Behind every success story, there is always that struggle which is not so known to many. Such is the case of some billionaires like Aliko Dangote, who had records of failed businesses before finally becoming Africa’s number one billionaire....READ THE FULL ARTICLE HERE ▶▶
Dangote shared personal experience during his keynote speech at the 2024 Manufacturers Association of Nigeria (MAN) summit in Abuja, according to an Independent.ng report. He claimed his company lost billions of naira in investment due to his entry into the textile sector.
Dangote talked about his challenges in the rapidly expanding Nigerian textile industry and why his two plants had to close.
Following the 1960s textile boom, the chairman of the Dangote Group said his company invested billions of naira in the sector.
However, the two plants were shut down because the government did not protect policy decisions.
Dangote stated that he was forced to sell Liberty Merchant Bank for N1.2 billion to cover the pensions and gratuities owed to Nigeria’s textile mill employees.
“When textile businesses were booming, we set up our textile mills called Dangote General Textile Mills in Kano. Then, we massively invested billions at that time.
“We also went and bought the foreign shareholder of Nigeria Textile Mill, which was a textile mill set up for the Western Region by Chief Obafemi Awolowo. That was 1960. At the end of the day, there was no government protection. We had to shut both the two factories.
The billionaire claimed that the Nigeria Textile Mill presented the most obstacle because most of its employees had been there for 25 to 30 years, making it challenging to pay their pensions and gratuities.
Dangote said:
“Luckily for us, somebody now came and said he wanted to buy our bank, Liberty Merchant Bank. By the time we sold Liberty, I cashed out N1.2 billion. After cashing out N1.2 billion, the industry consumed N985 million to pay pensions and gratuities just to get out of the business. That is how we now got out of the business. We burnt our fingers.
Dangote claimed that even when former President Obasanjo then encouraged him to make investments in the textile sector, he had to decline the suggestion because of his prior experiences.
Closed financial institutions
List of Closed Financial Institutions under Liquidation
Abacus Merchant Bank
ABC Merchant Bank
Allied Bank of Nigeria
Alpha Merchant Bank
Amicable Bank of Nig.
Century Merchant Bank
Commerce Bank
Commercial Trust Bank
Continental Merchant Bank
Coop & Commerce Bank
Credite Bank
Crown Merchant Bank
Financial Merchant Bank
Great Merchant Bank
Group Merchant Bank
Highland Bank of Nig
Icon Merchant Bankers
Ivory Merchant Bank
Kapital Merchant Bank
Lobi Bank of Nigeria
Mercantile Bank of Nig.
Merchant Bank of Africa
Nigeria Merchant Bank
North South Bank
Pan African Bank
Peak Merchant Bank
Pinnacle Commercial Bank
Premier Commercial Bank
Prime Merchant Bank
Progress Bank of Nig.
Republic Bank
Rims Merchant Bank
Royal Merchant Bank
United Commercial Bank
Victory Merchant Bank
African Express Bank
Allstates Trust Bank
Assurance Bank
City Express Bank
Eagle Bank Limited
Fortune International Bank
Gulf Bank
Hallmark Bank
Lead bank
Liberty Bank
Metropolitan Bank
Trade Bank
African International Bank
Bank PHB
Spring Bank
Afri Bank
Skye Bank
Triumph Bank
Dangote loses Africa’s richest spot
Earlier, Legit.ng reported that Nigerian billionaire Aliko Dangote lost his title as the wealthiest man for the second time in a month.
South Africa’s Johann Rupert claimed the top spot from the Nigerian industrialist after Dangote’s wealth declined due to a drop in the shares of his company, Dangote Cement.
