Aliko Dangote, chairman of the Dangote Group, says he exited his flour and textile businesses due to foreign exchange challenges.
Dangote spoke during an interview with Nicolai Tangen, the chief executive officer 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.
The billionaire also spoke about the personal sacrifices behind his business journey, revealing that he sold his properties in the United States and the United Kingdom 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.
