By Paul Joseph
Aliko Dangote, President of Dangote Group, has described his investment in Nigeria’s textile industry as the biggest mistake of his business life, revealing that the venture involved substantial capital but was eventually undermined by challenges in the manufacturing sector.
Dangote made the disclosure during an interview with ARISE News’ Ojy Okpe, where he reflected on some of the major business ventures he pursued before building his expansive industrial empire.
The billionaire businessman said his experience in the textile industry was particularly challenging despite the huge resources committed to the sector.
He disclosed that his textile investments included the establishment of Dangote General Textile Mills in Kano and the acquisition of the foreign shareholder in Nigeria Textile Mill.
According to Dangote, the investment eventually became unsustainable as the industry struggled with several challenges, including inadequate protection for local manufacturers and competition from imported textiles.
He said the difficulties confronting local producers made it increasingly difficult for textile businesses to remain viable despite the enormous investments involved.
Following his experience in the sector, Dangote expanded his focus to other large-scale industrial ventures, particularly in cement, fertiliser and petroleum refining.
One of his most prominent investments is the Dangote Refinery, which has significantly increased Nigeria’s domestic refining capacity and represents a major expansion of the group’s industrial interests.
The refinery is also currently at the centre of the group’s public offer on the Nigerian Exchange as Dangote seeks to broaden public participation in the business.
Dangote’s account of his textile investment underscores the difficulties that have confronted Nigeria’s manufacturing sector and the risks associated with committing large-scale capital to local industries.
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