Home News Companies Nigerians React angrily as Federal Government Exempts Dangote from year-long Border Closure
Companies - November 10, 2020

Nigerians React angrily as Federal Government Exempts Dangote from year-long Border Closure

The Chief Executive Officer of Dangote Cement Plc, Michel Puchercos, disclosed during the company’s recently-held investor call that the Nigerian Government had exempted the company from its land border closure policy.

Introduced in August 2019, the policy saw Nigeria partially blocking all trade movements across its land borders, much to the frustration of businesses and companies. Federal authorities claimed that the move is geared towards controlling the smuggling of essentials and illicit exportation of locally subsidized petroleum products meant for Nigerians.

Although many of those who were affected¬† by the policy have faulted it, others believe that it was well-intended to spur local production whilst facilitating the government’s effort to diversify the economy.

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Now back to Dangote Cement Plc; the company is among the Nigerian exporters that was affected by the company. The cement maker exports its clinker to much of West Africa, including Ghana and Togo. Unfortunately, the restriction prevented them from taking advantage of the West African market for more than a year. And as expected, this impacted negatively on their earnings and profitability during this timeframe.

Note that Michel Puchercos did not disclose much details about what led to the government’s decision to relax its decision on border just for them. In the meantime, analysts at Business Elites Africa see this as a sign that the policy may soon be lifted completely after more than one year in place.

Meanwhile, many Nigerians took to social media (upon learning about the exemption, to react angrily to what they perceived as special treatment for Africa’s richest man, Aliko Dangote. See some of the reactions below.

https://twitter.com/chubiei/status/1325918379526533132?s=19

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