with a bold and disruptive vision: to make land and homeownership affordable, accessible, and achievable for everyday Nigerians.

 

Founded on the principle that housing should be a right and not a privilege, Adron Homes has steadily emerged as one of Nigeria’s most influential mass housing developers. At the heart of its success is an affordability-driven model that prioritizes inclusion without compromising quality. Through flexible payment plans, low initial deposits, and extended installment options, the company has broken long-standing financial barriers that once excluded civil servants, young professionals, artisans, traders, and Nigerians in the diaspora from owning property.

 

Fourteen years on, this vision has translated into tangible impact across over 60 estates nationwide, strategically located in major and emerging growth corridors including Ibeju-Lekki, Lekki–Epe, Badagry, Shimawa, Papalanto, Sagamu, Abeokuta, Ibadan, Osun, Ekiti, Abuja, Nasarawa, and Niger State. Each estate represents more than infrastructure, it reflects Adron Homes’ commitment to decentralizing development and expanding access to property ownership beyond traditional urban centers.

 

Through this mass housing initiative, thousands of Nigerians have successfully transitioned from tenants to landlords, many achieving property ownership for the first time. Unlike conventional real estate models that emphasize exclusivity and luxury, Adron Homes has consistently aligned its offerings with the real income realities of the Nigerian population, ensuring that housing solutions remain practical, inclusive, and sustainable.

 

Beyond affordability, trust has remained a defining pillar of the Adron Homes brand. The company places strong emphasis on secure land titles, transparent documentation, and regulatory compliance, protecting subscribers from land disputes and fraudulent transactions. This focus on integrity has strengthened customer confidence and positioned Adron Homes as a dependable gateway to long-term wealth creation through real estate.

 

As Adron Homes marks its 14th anniversary, its mass housing journey stands as more than a corporate achievement but a national intervention. By restoring dignity, promoting financial security, and transforming thousands of property ownership dreams into reality, Adron Homes continues to play a vital role in shaping Nigeria’s housing landscape and building a future where more citizens can truly call a place their own.

Continue Reading

Business

Deadline of Compliance: Nigeria’s Urgent Call for Tax Return Filing

Published

on

Deadline of Compliance: Nigeria’s Urgent Call for Tax Return Filing

By George Omagbemi Sylvester | Published by SaharaWeeklyNG.com

“Shift or Structural Demand? A Declaration of Civic Duty in a Nation at a Fiscal Crossroads.”

In the unfolding narrative of national development and economic reform, few instruments are as defining as tax compliance. For Nigeria, a nation perpetually grappling with revenue shortfalls, structural dependency on a single export commodity, and entrenched informal economic behaviour, the Federal Government’s recent clarification on tax return deadlines is not mere bureaucratic noise. It is a deliberate and inescapable declaration: the social contract between citizen and state must be honoured through transparent, lawful and timely tax reporting.

At its core, the government’s pronouncement is stark in its simplicity and radical in its implications. Federal authorities, speaking through the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, have made it unequivocally clear that every Nigerian, whether employer or individual taxpayer, must file annual tax returns under the law. This encompasses self-assessment filings by individuals that too many assumed ended once employers deducted pay-as-you-earn taxes from their salaries.

This is not an optional civic suggestion, it is mandatory, backed by statute, and tied to a broader vision of national fiscal responsibility. Citizens can no longer hide behind ignorance, apathy, or false assumptions. “Many people assume that if their employer deducts tax from their salaries, their obligations end there. That is wrong,” Oyedele warned, emphasizing that the obligation to file remains with the individual under both existing and newly reformed tax laws.

The Deadlines and the Reality They Reveal.
Across the federation, state and federal revenue authorities have reaffirmed statutory deadlines in pursuit of compliance. The Lagos State Internal Revenue Service, for instance, moved to extend its filing date for employer returns by a narrow window, reflecting the reality that compliance often lags behind legal timelines. The extension was intended not as leniency, but as a pragmatic effort to allow accurate and complete submissions, underscoring that true compliance rises above mere mechanical ticking of a box.

At the federal level, Oyedele’s intervention was even more fundamental. He reminded Nigerians that annual tax returns for the preceding year must be filed in good faith, with integrity and in respect of the law. This applies regardless of income level including low-income earners who have historically believed that they are outside the tax net. “All of us must file our returns, including those earning low income,” he stated.

Herein lies one of the most challenging truths of contemporary Nigerian governance: widespread tax non-compliance is not just a technical breach of law, it is a deep cultural and structural issue that reflects decades of mistrust between citizens and the state.

The Root of the Problem: Non-Compliance as a Symptom.
Nigeria’s tax culture has long been under scrutiny. Public discourse and economic analysis consistently show that a significant majority of eligible taxpayers do not file annual returns. Oyedele highlighted that even in states widely regarded as tax administration leaders, compliance remains strikingly low, often below five percent.

This widespread non-compliance stems from multiple sources:

A long history of weak tax administration systems, where enforcement was inconsistent and penalties were rarely applied.

A perception that public services do not reflect the taxes collected, eroding the citizenry’s belief in reciprocity.

An informal economy where income often goes unrecorded, making filing seem irrelevant or impossible to many.

Lack of awareness, with many Nigerians genuinely believing that tax liability ends with employer deductions.

The government’s renewed push for compliance directly challenges these perceptions. It signals a shift from voluntary or lax compliance to structured accountability, a stance that aligns with best practices in modern public finance.

Why This Matters: Beyond Deadlines.
At its most profound level, the insistence on tax return filings is about nation-building and shared responsibility.

Scholars of public finance universally agree that a robust tax system is the backbone of sustainable development. As the eminent economist Dr. Joseph E. Stiglitz has observed, “A society that cannot mobilize its own resources through fair taxation undermines both its government’s legitimacy and its capacity to provide for its people.” Filing tax returns is not a mere administrative task, it is a declaration of participation in the collective project of national advancement.

In Nigeria’s context, this declaration carries weight. With the enactment of comprehensive tax reforms in recent years (including unified frameworks for tax administration and enforcement) authorities now possess broader statutory tools to ensure compliance and accountability. These measures, which include electronic filing platforms and stronger enforcement powers, have been framed as fair and equitable, targeting efficiency rather than arbitrariness.

Yet the success of these reforms depends heavily on citizens embracing their civic duties with sincerity. And this depends on mutual trust, the belief that paying taxes yields tangible benefits in infrastructure, education, healthcare, security and social services.

Voices From Experts: Fiscal Responsibility as a Public Ethic.
Tax law experts and economists, reflecting on the compliance push, have underscored a universal theme: taxation without transparency is inequity, but taxation with accountability is empowerment. When managed with fairness, a functional tax system can reduce dependency on volatile revenue sources, stabilise national budgets, and support long-term investment in human capital.

Professor Aisha Bello, a respected authority in fiscal policy, notes that “Tax compliance is not a burden; it is the foundation upon which social contracts are built. A citizen who honours tax obligations affirms the legitimacy of governance and demands better performance in return.”

Similarly, a leading tax scholar, Dr. Emeka Okon, argues that “The era when Nigerians could evade broader tax responsibilities simply because automatic deductions occur at source must end. For a modern economy, every eligible citizen must be part of the formal tax fold not as victims, but as stakeholders.”

These authoritative voices point to an unassailable truth: filing tax returns is both a legal requirement and a moral responsibility, an expression of citizenship in its fullest sense.

Challenges on the Ground: Compliance and Capacity.
While the rhetoric of compliance is compelling, the reality on the ground demands nuanced understanding. Many taxpayers (especially in the informal sector) lack meaningful access to digital platforms and resources for filing returns. For others, the fear of bureaucratic complexity and perceived punitive enforcement deters participation.

The government, for its part, has responded by promoting online systems and pledging greater taxpayer support. Tax authorities are increasingly engaging stakeholders to demystify filing processes, explain requirements and offer assistance. This mix of enforcement and facilitation is essential. As one seasoned revenue specialist observed: “The state cannot compel compliance through force alone; it must earn it through education, simplicity and fairness.”

The Broader Implication: A New Social Compact.
Ultimately, Nigeria’s renewed emphasis on tax return filing transcends administrative deadlines. It is an unequivocal declaration that national development is a shared responsibility, that citizens and state must engage in a transparent, accountable, and reciprocal relationship.

Tax compliance, therefore, becomes far more than a legal act; it becomes a moral claim on the nation’s future.

When citizens file their returns honestly, they affirm their stake in the nation’s destiny. When the government collects taxes transparently and deploys them effectively, it strengthens not only public services but civic trust itself.

In this sense, the deadlines proclaimed by Nigeria’s fiscal authorities mark not an end but a beginning; the beginning of a civic epoch in which accountability replaces apathy, participation replaces indifference and national purpose triumphs over fragmentation.

The road ahead will not be easy. But in demanding compliance, Nigeria is demanding more than tax returns. It is demanding commitment and that, ultimately, is the foundation on which nations are built.

 

Continue Reading

Cover Of The Week

Trending