DANGOTE GROUP URGES NIGERIA TO BOOST PRODUCTION, CUT IMPORTS AS BUSINESSES SEEK MORE PREDICTABLE INVESTMENT ENVIRONMENT

By Iroyin Yoruba Television

Dangote Group has called for stronger domestic production, deeper local supply chains and reduced dependence on imported goods as Nigeria continues efforts to build a more resilient and competitive economy.

The call was made by Hajia Fatima Wali-Abdurrahman, Regional Director of Dangote Group, during the company’s special day at the 21st Abuja International Trade Fair on Friday. She was represented at the event by Abdullahi Dan-Musa, Group General Manager of the conglomerate.

The company said Nigeria’s ability to withstand economic shocks would depend not only on government policies but also on the country’s capacity to produce more goods locally, develop stronger industrial networks and create conditions that encourage businesses to continue investing.

Wali-Abdurrahman said expanding productive capacity would help strengthen the connection between manufacturers, suppliers, distributors, transport operators, retailers and consumers. Such connections, she said, were important for creating employment and ensuring that more economic activity remained within the country.

She also pointed to the changing environment facing businesses, including inflationary pressures, movements in the exchange rate, changes in tax policies, technological developments and shifts in international trade.

According to her, companies operating in Nigeria are having to adjust to several pressures at the same time, making predictability in the business environment an important consideration for long-term investment decisions.

The Dangote representative said economic resilience should not be understood simply as the ability to survive periods of difficulty. She described it as the capacity of businesses and the wider economy to adapt to changing conditions, innovate and continue investing in productive activities.

She said Dangote Group remained committed to investments designed to expand productive capacity in Nigeria and across Africa, with the objective of creating employment and strengthening local supply chains.

The group has interests across several sectors, including cement, sugar, salt, seasoning, packaging, fertiliser, petrochemicals and petroleum refining. The breadth of those operations means that its activities extend beyond individual factories into networks of suppliers, distributors, contractors, transporters and other businesses.

Wali-Abdurrahman said the experience of Dangote Cement demonstrated the potential of expanding domestic industrial production. She said the company had contributed to Nigeria’s transition from a major cement-importing market to a significant producer and exporter.

The development of local production in sectors previously dependent on imports can affect more than the availability of a particular product. It can create demand for raw materials, machinery, logistics services, professional services and distribution networks while providing opportunities for workers to develop technical and commercial skills.

The company therefore argued that industrialisation should be considered in terms of the wider value chain rather than only the number of factories established.

Manufacturing companies require dependable transportation, electricity, financing, ports, roads, telecommunications and regulatory systems. When these supporting systems function efficiently, businesses can move goods more easily, manage inventories more effectively and reach customers at lower cost.

For Nigeria, where businesses have faced significant operating pressures in recent years, strengthening those connections remains an important part of the broader conversation around economic competitiveness.

Wali-Abdurrahman also highlighted the role of the private sector in generating economic activity through investment. She said local manufacturing could create contracts for other businesses, expand distribution opportunities and support transportation activities.

The development of technical skills was another area identified by the group. Manufacturing operations require workers with expertise in engineering, equipment maintenance, quality control, logistics, production management and other specialised areas.

As more industrial facilities are developed and existing facilities expand, businesses can create opportunities for workers to acquire experience in those fields. Over time, that can contribute to the development of a broader industrial workforce.

The Dangote Group also linked domestic production with export opportunities. A stronger manufacturing base can allow companies to serve Nigerian consumers while also supplying neighbouring African markets, provided products can compete on quality, reliability and cost.

The company's Pan-African expansion strategy is already extending beyond Nigeria. Wali-Abdurrahman said construction had begun on the group's refinery and petrochemical project in Lamu, Kenya.

The development illustrates the company's strategy of combining its industrial investments in Nigeria with projects elsewhere on the continent. For Nigerian companies seeking to expand internationally, access to regional markets can provide additional opportunities for growth while also exposing businesses to new competitive pressures.

The Dangote representative also addressed taxation, saying taxes remained important for financing public services and infrastructure. Revenue generated through taxation contributes to government spending on areas such as education, healthcare, security and infrastructure, all of which can affect the environment in which businesses operate.

At the same time, she called for a predictable, transparent and efficient tax system that would encourage compliance without discouraging investment and innovation.

For businesses, predictability can be important because major industrial projects often require significant capital commitments and operate over many years. Companies making investment decisions need to estimate costs, demand, taxes and regulatory requirements over the life of a project.

Frequent or unexpected changes can make those calculations more difficult, particularly for companies operating in capital-intensive sectors.

The group's comments come as Nigeria continues to seek greater domestic production and reduced dependence on imported goods. Import dependence can expose businesses and consumers to movements in foreign exchange rates, international commodity prices, shipping costs and disruptions in global supply chains.

Increasing local production does not eliminate those challenges completely, because manufacturers themselves may rely on imported machinery, components or raw materials. However, expanding domestic value addition can reduce dependence in particular areas and create additional opportunities for local suppliers.

The Dangote Group's petroleum refining operations were also highlighted during the event.

Wali-Abdurrahman said the Dangote Petroleum Refinery has a refining capacity of 700,000 barrels per day, with an expansion plan that could increase capacity to 1.4 million barrels per day.

The refinery has become an important part of Nigeria's efforts to increase domestic refining capacity and reduce reliance on imported refined petroleum products. Greater domestic refining capacity can potentially reduce the amount of refined fuel that needs to be imported, although the overall impact depends on production levels, domestic demand, crude supply, pricing and the ability of the refinery to operate consistently.

The group said the refinery could also contribute to foreign-exchange conservation by reducing the need to spend foreign currency on imported refined products. It further pointed to the development of local technical expertise as another potential benefit of large-scale industrial operations.

The company has set an ambitious long-term growth objective under its Vision 2030 strategy. Wali-Abdurrahman said the group aims to transform Dangote Industries Limited into a $100 billion enterprise through industrial expansion and investments across Africa.

The target is part of a broader expansion programme involving several sectors rather than dependence on one business alone.

The group's activities in cement, fertiliser, refining, petrochemicals and other areas provide different sources of commercial activity. Expansion across several sectors can allow an industrial group to spread its investments across different markets, although each sector also carries its own operational, regulatory and market risks.

At the Abuja International Trade Fair, the Abuja Chamber of Commerce and Industry also highlighted the importance of trade fairs to commercial activity.

Prof. Adesoji Adesugba, First Deputy President of the Abuja Chamber of Commerce and Industry, said the trade fair had developed beyond being simply an exhibition platform and had become an economic marketplace bringing together businesses, investors, government institutions, diplomatic missions, entrepreneurs and consumers.

Such events can provide businesses with opportunities to display products, identify customers, establish partnerships and explore investment relationships.

For smaller businesses, access to larger companies and institutional buyers can be particularly important because establishing commercial connections can help them expand their customer base and enter new supply chains.

Trade fairs can also provide opportunities for businesses to observe competitors, understand consumer preferences and identify changes in demand.

Adesugba said the relationship between the Abuja Chamber of Commerce and Industry and Dangote Group demonstrated the role that corporate participation can play in sustaining platforms that promote trade and enterprise.

He also pointed to Dangote's investments in sectors including cement, fertiliser, agriculture, refining and petrochemicals as examples of the importance of productive capacity to economic development.

The wider issue raised at the event is how Nigeria can increase the amount of value created within its own economy.

A stronger production base requires more than individual investments. Manufacturers need reliable infrastructure, access to finance, skilled workers, efficient transportation systems, stable regulations and markets large enough to justify investment.

The private sector also needs consumers and businesses capable of purchasing locally produced goods. Where local products are competitive in price and quality, greater domestic demand can encourage manufacturers to expand production.

At the same time, manufacturers must remain competitive enough to participate in regional and international markets. Export growth requires companies to meet standards, maintain consistent quality and manage logistics efficiently.

For Nigeria, increasing exports can also provide businesses with opportunities to earn foreign currency while strengthening the country's position in regional trade.

The discussion at the Abuja International Trade Fair therefore reflects a broader business question: how can Nigeria move from a market that imports a large proportion of its finished products toward one with stronger domestic manufacturing and export capacity?

Dangote Group's position is that expanding production and strengthening local supply chains should form a central part of that effort.

The company has also emphasised that businesses require a predictable environment in which to make long-term investments. While government remains responsible for taxation, infrastructure and regulation, companies are responsible for investing capital, improving productivity, developing workers and maintaining competitive products.

The relationship between those responsibilities will continue to shape Nigeria's business environment.

As companies expand, the benefits of investment can extend beyond the companies themselves when local suppliers, employees, distributors and service providers participate in the resulting economic activity.

The Dangote Group's latest call therefore places domestic production, investment predictability and export development at the centre of its message to policymakers and the business community.

The Abuja trade fair has provided a platform for that conversation at a time when businesses across Nigeria are navigating changing costs, exchange-rate conditions, taxation, technology and international trade patterns.

Whether increased production can translate into broader economic gains will depend on how effectively businesses, government institutions and supporting industries address those challenges.

For now, the message from the Dangote Group is clear: expanding productive capacity, strengthening local supply chains and creating an environment capable of attracting and retaining investment remain central issues for Nigeria's business sector.