by DSRNews DSRNews

Africa’s richest man and President of Dangote Group, Alhaji Aliko Dangote, Wednesday decried the whopping N1.5 trillion Nigeria spends yearly to import food into the country. Dangote stressed that such expenditure put a heavy pressure on Nigeria’s foreign exchange, adding that up to 80 per cent of the inputs in most manufacturing processes in Nigeria still rely on imported components. He noted that Dangote’s backward integration policy had birthed economic advantage for the country. According to him, Nigeria had not taken advantage of its huge population for economic growth, wondering why the country relegated local content while relying heavily on importation. Dangote, who was represented by the Group Executive Director at the company, Ahmed Mansur, spoke on the topic; ‘Industrialisation-Backward integration as a strategy for national development: The Story of the Dangote Group’, during the inauguration ceremony of the University of Ibadan Business School Complex. “With an enviable population and natural resources, not many countries have the advantages that Nigeria offers to manufacturers. Corporations, like Dangote Industries that long ago embarked on backward integration are now starting to reap the benefits. Backward integration is when a business exerts control over sources of raw materials or other business that are part of the overall manufacturing process. For example, a cement trader becomes backwards integrated when he takes ownership or control of bagging, cement grinding, and limestone mining. “It increases control and efficiency because companies are able to control quality and coordinate the delivery of raw materials or other supplies. Costs control, competitive advantages, diversification of talent and competencies are some of the other advantages of backward integration,” he explained. He said some of the benefits and successes that Nigeria economy had begun to enjoy must be protected by strict border control and other government policies. Thursday 26th July, 2018. THISDAY PAGE 52, NIGERIAN TRIBUNE PAGE 32, NEW TELEGRAPHY PAGE 35, VANGUARD PAGE 11