By Abubakar Yunusa
Africa’s leading industrialist, Aliko Dangote, shut down or exited six businesses before completing his multibillion-dollar refinery project, following years of setbacks across different sectors.
The businesses included ventures in textiles, flour, telecommunications, aviation and food processing, according to a report by Legit.ng published on Monday.
Dangote’s journey to building the refinery was therefore marked by several costly business decisions, with the billionaire later describing his experience in the textile industry as his biggest business mistake.
“My biggest business mistake was textiles,” Dangote was quoted as saying.
The textile investments included Dangote General Textile Mills and Nigerian Textile Mills.
The businesses struggled amid cheap imports, unreliable electricity, high operating costs and competition from Chinese and Indian products.
The closures reportedly affected nearly 8,000 workers, including 6,920 employees at Nigerian Textile Mills in Ikeja.
The group was also involved in the flour business through Dangote Flour Mills, established in 1999 and listed in 2008.
In 2012, Dangote sold a 65 per cent stake in the company to South Africa’s Tiger Brands for about $200m.
However, Dangote later bought the business back after Tiger Brands exited.
He subsequently left the flour business again, with Olam acquiring Dangote Flour Mills for N120bn in 2019.
Dangote also attempted to enter Nigeria’s telecommunications sector.
The group reportedly paid about $20m for a licence and planned to compete with major operators, including MTN, Glo and Airtel.
However, regulatory delays, internal disagreements and the cost of building a nationwide network prevented the project from becoming operational.
In the food-processing sector, Dangote’s tomato factory in Kano also faced difficulties.
The facility, which opened in 2016, had the capacity to process 1,200 tonnes of fresh tomatoes daily.
But inadequate supplies and high operating costs repeatedly affected production.
By 2021, Dangote said farmers were supplying only about 20 per cent of the factory’s capacity.
His aviation venture also proved short-lived.
In 2002, Dangote partnered with Sam Iwuajoku and Seaside View Management to establish Executive Jets Services.
The company began VIP charter operations but later abandoned the venture.
Dangote also sold Liberty Merchant Bank for N1.2bn, partly to meet obligations arising from the closure of his textile businesses.
“By the time we sold Liberty, I cashed out N1.2 billion,” he said.
“The industry consumed N985 million to pay pensions and gratuities just to get out of the business.”
The setbacks came years before Dangote completed his refinery in Lagos.
The Dangote refinery has a nameplate capacity of 650,000 barrels per day and began commercial operations in January 2024, according to the US Energy Information Administration.
The refinery is now one of the defining projects of Dangote’s industrial empire, although its path was preceded by several business exits and failed ventures.
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