Aliko Dangote: “Federal Government Makes More Money from Dangote Cement Than We Do” – Why Taxes Matter for Nigeria’s Growth
At the 2025 Taraba International Investment Summit, held on Wednesday, May 21, Nigeria’s wealthiest businessman, Aliko Dangote, made a powerful and enlightening revelation. The founder and president of the Dangote Group disclosed that for every ₦1 generated through the production and sale of Dangote Cement, the Federal Government of Nigeria earns 52 kobo. This statement sheds light on the significant contribution that private sector businesses like Dangote Group make to the nation’s economy, especially through taxation.
As Nigeria grapples with economic challenges, unstable oil revenue, and mounting debt, Dangote's comments highlight a critical truth: tax revenue from successful private enterprises is a cornerstone of national development. In this detailed article, we will unpack Aliko Dangote’s statements, explore their implications for Nigeria’s economic policy, and analyze why taxation—not government ownership—is the true engine for sustainable development.
The Federal Government Earns 52 Kobo for Every ₦1 from Dangote Cement
During his address at the investment summit in Jalingo, Aliko Dangote didn’t hold back when illustrating just how much the federal government benefits from the operations of his cement company.
“I’m sure it might be shocking to you to know that the federal government of Nigeria, not even the state, makes more money from, for example, our cement business. For every ₦1 we turn around, 52 kobo goes to the federal government of Nigeria,” Dangote said.
This means that over 50% of every naira made in revenue by Dangote Cement ends up with the government in one form or another—either through corporate taxes, value-added tax (VAT), import duties, levies, or other fiscal mechanisms. For context, Dangote Cement is one of Nigeria’s most profitable companies, and its revenues contribute significantly to the national treasury.
From an economic point of view, this underlines a major point: private businesses, when allowed to thrive, become engines of public finance. Dangote’s statement emphasizes that government revenue is not only tied to direct state-owned enterprises but can come much more reliably through taxing productive private entities.
"Government Has No Business in Business" – Dangote Reiterates
Dangote also took the opportunity to repeat a long-standing belief that many economists share: that governments should not directly operate businesses, but should rather focus on creating policies and an environment that allows private enterprise to thrive.
“We always say that the government has no business in business. If it’s true, they don’t have business in business. Though, how are they going to make money, educate people, you know, do the hospital, road, infrastructure? It’s through what? Taxes,” he stated.
This insight is crucial for Nigeria, a country where governments—both federal and state—have historically tried to operate various business ventures, often with little success. Examples include failed government-owned airlines, refineries, and manufacturing companies.
What Dangote is advocating for is a clear role for the government as a regulator, enabler, and tax collector—not as a direct market participant. By stepping back from the business frontlines and instead fostering a stable, transparent economic environment, the government can earn more money and improve service delivery through taxes.
The American Model: Taxation, Not Ownership
To further make his point, Dangote drew a comparison with the United States—an economic superpower that has mastered the art of enabling business while maximizing tax income.
“Have you ever heard of the American government owning an oil block? No, the American government doesn’t own an oil block. And they are the biggest producers of oil today in the world. But they make their money through taxes,” he said.
This analogy is particularly important for a resource-rich country like Nigeria. Despite being one of Africa’s biggest oil producers, Nigeria has struggled with declining oil revenues, poor management of state-owned oil assets, and corruption.
In contrast, the U.S. government allows private firms to explore and drill for oil. The government earns its share not by owning the oil wells, but by collecting royalties, taxes, and lease payments. This has allowed America to generate trillions in revenue while encouraging innovation, efficiency, and investment in its oil sector.
Nigeria could learn from this model by privatizing underperforming state-owned assets and focusing on building a taxation system that encourages compliance while stimulating investment.
Domestic Investment First: The Key to Attracting Foreign Capital
Another important message from Dangote’s speech was the need to support domestic investors before trying to attract foreign ones. According to him, foreign investors are more likely to come into an economy when they see that local businesses are already succeeding.
This is a particularly relevant point for Nigeria, where government officials often travel abroad seeking foreign direct investment (FDI), sometimes without creating the right environment back home.
“When we invest locally and show that it’s profitable, foreigners will come. They want to see that Nigerians themselves believe in their country’s economy,” Dangote explained.
For example, the Dangote Group has invested billions of dollars in Nigeria across sectors such as cement, sugar, salt, and most recently, oil refining. These investments create thousands of jobs, support local suppliers, and boost national self-sufficiency.
By making Nigeria a success story for domestic businesses, the country becomes more attractive to international investors who want to minimize risk and maximize returns.
The Bigger Picture: Taxes as a Tool for National Development
At the core of Aliko Dangote’s message is a call to rethink Nigeria’s development model. Instead of relying heavily on oil exports, foreign aid, or borrowing, Nigeria must build a robust tax-based economy where the private sector thrives and the government earns predictable revenue.
Tax revenue, when well-managed, funds everything from:
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Education and schools
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Hospitals and healthcare
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Roads, bridges, and infrastructure
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Security and public safety
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Social welfare and pensions
To achieve this, the government must:
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Simplify the tax system to encourage compliance.
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Eliminate multiple taxation and corrupt tax agents.
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Support entrepreneurs and industrialists.
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Avoid unnecessary interference in private businesses.
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Reinvest tax revenue transparently in national development.
Conclusion: Dangote’s Message is a Wake-Up Call
Aliko Dangote’s remarks at the 2025 Taraba International Investment Summit were more than just a comment on revenue sharing—they were a blueprint for national transformation. By showing that Dangote Cement pays 52 kobo in taxes for every ₦1 earned, he proves that private business can be a bigger contributor to public welfare than state-run enterprises.
His emphasis on taxation, investor confidence, and the role of government as a facilitator—not a competitor—should guide Nigeria’s economic policy in the years to come.
As Nigeria looks for ways to grow its economy, create jobs, and reduce its dependency on oil, Dangote’s approach offers a clear path forward: support local enterprise, collect fair taxes, and reinvest wisely.
