Revealed: Dangote Cement paid almost as much income tax as all banks in Nigeria combined for Q1 ’21
May 14, 2021914 views0 comments
Data from the Nigerian Exchange corporate filings show that Dangote’s Cement paid almost as much tax as all Nigerian banks combined for the first quarter of 2021.
According to available data, Dangote cement paid income tax totaling N40.39bn compared to a total of N42.26bn paid by the combination of all banks in Nigeria as income tax for the first quarter of this year.
While Dangote Cement’s income for the period was N332.65bn, gross earnings for all the banks was N1.23tn.
A number of analysists contend that Dangote Cement’s performance and huge income declaration is premised on the wave of tax waivers and incentives the company currently enjoys from the Federal Government asserting that such performance is to be expected from any company that gets such level of incentive from the government of the day.
Some also say that it is quite irresponsible to continue giving Dangote and all other beneficiaries tax waivers as it is killing the economy adding that such tax volume could help the nation’s economy a big deal.
Others opine that Dangote’s monopolistic tendencies and FG’s weak anti-competition stance in the cement subs-sector gives rise to such a record. The argue that if Dangote cement pays almost as much income tax, it means he is making almost the same amount of revenue as the banks combined and they ask if any other company in the cement sector makes close to such.
However, others say this is simply a case of opportunities and effort saying that an entrepreneur will always strife to own the largest share of the market and if possible monopolize it. It is the duty of a competitor to break such monopoly and this is where the likes of BUA and Lafarge comes in. Everyone must compete, they submit.
Recall that Dangote and BUA were some weeks back involved in a face-off over who gets to control the cement market with accusations thrown from each divide. It took the effort of Kano state governor, Abdullahi Ganduje to broker a truce between the two giants.
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