Editorial
This is not a season of good news on the economic terrain across the world. No thanks to the raging COVID-19 pandemic, the lamentation across poor and rich countries is that of severe economic contractions, sharp decline in revenue and productivity in different sectors, large-scale collapse of businesses, massive unemployment and underemployment, increased indebtedness as well as worsening poverty and inequality.
Against this background, the heartwarming, positive news out of Nigeria was the commencement of the export of clinker, a key ingredient in the production of cement, by Dangote Cement, to neighbouring African countries.
The conglomerate’s maiden ship conveying 27, 800 metric tonnes of the commodity departed the country’s shores for Senegal about two weeks ago. Of course, the import of this significant development for the country, particularly at this time, cannot be lost.
Revenues from Nigeria’s economic mainstay, crude oil, have fallen catastrophically as a result of the collapse in global oil prices, even as the paralysis of other critical sectors of the economy as a result of the pandemic has also negatively impacted alternative revenue sources.
Yet, the country continues to require huge amount of resources to meet unanticipated emergency health challenges, expand and maintain critical infrastructure, provide affordable social services and respond to current severe security challenges.
It is thus obvious that the substantial foreign exchange earnings, which will accrue to the country from Dangote Cement’s export of clinker, will help to bridge current revenue shortfalls and facilitate the process of post COVID-19 economic recovery.
Even if this is admittedly only a modest start, it illustrates the vast export revenue earning potential of the Nigerian economy, particularly if more Nigerian businessmen are encouraged and motivated to emulate Dangote’s entrepreneurial spirit.
Thus, it is noteworthy that Dangote Group is set to commence export of 82,000 metric tonnes of clinker to Cameroun monthly, with exports to Ivory Coast and Ghana to follow in due course.
The long term plan is to export four million metric tonnes of clinker annually to various parts of Africa in the next two years.
The expansion in the domestic production capacity of its plants, which this entails, also means that more jobs will be created in the country.
True, Dangote is primarily a businessman and business is not philanthropy. But Dangote’s efforts exemplify Adam Smith’s time-tested maxim that in pursuing his private self interest, the capitalist also promotes the public good.
From massive investments in sugar, salt, condiments, flour, packaging, energy, operations and fertiliser over the years, Dangote Group has emerged as a major pillar of Nigeria’s economy.
As a result of its activities in the cement industry, Nigeria moved from being one of the highest bulk importers of cement to self-sufficiency in the production of the product and is now an emergent major exporter in the industry.
In a similar vein, Dangote Oil Refinery, which is set to come on stream next year in the Lekki Free Trade Zone in Lagos is planned to refine 650,000 barrels of oil per day and generate 9,500 direct and 12,000 indirect jobs.
Dangote is a model of the entrepreneurial energy that can be unleashed in Nigeria if the requisite environment is created for the private sector to thrive.
This is all the more reason why government must sustain and intensify its ongoing efforts to fix, expand and modernise critical infrastructure nationwide.
In particular, no effort should be spared to ensure the country achieves a substantial increase in power supply within the shortest possible time.
No less important is the need to make credit available at affordable interest rates to enable the actualisation of viable business ideas.
Not every budding business entrepreneur can operate on the scale of a Dangote today or survive in the same inclement business climate. But even Dangote was not made in a day. The young must be enabled to grow.
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