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Development built on crony capitalism? The case of Dangote Cement

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  • Akinyinka Akinyoade
  • Chibuike Uche

Abstract

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.

Suggested Citation

  • Akinyinka Akinyoade & Chibuike Uche, 2018. "Development built on crony capitalism? The case of Dangote Cement," Business History, Taylor & Francis Journals, vol. 60(6), pages 833-858, August.
    • Handle: RePEc:taf:bushst:v:60:y:2018:i:6:p:833-858
    DOI: 10.1080/00076791.2017.1341492
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    Cited by:

    1. Abel Ezeoha & Akinyinka Akinyoade & Ifediora Amobi & Ogbuagu Ekumankama & Paul Kamau & Agnieszka Kazimierczuk & Catherine Mukoko & Ifeanyi Okoye & Chibuike Uche, 2022. "Multinationals, Capital Export, and the Inclusive Development Debate in Developing Countries: The Nigerian Insight," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2224-2250, October.
    2. Folarin Alayande* & Dr. Wumi Olayiwola, 2019. "Trade Policy Incentives, Market Structure and Productivity," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(7), pages 1106-1122, 07-2019.
    3. Pritish Behuria, 2019. "African development and the marginalisation of domestic capitalists," Global Development Institute Working Paper Series esid-115-19, GDI, The University of Manchester.
    4. Effnu Subiyanto, 2020. "A failure innovation strategy of acquisition during excess capacity: financial approach based on case study at the state-owned cement holding PT Semen Indonesia (Persero) Tbk," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-14, December.
    5. Richard Itaman & Christina Wolf, 2021. "Industrial Policy and Monopoly Capitalism in Nigeria: Lessons from the Dangote Business Conglomerate," Development and Change, International Institute of Social Studies, vol. 52(6), pages 1473-1502, November.

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