Former Nigerian President Obasanjo Reveals Lafarge's Alleged Obstacles to Dangote's Cement Expansion
Former Nigerian President Olusegun Obasanjo revealed how Lafarge allegedly put obstacles in the way of Aliko Dangote's cement expansion in Africa.
In Brief
- •Former Nigerian President Olusegun Obasanjo revealed how Lafarge allegedly put obstacles in the way of Aliko Dangote's cement expansion in Africa.
- •Obasanjo described Lafarge's actions in Senegal as a 'traumatic' experience for Dangote, who had to pay $12 million to operate his cement factory.
- •Obasanjo linked Dangote's success in cement manufacturing to the development of his oil refinery, citing government policies that encouraged domestic production.
- •Dangote's cement production in Nigeria and other African countries, including Tanzania, Ethiopia, and Senegal, was facilitated by government policies introduced by Obasanjo.
- •Obasanjo's remarks were made during a meeting with Kenyan and other East African institutional investors regarding Dangote Petroleum Refinery's IPO.
Why It Matters
Obasanjo's revelations provide insight into the competitive dynamics within Africa's cement market and the role of government policies in fostering private-sector investment. Dangote's success story underscores the potential for domestic production to drive economic growth and reduce reliance on imports. The dispute between Lafarge and Dangote highlights the challenges and strategies involved in expanding market share in competitive industries.
Key Details
- Cement Production Capacity
- 5 million tonnes
- Dispute Settlement Cost
- $12 million
- Government Policy Year
- 2003
- Refinery Project Cost
- $16 billion
Context & Background
Lafarge, a French cement company, has historically dominated the African cement market. Dangote Group, a Nigerian conglomerate, has been a significant competitor, particularly in cement production. Government policies have played a crucial role in encouraging domestic production and reducing import dependence.
Original Reporting & Sources
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