By Mohammed Taoheed
There exists a tussle between Aliko Dangote, the renowned owner of Dangote Group of Comapaines and Abdul Samad Rabiu, the lead of BUA Group).
It is a struggle of competition and monopolistic dominance of the Nigerian business market. The age-long issue comes into limelight again and in this story, the BlackBox Nigeria will highlight some important things you should know about the crisis between the two tycoons.
1. Age-Long Rivalry: The feud between Aliko Dangote and Abdul Samad Rabiu is about three decades now with a major focus on who controls the sugar and cement sectors of the Nigerian economy.
It was learnt that Dangote owns the largest industrial conglomerate in West Africa, with Dangote Cement as the largest producer in Nigeria, holding over 60% market share.
Meanwhile, BUA Cement, established by Rabiu, is the second-largest producer, with around 20% market share. Their rivalry began in 2008 when BUA Cement came into the market.
2. Limestone Quarry Dispute: In 2020, the feud gained more fire as BUA Cement accused Dangote Cement of blocking access to its limestone quarry in Edo State, leading to ongoing legal proceedings.
3. Media War: The recent battle flared up when Dangote accused Rabiu of sponsoring false reports against him and his businesses, including allegations of illegal foreign exchange deals.
BUA Group allegedly claimed that Dangote had engaged in tactics to impede its business activities, including a bounced cheque incident and the revocation of land for a sugar refinery project.
However, it should be noted that BUA has overcome several obstacles, such as a contested land lease for a sugar refinery and resistance in establishing a floating cement terminal, demonstrating resilience in their business endeavors.
4. Political Interference: Political personalities, the likes of the deceased President Umar Musa Yar’Adua, have played a vital role in resolving some of the disputes between the two financial icons but all to no avail.
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