Aliko Dangote, chairman of the Dangote Group, says he exited his flour and textile businesses due to foreign exchange (FX) challenges.
Dangote spoke during an interview with Nicolai Tangen, the
chief executive officer (CEO) of Norges Bank Investment Management, posted on
YouTube on Wednesday.
The billionaire also talked about critical decisions that
shaped his business journey.
“Yes, I exited that (flour and textile) because of the
foreign exchange challenges. But today, we are very good in terms of exports,”
he said.
The industrialist said part of the company’s new proposition
is a commitment to pay dividends in dollars across key businesses, including
cement, refinery, petrochemicals, and fertiliser.
“We guarantee to pay you dividends in dollars because we are
very well into exports. 80 percent of our revenue will be in dollars, that is
why we are saying you have a choice,” Dangote said.
“If you want, for locals, we can pay you in naira. But if
you don’t want naira, you want to derisk… because most foreign investors,
sometimes, once they invest in a company, what actually matters to them is that
when they get their dividends, it is difficult to also get money to buy and
remit your money? But we have addressed that issue.”
Speaking on how he chooses sectors to invest in, the
chairman said his business strategy is driven by local demand and reducing
Nigeria’s dependence on imports.
“We do what you call ‘backward integration’. We produce what
we need, and we are now producing things that when you wake up as a human being
every morning, you must use part of what we produce,” he said.
‘I SOLD MY PROPERTIES IN US, UK TO FOCUS ON BUSINESS IN
NIGERIA’
The billionaire also spoke about the personal sacrifices
behind his business journey, revealing that he sold his properties in the
United States (US) and the United Kingdom (UK) to focus fully on building
businesses in Nigeria.
“When I decided to go into the industry, you know what I
did? I sold all my properties in the US. I had two houses in the US, big
mansions, and I had a house in the UK. I wanted to really sit in Nigeria and
concentrate,” Dangote said.
“When you own a holiday home anywhere, you have to create
time to go and use that property. Now my life is very simple. Wherever I go, I
use hotels. I pay. When I leave, nobody will call me and say I have a burst
pipe or something is wrong.”
The industrialist said he remains fully committed to his
work and approaches every venture with a clear long-term vision.
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