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Aliko Dangote, the richest man in Africa and CEO of the Dangote Group, on Wednesday called on the federal government to use its population growth to spur economic growth.
He wonders why the country relegated the local content
Dangote, who was represented by Ahmed Mansur, executive director of the group, spoke about the theme "Industrialization – Retrograde Integration as a National Development Strategy: the history of the Dangote group, "at the inauguration ceremony. He said Nigeria spent more than 1.5 trillion naira a year on food imports, pointing out that it was putting a lot of pressure on Nigeria's foreign currencies. He explained that up to 80% of inputs in most manufacturing processes in Nigeria still relied on imported components, while noting that Dangote's backward integration policy had spawned economic benefits for the country. country. Many countries have the advantages that Nigeria offers to manufacturers. Companies, such as Dangote Industries, which have long ago started backward integration, are starting to reap the benefits.
"Retrospective integration is an activity that exercises control over the sources of raw materials or other activities of the manufacturing process. For example, a cementist becomes integrated upstream when he takes possession or control of bagging, grinding of cement and limestone extraction.
"It increases control and efficiency because companies can control the quality and coordinate the delivery of raw materials. Provisions. Cost control, competitive advantages, diversification of talents and skills are some of the other benefits of upstream integration.
"It is increasingly important to consolidate and take advantage of these fragile gains. Nigerian Customs and Border Services must effectively verify illegal imports and the declaration of duties and taxes. State governments must be more effective in facilitating land acquisition for large-scale developments.
"Policy orientation and sector selection are critical to the success of integration, import substitution and local content policies. The importance of technological learning, know-how transfer and skills upgrading can not be overestimated and this is an area in which our universities can play a bigger and bigger role. more important than the one they currently occupy "
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