Development built on crony capitalism? : the case of Dangote Cement

TitleDevelopment built on crony capitalism? : the case of Dangote Cement
Publication TypeJournal Article
Year of Publication2017
AuthorsA. Akinyoade, and C.U. Uche
Secondary TitleBusiness history
Pagination1 - 27
Date Published2017///
Publication Languageeng
Keywordscement industry, Nigeria

This paper critiques the emergence of Dangote Cement as the dominant player in cement manufacturing in Nigeria. It argues that the changed economic environment General Obasanjo met when he became president of Nigeria for a second time in 1999 made it difficult for him to continue the nationalisation policies and the expansion of government involvement in several spheres of economic activity that he helped to promote in the 1970s. The realisation that this strategy, which created numerous crony capitalists, was unsustainable resulted in Obasanjo allying with Dangote and promulgating the Backward Integration Programme (BIP) for the local cement industry. This made it possible for Dangote to risk aggressive investment in the capital-intensive cement production business. This strategy achieved public good by rapidly making Nigeria, an oil rent- and import-dependent economy with enormous limestone reserves, self-sufficient in cement production.

Citation Key9319