Dangote Warns That Monopoly Allegations Could Undermine Investor Confidence

Africa’s richest man and Chairman of Dangote Group, Aliko Dangote, has cautioned that persistent allegations of monopoly against his conglomerate could deter both local and foreign investors from committing capital to Nigeria’s industrial and manufacturing sectors. Speaking in Lagos at an industry stakeholders’ forum, Dangote argued that unfounded monopoly claims send the wrong signal about the country’s business environment, particularly at a time when Nigeria is striving to attract fresh investment to boost economic growth and job creation.

Dangote emphasized that his company’s success was built on decades of hard work, strategic investment, and long-term planning, not government favoritism or unfair business practices. He maintained that labeling successful indigenous businesses as monopolies discourages entrepreneurs who aspire to scale up their operations and compete globally. According to him, such negative narratives can harm national development and weaken Nigeria’s industrial base.

“When people say we have a monopoly, it discourages investment because it implies that the government or the system is tilted in favor of one entity,” Dangote said. “This is not true. We took huge risks when no one else was willing to invest in sectors like cement, fertilizer, and now oil refining. Instead of being accused of monopoly, we should be commended for investing billions of dollars to reduce import dependency and create jobs.”

Dangote noted that many of his group’s investments were made in industries that were previously dominated by imports, and that his decision to venture into those areas was driven by a vision to make Nigeria self-sufficient in key commodities. He explained that before Dangote Cement entered the market, Nigeria was importing over 60 percent of its cement requirements, spending billions of dollars annually on imports. “Today, we have not only achieved self-sufficiency in cement but have also become a net exporter to several African countries,” he stated.

Addressing the ongoing debates around the newly commissioned Dangote Refinery, Dangote dismissed claims that the company’s scale of operation would crowd out competition in the downstream oil sector. He clarified that the refinery’s purpose is to help Nigeria end decades of reliance on imported petroleum products and stabilize fuel prices through local refining. “We are not a monopoly; we are a catalyst for industrial transformation,” he said. “Our refinery will create opportunities for local suppliers, contractors, and small businesses in the oil value chain. We believe in inclusive growth, not domination.”

Industry analysts have echoed Dangote’s sentiments, noting that the frequent accusations of monopoly against large indigenous firms may create an atmosphere of suspicion and discourage private capital inflows. According to a recent report by the Manufacturers Association of Nigeria (MAN), investor confidence thrives in transparent and supportive regulatory environments, not in those characterized by negative perceptions of success. The report warned that policymakers and stakeholders must strike a balance between ensuring fair competition and recognizing the legitimate scale advantages of large enterprises.

Dangote’s remarks come at a critical time when Nigeria is seeking to boost industrial output, reduce imports, and stabilize its foreign exchange reserves. The government’s “Renewed Hope” economic agenda prioritizes manufacturing and infrastructure development as key drivers of growth. However, experts have cautioned that attracting private investment requires a predictable policy framework and an investment climate free from political or social bias.

Economist Dr. Bismarck Rewane observed that Nigeria’s industrialization efforts depend heavily on visionary entrepreneurs willing to commit large-scale capital in high-risk sectors. “If investors are constantly criticized or accused of monopolistic behavior simply because they are successful, it sends the wrong message,” he said. “Instead, the focus should be on creating competitive ecosystems where businesses of all sizes can thrive.”

Dangote further stressed that industrialization cannot succeed without domestic champions who are capable of undertaking large-scale projects. He recalled how his company faced skepticism and financial obstacles when it began investing in cement and later in refining. “When we started building the refinery, many people doubted us. But we knew Nigeria needed this project,” he explained. “The same thing happened when we entered cement production. People said it was impossible for Nigeria to produce enough for itself, yet today, we export cement across Africa.”

He also urged the government to support local investors who are committed to the nation’s development. “Foreign investors are important, but we must not neglect our local investors,” Dangote said. “If you don’t protect and encourage your own, others won’t invest either. Every economy that has succeeded—China, India, Brazil—built strong domestic industries before opening up fully to competition.”

Despite the challenges, Dangote reaffirmed his optimism about Nigeria’s economic future. He expressed confidence that with the right policy direction, the country can achieve sustainable industrial growth and become a manufacturing hub for the continent. “Nigeria has the talent, the population, and the resources. What we need is stability, trust, and encouragement for those who are ready to take the risks,” he concluded.

Meanwhile, stakeholders have called on regulatory agencies to improve market monitoring mechanisms to prevent unfair competition while also protecting investors from unjust criticism. They suggested that the focus should be on enhancing efficiency, enforcing transparency, and ensuring a level playing field for all operators.

As Nigeria continues to navigate economic reforms and seek increased industrial participation, Dangote’s warning highlights a critical issue: the need to foster a culture that celebrates success rather than vilifies it. Encouraging large-scale investment, experts argue, is essential for driving the diversification agenda, creating employment, and ensuring sustainable economic growth.