During the late 19th and early 20th centuries, a group of wealthy and powerful American businessmen emerged, who were referred to as ‘Robber Barons.’ These individuals played a significant role in shaping the United States’ economic and industrial growth, but their methods became a subject of debate during that period.
The ‘Robber Barons’ of that period were accused of using unethical methods to monopolize industry and exploit workers. Some of the most famous ‘Robber Barons’ were John D. Rockefeller (Standard Oil), Andrew Carnegie (Carnegie Steel), J.P. Morgan (finance), and Cornelius Vanderbilt (shipping and railroads).
Other notable individuals identified as ‘Robber Barons’ were William A. Clark (copper), James Dunsmuir (coal, lumber), Marshall Field (retail), William Randolph Hearst (media mogul), Charles T. Hinde (railroads, water transport, shipping, hotels), Mark Hopkins Jr. (railroads), Elon Musk (technology, automotive industry), and John C. Osgood (coal mining, iron).
The ‘Robber Barons’ of that period used various tactics to gain control over industries and eliminate competition. These practices included creating trusts, exploiting workers, and eliminating competition. For example, Andrew Carnegie utilized “vertical integration,” where he owned every aspect of the steel business, from the mines to the factories and railroads that shipped his steel.
John D. Rockefeller equally founded Standard Oil Company in 1870 and dominated the oil industry until the end of the century. He even became the world’s richest man.
Nigeria, just like any society in the world, equally has its own ‘Robber Barons’ that are often referred to as ‘captains of industry,’ who of course are playing an important role in the growth of capitalism in Nigeria. These are individuals and groups whose actions have also led to the unequal distribution of wealth, with a small fraction of society controlling a significant portion of the nation’s riches.
For emphasis, we will focus on two Nigeria’s industrialists-Aliko Dangote and Abdul-Samad Rabiu who are currently engaging one another in ‘business war’ that has culminated into dirty ‘rat race’.
Both Aliko Dangote and Abdul-Samad Rabiu share certain similarities. They’re not only rich but are both billionaires who are well-connected both locally and internationally. The stupendous wealth of these two individuals has made both of them businessmen to be reckoned with in Africa and the rest of the world.
Today, Dangote is the richest man in Africa, occupying number 1 position with a net worth of $13.5 billion; while Abdul-Samad Rabiu occupies the number 4 position with $7.6 billion. Aside from the fact that they are both billionaires; they are both from Kano State and are scions of parents who were also reputable businessmen.
One would have assumed that both Aliko and Rabiu should be great friends based on the fact that they are both from the same State; this unfortunately is not so as both see one another as business rivals.
Dangote owns Dangote Industries Limited, while Rabiu is the founder of BUA Group. Their rivalry, according to investigation, spans decades and revolves around control over sugar and cements sectors, with a new front emerging in the oil industry as Rabiu is building his own refinery while Dangote refinery will soon begin operations.
Aliko Dangote and Abdul Samad Isyaku Rabiu, both founders and owners of companies that produce everything from edibles (rice, salt, sugar, vegetable oil) to building materials like cement, steel and petrochemical refineries.
Dangote Group is a household name in Nigeria and much of the West African sub-region, while BUA has its business holdings in Nigeria mainly but also exports to some other neighbouring countries.
Above everything else, they are also rivals bent on outsmarting one another for dominance in the vast and forever expanding marketplace in Nigeria and Africa at large.
Today, the business rivalry between the two Kano-State born billionaires has brought about accusation and counter-accusation. Dangote according to those in Rabiu’s camp has managed to attain successes he has achieved in business because of his connection to those in government.
Dangote was said to have managed his business interest stealthily nurturing it as governments changed hands from military to civilian rule. His big break came during the regime of President Olusegun Obasanjo when he found favour with Emmanuel Nnamdi Uba popularly known as Andy Uba, a former powerful and influential aide of OBJ as he is commonly called. Such leverage is said to have assisted Dangote to dominate and expand his hold on the commodities trade, crushing competitors in his path.
Rabiu And Dangote Under Buhari’s Administration
Rabiu was also said to have received favour from the last administration, to Dangote’s chagrin. That prompted Rabiu to go into the cement and sugar sector, taking market share and frontally challenging Dangote in the process.
The development was said to have prompted the duo of Dangote and John Coumantaros, a Greek/American owner of Flour Mills, to write the then Minister of Industry, Trade and Investment, Niyi Adebayo in January 2021 concerning BUA’s refinery in Bundu Free Trade Zone in Port Harcourt “of undermining the National Sugar Master Plan NSMP.”
However, in a counter charge written on February 11, 2021 to Adebayo, Rabiu took umbrage at the pair’s letter to the minister, describing Dangote as “a monopolist.” In his letter, he said: “in Nigeria and anywhere in the world, wherever Dangote is operating in any sector or business, he seeks to muscle out competition through any means necessary” and “this scenario is playing out again in this case.”
It is, however, strange that his current co-conspirator, John Coumantaros, a Greek/American national, was once a victim of Dangote’s. They are only just acting as friends in connivance because of their interest to push out competition and create a monopoly for themselves.”
Besides, Rabiu responded that the sugar refinery in Port Harcourt has presidential backing, insisting that Dangote and Coumantaros “were calling to question the authority of the President’s power and the diligence of the trade ministry.” Rabiu did not stop there, declaring that “we see this as an affront to the powers of the president and an attempt to undermine Nigeria and its institutions as well as edge out competition, to gain a monopoly that holds the country to ransom.’’
Rabiu was said to have taken his case further to the Presidential Villa, where he eventually got President Buhari to overturn Ms. Hadiza Bala Usman, who had earlier withdrawn the approval given to BUA for the sugar refinery.
Accusation And Counter-Accusation Between Dangote Industries And BUA Group
Dangote Cement is the largest cement producer in Nigeria, with a market share of over 60%, while BUA Cement is the second-largest producer, with a market share of around 20%
The rivalry between the two cement companies began in 2008 when BUA Cement entered the market and quickly established itself as a major competitor to Dangote Cement, gaining market share. In 2020, the rivalry between the two companies escalated when BUA Cement accused Dangote Cement of blocking access to its limestone quarry in Edo State. Dangote Cement denied the allegations, and the case is still ongoing in court.
Dangote’s sugar refinery is also the largest in Nigeria, with a market share of over 70%, while BUA’s sugar refinery follows closely with a market share of around 20%. The rivalry between their sugar businesses began in 2014 when BUA Sugar Refinery entered the market and quickly established itself as a major competitor to Dangote Sugar Refinery, gaining market share.
BUA has accused Dangote of using its political connections to stifle competition, while Dangote has also accused BUA of price-fixing and sending thugs to attack its sugar factory. BUA has strongly denied these allegations. The two companies are also in a dispute over mining rights in Obu-Okpella in Edo State, with BUA accusing Dangote of blocking access to the mines, which are a rich source of essential material in the manufacture of cement. Dangote, on the other hand, claims ownership of the mines. The case is still before the courts.
While the supremacy battle continues, both Dangote and Rabiu should understand that business rivalries have been a part of the corporate world for centuries but unhealthy competition can also blind individuals to the improvements they are making and make them feel unfulfilled. This unhealthy business rivalry between the two of them is negative and can have negative effect on not only their companies but Nigeria’s economy as a whole.
Both Dangote and Rabiu should learn from Coca-Cola and Pepsi. The rivalry between the two dates back to the late 1800s when the two brands immediately became competitors after their founding. Coke started in Georgia while Pepsi started in North Carolina, so their close proximity made them natural enemies. Over the years, the two brands have motivated each other to try new ideas and get closer to perfection. Rather than trying to outsmart one another, Dangote and Rabiu can improvise and try new ideas. With the present condition of Nigeria’s economy which has become a hydra-headed monster difficult to tame or control, we need more investors and cannot afford to have grasping monopolists.