5 Businesses that Dangote has Monopolised & How He Did it

Aliko Dangote, Africa’s richest man, has virtually monopolised specific marketplaces in Nigeria. By seizing and maximising an opportunity he gained in 2003 under former President Olusegun Obasanjo’s administration, he not only rose to prominence but also solidified his products in the Nigerian market.

Dangote skillfully leveraged the sense of national pride and capitalised on the government’s promotion of his goods as Nigeria’s number one manufacturer.

Even though there were other well-known brands before Dangote’s, he took over the market unapologetically.

Here are some of the businesses that Dangote has monopolised in Nigeria.

Cement

While Dangote is active in various businesses, his cement industry accounts for approximately 90% of his total fortune.

Dangote Cement has dominated the African market. It is Nigeria’s largest firm in terms of market capitalisation.

It has a manufacturing capacity of 48.6 million tonnes per year and operates in ten African nations.

In 2017, Dangote Cement owned 65% of the Nigerian cement industry. This gives it the authority to set the country’s commodities pricing. He has profited immensely from the opportunity.

Despite its market advantage, the brand faces significant competition. Dangote Cement’s market share fell to 61% in 2021. Lafarge Africa comes in second with 22%, followed by BUA Cement with 17%.

Sugar

Gone are the days of Saint Louis, a French sugar brand.

Dangote Sugar, Golden Sugar, Bua Sugar, Family Sugar, and Savannah Sugar are presently dominating the Nigerian sugar market.

Dangote Sugar Refinery (DSR) is the largest sugar refinery in Sub-Saharan Africa and the world’s second-largest after Al Khaleel. Al Khaleel has 1.55 MT, while DSR has 1.44 MT.

The sugar brand has an 80% consumer market share in Nigeria’s sugar sector.

In the first half of 2021, Dangote Sugar Refinery’s performance indicators improved significantly with a revenue increase of N131.95 billion (27.8%), compared to N103.23 billion in 2021.

The gross profit increased by N28.59 billion (37.3%) from N20.82 billion in 2021.

The business is, however, in strive competition with BUA refinery limited.

Aliko Dangote and Abdulsamad Rabiu have been at odds for years over market supremacy, from the cement war to charges of sugar price.

With BUA Cement vying for market dominance, the two moguls have been all out with their rivalry.

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Salt

The Dangote Group’s primary salt-processing firm, NASCON Allied Industries Plc, in 2021, had a profit of $5.9 million (N2.42 billion).

Revenue climbed by 14.1% in the first nine months of 2021, from $53.3 million (N21.9 billion) in 2020 to $60.8 million (N24.9 billion). The profit improved by 5.5%, from $5.6 million (N2.29 billion ) to $5.9 million (N2.42 billion).

The company’s primary products include processing raw salt into refined, edible and graded salt. This also includes seasoning products and vegetable oil manufacturing. 

Dangote fertiliser

Dangote Fertiliser Plant is Africa’s largest Granulated Urea Fertilizer complex. The facility cost over  $2.5 billion.

The factory manufactures 3 million metric tons of urea fertiliser per annum in the first phase due to Nigeria’s expected annual fertiliser needs of 5 to 7 million metric tons and the country’s current fertiliser usage of 1.5 million metric tons.

Dangote Fertiliser collaborates with Farmer Associations, Corporate Farms, NPK Blenders, NGO/development partners, and State Governments across Nigeria.

It also partnered with governments across Africa and beyond to increase soil and agricultural yields.

Dangote refinery

The Dangote refinery is a 650,000 BPD integrated refinery and petrochemical facility developed by the Dangote Group. 

The project is expected to be completed in 2022 and will be Africa’s largest oil refinery and the world’s largest single-train complex.

The refinery will process a range of light and medium crude grades to generate Euro-V clean fuels such as gasoline, diesel, jet fuel, and polypropylene.

The construction is estimated to be worth billions of dollars in investment. Due to its high investment rate, Nigeria’s Federal Executive Council (FEC) 2021 authorised a 20% minority share purchase by the state-owned Nigerian National Petroleum Corporation (NNPC) in the billion-dollar project.

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