Dangote Group Denies Forex Wrongdoing Amid Economic Strain

Dangote Industries Limited has stepped forward to address and refute what it considers baseless allegations of foreign exchange (forex) malpractices and money laundering amounting to a substantial $3.4 billion. This response comes in the wake of certain online media outlets circulating stories that imply the company’s involvement in unlawful forex activities allegedly facilitated by the Central Bank of Nigeria (CBN) during the tenure of Mr. Godwin Emefiele.

The conglomerate, a prominent fixture in Nigeria’s industrial landscape and a significant player in the African economy, has stated that while it typically refrains from responding to unfounded claims, the resurgence of an accusation that first emerged in 2016 has compelled it to address the issue.

The original report, contested by Dangote Group as an act of economic sabotage by competitors, was disseminated as a paid advertorial in BusinessDay and Leadership newspapers on March 14, 2016. Dangote Industries asserts that the narrative, alleging that money was channeled to its non-Nigerian subsidiaries, leading to illicit financial flows and round-tripping, was discredited and subsequently retracted by the newspapers after they recognized that the content was sponsored by a rival business group.

The recent revival of these allegations, according to Dangote Industries, has been attributed to one Ahmed Fahad, who is alleged to have repackaged the old accusations into a new petition submitted to the newly inaugurated President Bola Ahmed Tinubu and Mr. Jim Obazee, the Special Investigator probing the CBN. The company claims that this has damaged its corporate reputation, with various blogs and social media platforms disseminating different versions of the claims.

Dangote Industries firmly states, “The attempt by the authors of this misleading allegation to give it a fresh life in the media is baffling as the two newspapers that were misguided into publishing it as advertorial then (2016) have since publicly apologized to the Management of Dangote Industries Limited in writing as well as retracted the advertorial in its entirety in their respective publications. Indeed, BusinessDay and Leadership Newspapers admitted that the advertorials were sponsored and paid for by Messrs. BUA Group.”

In a comprehensive press release, Dangote Industries provided detailed clarification and emphasized its status as a global brand that adheres to the best practices of corporate governance, transparency, and compliance with laws and regulations across jurisdictions. To substantiate its claims, the group referred to past approvals granted by the CBN between 2010 and 2018, allowing it to purchase forex totaling $3.755 billion for funding its projects across Africa, of which only 47.70% has been utilized to date.

Dangote Industries highlighted its success in establishing and commissioning projects in several African countries, including cement plants, which were built in accordance with regulatory requirements. The company emphasized that forex for these projects was sourced from the interbank market, with all transactions supported by Letters of Credit in line with international standards. These Letters of Credit were primarily in favor of Sinoma International Engineering Co Ltd, the Chinese contractor responsible for over 75% of the expenditure, and were paid against the presentation of relevant shipping documents, with no funds routed through a Dubai-based entity owned by Dangote.

The company also pointed out the economic benefits of its investments in Nigeria, including the repatriation of foreign exchange earnings totaling USD 576 million through various banks in Nigeria. This includes a cash swap deal with Ethiopian Airlines, which was sanctioned by both the CBN and the National Bank of Ethiopia, resulting in significant forex savings.

Dangote Industries has defended its operations in host countries, explaining that certain payments to local vendors and contractors are mandated to be conducted locally for regulatory and tax reasons. The company assured stakeholders that all transactions were documented, audited, and in compliance with host country regulations, facilitating the repatriation of forex to Nigeria.

The group concluded its statement by reiterating its position as Nigeria’s leading private-sector job creator and taxpayer, emphasizing its investments that surpass both local and international stakeholders. It affirmed its commitment to maintaining its reputation and invited government regulators to scrutinize its records.

Dangote Industries Limited’s robust response to these allegations not only aims to vindicate its name but also seeks to uphold the integrity of Nigeria’s corporate giants on the global stage.

The outcome of this dispute may have broader implications for Nigeria’s economic image and the conduct of foreign exchange business within the country. The company remains resolute in its innocence and hopes that this clarification will preserve the trust and confidence placed in its operations by partners and the general public.