Abdul Samad Rabiu And Aliko Dangote: What You Didn’t Know About Their Rivalry

In what has become known as the clash of the titans, Aliko Dangote and Abdul Samad Rabiu are bent on pushing each other to ensure that they become the very best version of their business selves.

It is worthy to note that Dangote and Rabiu are going toe to toe in terms of the goods and services they offer. Dangote is the owner of Dangote Group which boasts of interests in; cement, sugar and flour whereas Samad Rabiu is the owner of BUA group which also boasts of interests in the same aforementioned commodities; cement, sugar and flour.

Aliko Dangote, the wealthiest man in Africa has over the years, faced stiff competition from Abdul Samad Rabiu to the extent that Rabiu has also diversified into petrochemicals, a move which was earlier made by the latter. Aliko Dangote’s highly anticipated $12bn refinery, will produce 650,000 bpd and is expected to begin operations in 2021. Business pundits have long pontificated that there seems to be bad blood between the two men.

Beginning Of The Rivalry

The collision in business interests between the two heavy weights stems from traditions pre-dating their business careers. Dangote comes from a celebrated lineage of wealthy merchants from Kano. Rabiu also has a heritage in commodities. Rabiu’s late father, Isyaku Rabiu was a revered merchant and industrialist in Kano State in the 1970’s and 80’s.

Years after Dangote made a name for himself as a business tycoon, the enterprising Rabiu made it a point to challenge Dangote and founded the BUA International.

The Battle For Supremacy

Dangote Group stands out as a leading pan-African brand with interests in commodities, energy and logistics. Its companies have over 30,000 employees and his group represents nearly a quarter of the Nigerian Stock Exchange’s N28 trillion ($75bn) value. Its crown jewel, Dangote Cement, single-handedly boasts a market cap of $14bn and controls 60% of the market.

On the other hand, BUA Group, which also has interests in cement production, sugar refining, real estate, logistics and port operation is also bent on making a huge statement in this intriguing battle for financial supremacy. Its largest operation and only publicly listed company, BUA Cement, which came to market earlier this year, has a $3bn market capitalisation and 17.6% market share.

Though BUA subsidiaries have often trailed Dangote’s, the Rabiu-led group’s recognition in the market has come by deploying strategy and doggedness to break through tough market entry barriers and assume leadership positions.

The Battle Continues

When BUA Cement reduced prices by about $20/tonne to attract customers, Dangote responded to the potential business threat by beating down the prices of their cement.

It is even reported that Rabiu allegedly wrote a petition to President Muhammadu Buhari, detailing how policies of successive governments have over the last two decades, “unduly” favored Dangote.

See You In Court

Both companies are presently involved in a legal tussle over mining rights in Obu-Okpella in Edo State.

This stems from the fact that BUA has its highest-producing cement plant in the area and has accused Dangote of blocking access to the mines. Dangote, has on the other hand, claimed ownership of the mines.

Net Worth

Forbes has estimated the net worth of Dangote and Rabiu at $10.9 billion and $6.1 billion respectively.

Bad Blood? Not Really

Outside of business, it appears that the two business moguls are good friends. In 2018, Rabiu was invited to the wedding of Dangote’s daughter, an invitation he honored.

Earlier in the year, Dangote visited Rabiu at his BUA headquarters, on Victoria Island, Lagos.

Source: abtc.ng