Govt Takes 52% Of Our Income From Cement- Dangote

The Chairman of Dangote Group, Aliko Dangote has said the government is taking 52 per cent of its income from his company, Dangote Cement Plc.

Dangote made the claim on Wednesday following a tour by the Nigerian Economic Summit Group (NESG), team to both Dangote Fertiliser Limited and the Dangote Petroleum Refinery & Petrochemicals in Ibeju Lekki, Lagos.

During the tour, Dangote reiterated the role of the private sector in national development adding that Nigeria’s challenges could largely be overcome by providing gainful employment to its people, according to the statement signed by the Senior General Manager, Corporate Communications of Dangote Industries, Esan Sunday.

The statement quoted Dangote saying, “The concept of a free market should not be used as a pretext for continued import dependence, highlighting that both developed and developing nations, including the USA and China, actively protect their domestic industries to safeguard jobs and promote self-sufficiency. Dangote also cited the example of the Benin Republic, where cement imports are restricted as part of a deliberate strategy to protect local industries, despite the proximity of his Ibese plant.

“The President is a personal friend, and my Ibese plant is just 28km from Benin, yet they refuse to allow imports to protect their local industries, most of which are grinding plants,” he remarked.

“The government stands to gain substantially when the private sector flourishes, noting that 52 kobo (52 per cent) of every naira Dangote Cement generates goes to the government.

“The significant challenges involved, in setting up industries in Nigeria, particularly the substantial capital investment required due to the lack of infrastructure. He stressed that investors are often forced to take on responsibilities for essential services such as power, roads, and ports – services that should be provided by the government.

But findings from the company’s financial statement for the full year of 2023 show that Dangote made N1.297tn from Nigeria out of the N2.2tn it posted from all its segments across Africa.

Its profit before tax was N553.1bn. Based on the income tax rate of 30 per cent was used for the company income tax computation as established by the tax legislation of Nigeria effective in 2023.

As of the end of 2023, Dangote Cement’s tax due to the government was N178.42bn. Out of which N80.9bn was differed. But the N178.42bn due is less than the 52 per cent claimed to be paid to the government.

The books reveal that Dangote paid N64.8bn in the Nigerian segment and N32.69bn across its Pan-African segments making a combined N97.52bn tax payment which was recognised in its the books in 2023.

Similarly, in 2022, Dangote paid N141.691bn out of N168.6bn tax due the government in the period and it deferred N26.91bn tax.

In the year, the group generated revenue of N1.61tn. The taxable profit before tax (PBT) was N524bn while the tax due was N168.6bn which is less than about 32 per cent of the PBT.

Out of the N141.69bn tax paid in 2022 to the government, Dangote Cement paid N135.64 to the Nigerian government while N6.04bn was paid across its Pan African segments in 2022.

Govt Takes 52% Of Our Income From Cement- Dangote is first published on The Whistler Newspaper