Dangote Urges Manufacturers to Utilize Coal as Gas Scarcity Bites

Aliko Dangote, President and Chief Executive of Nigeria's Dangote Group speaks during the final session of the World Economic Forum on Africa meeting in Cape Town June 6, 2008. REUTERS/Mike Hutchings (SOUTH AFRICA)

Aliko Dangote, president of Dangote Group and Africa’s richest man, wants manufacturers, especially large corporations and multinationals, to explore the option of using coal in the face of gas scarcity

“Some of the bigger industries should convert to coal,” Dangote said at a presidential dialogue organised by the Lagos Chamber of Commerce and Industry (LCCI) last Thursday. “Coal is cheap, and government has given a lot of incentives on coal exploration. Virtually everything is zero,” Dangote said.

Nigeria’s manufacturers devote 30 to 40% of their expenditure to alternative energy sources, according to the Manufacturers Association of Nigeria (MAN). They face gas scarcity, amid incessant power outages that inhibit production at factories. The gas price in Nigeria is also $5 higher than it is in the international market, thus raising the production costs of manufacturers.

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