Dangote investments account for 10% of Nigeria’s GDP- Report

…With investments worth more than $40bn in Nigeria
…Targets biggest $10bn philanthropic foundation in Africa
As Nigeria remains the biggest economy in Africa, latest report has revealed that more than whopping $40 billion investments by the Dangote Group are responsible for over 10 per cent of the Nigeria’s Gross Domestic Product (GDP).

The report, published by TIME Magazine recently, revealed that Aliko Dangote is currently worth $14.1 billion, but his company’s investment is responsible for much more than his net worth.

In fact, the World Bank had said that Nigeria’s GDP stood at $404.653 billion as at end of 2016, maintaining its stance as Africa’s biggest economy, over South Africa and Angola till date.

But the claims that the Dangote Group investments contributed upwards of 10 per cent of Nigeria’s GDP, which was reported by the international economists, the TIME, suggested that Dangote Group has investments worth more than $40 billion in Nigeria, ranging from cement to food products, and now, to oil and gas.

It is worthy of note that in the next two years, the Dangote Group will complete the building of the world’s largest greenfield refinery, estimated to be worth upwards of $10.5 billion in Lagos.

The billionaire also runs arguably the biggest cement company in Africa, with an operating revenue of N240 billion as at Q2, 2018 and a market cap of N3.62 trillion (over $10 billion).

Dangote Cement is also the biggest company, by market cap, on the Nigerian Stock Exchange, ahead of Nestle and Nigerian Breweries combined.

In 2016, MTN Group, the biggest telecommunications company in Nigeria and on the continent, also claimed to have been responsible for about 4.5 percent of Nigeria’s GDP.

Just recently, the President, Dangote Group, Aliko Dangote, stated that being Africa’s richest man is not enough, but dreams to be the biggest giver to charitable causes in Africa.

“I want to be known as the biggest philanthropist in Africa,” he said, stating that he aims to have a foundation worth $10 billion within the next five to seven years.

Although, a total sum of $1.2 billion has been invested in the foundation, Dangote was recently named the sixth most charitable person in the world.

He also wants to build and run Nigeria’s biggest diary farm, with over 300,000 high-yield dairy cows, meeting the needs of the West African region.

“With the right kind of support, we could feed the entire West African region. It’s possible. Not today, but in the next 10 years,” he added.

Meanwhile, Nigeria’s GDP growth has declined from 1.95 per cent recorded in the first quarter (Q1) 2018 to 1.50 per cent in the second quarter (Q2 2018) indicting a 0.45 per cent contraction.

The National Bureau of Statistics (NBS) in its recent report stated that the economy grew by 0.72 per cent in the same period in 2017, which was largely dependent on its rich crude reserves.

The Nigerian economy began climbing out of its first recession in 25 years in 2016 as President Muhammadu Buhari’s government implemented the early stages of a turnaround plan.

But the pace of recovery has been relatively slow, and since the beginning of this year has again started to dip.

For instance, the oil sector shrank 3.95 per cent in the second quarter, the National Bureau of Statistics said oil production dipped to 1.84 million barrels per day (mpbd) from 2 mpbd in the first quarter.

But the NBS reported that for the first time since the exit from recession, growth was driven by the non-oil sector which grew by 2.05 per cent represented the strongest growth in non-oil GDP since Q4 2015.

Non-oil GDP growth which was -0.18 per cent in Q1 2016, -0.38 per cent in Q2 2016, 0.03 per cent in Q3 2016, -0.33 per cent in Q4 2016, 0.72 per cent in Q1 2017, 0.45 per cent in Q2 2017, -0.76 per cent in Q3 2017, 1.45 per cent in Q4 2017and 0.76 per cent in Q1 2018 grew strongly in Q2 2018 by 2.05 per cent.

Non-oil growth was driven by transportation which grew by 21.76 per cent supported by growth in construction which grew by 7.66 per cent and electricity which grew by 7.59 per cent.

Other non-oil sectors that drove growth in Q2 2018 include telecommunication which grew by 11.51 per cent, water supply and sewage which grew by 11.98 per cent and broadcasting which grew by 21.92 per cent.

The non oil sector performance was however constrained by Agriculture that grew by 1.3% compared to 3.00 per cent in Q1 2018 and 3.01 per cent in Q2 2017.

Q2 2018 GDP growth was also constrained by oil GDP with crude oil and gas production contracting by -3.95 per cent compared to 14.77 per cent in Q1 2018 and 3.53 per cent in Q2 2017.

Services GDP recorded its best performance in 9 quarters, growing by 2.12 per cent in Q2 2018 compared to -0.47 per cent in Q1 2018 and -0.85 per cent in Q2 2017.