Dangote seemingly became involved in the political arena in the early 2000s, especially during Olusegun Obasanjo’s second presidential campaign in 2003. This involvement stemmed from Obasanjo’s search for new donors following his fallout with then-vice president, Atiku Abubakar. As a result, Dangote’s presence in the political landscape grew substantially. Over time, his relationship with the People’s Democratic Party (PDP) strengthened, marking him as a key ally. This partnership was particularly evident during Goodluck Jonathan’s administration. In 2011, President Jonathan publicly stated that Nigeria would begin exporting cement, largely based on Dangote’s influence.  

Prior to Dangote’s involvement in the cement industry, Nigeria was one of Africa’s major cement importers, but Nigeria has now evolved into one of the top two exporters of cement and clinker. Dangote was pivotal in this transition by heavily investing in local production. He set up massive plants, like the one in Obajana, Kogi State, which is the largest cement plant in Sub-Saharan Africa, with a 16.5 million metric ton yearly capacity. By 2018, Nigeria had more cement than needed. This move boosted the economy, created jobs, and even inspired other companies like Lafarge Africa and BUA Cement to jump on the export trend. Given that Dangote was the leading cement manufacturer, this growth highlights the significant role he played in both business and politics.  

During the Muhammadu Buhari administration, an All Progressives Congress-led government, one might have expected Dangote’s relationship with the government to weaken due to his longstanding ties to the rival PDP. However, this was not the case. Within a year of Buhari’s presidency, on 4 August 2015, a delegation led by former vice president, Yemi Osinbajo, travelled to Zambia to commission a Dangote Cement plant. Dangote was hard at work cementing political alliances. 

In more recent times, the Dangote Petroleum Refinery located at the Lekki Freezone was also commissioned by the Buhari administration in May 2023. It was lauded as a significant project, mainly for its potential to lessen Nigeria’s dependence on imported refined petroleum products—ensuring that Nigeria can meet domestic needs and potentially export the surplus. 

Government policies, contracts and tax incentives have been crucial to Dangote’s success. During Obasanjo’s administration, Dangote enjoyed exclusive import rights to cement, sugar and rice, the income tax breaks and deductibles in the Jonathan era and the road infrastructure tax credit scheme under Buhari. Additionally, the Dangote Group benefitted from favourable import substitution policies that prioritize locally produced goods over imported ones in order to promote economic development and promote a balance of trade. These policies, alongside backward integration in the cement industry, have given Dangote a competitive edge.  

Backward integration is a business strategy where a company expands its control over the supply chain by acquiring or establishing operations that provide the raw materials or components needed for its core business. Instead of relying on third-party suppliers, the company owns and manages the production of critical inputs. Thus, improving efficiency, lowering costs, and gaining more control over production timelines and quality. Dangote Cement implemented this backward integration strategy by making clinker, a major raw material for cement production, which the company uses and sells. Furthermore, the proximity of large limestone deposits to both the Obajana and Ibese plants help Dangote Cement reduce transportation and raw material procurement costs. 

Dangote’s access to capital, both from Nigerian and international banks, has also been key, with figures like Godwin Emefiele, the former governor of the Central Bank of Nigeria (CBN), playing a significant role in financing projects such as the Dangote Petroleum Refinery. Dangote’s strategic alliances with government bodies, granting him access to land and infrastructure, combined with his companies’ positive impact on the Nigerian economy, have been central to his continued success.