Good People, I received the message which was delivered by Senator Ali Ndume which he noted: “The [yacht] deal has been signed and delivered, but not paid, and that’s what brought the inclusion of the amount (N5 billion) in the supplementary budget.” Yes, the House of Representatives rejected the federal government’s plan to buy a presidential yacht as part of  the supplementary budget, without knowing that the yacht is already somewhere in River Abuja cooling. But where there is no River Abuja, we have Ide Ovim which can provide a good abode.

The Senator noted that this special engine of productivity and innovation for Nigeria (lol) has already been delivered, and is in use in Nigeria, and should be paid for. But with the House rejecting the deal, they could be stressing the presidential office.

Let me say this: why are people complaining? Recall that with 26 days to go, the Senate approved Buhari’s N22.7tn extra-budgetary spending, with some of the funds already spent. Also, the biggest discovery which sank the Nigerian Naira came when it was revealed that the apex bank had borrowed on future crude oil sales. Largely, the American banking system revealed that the money we thought we have has been mortgaged for loans, which we did not know the nation took, along with crude oil which has been pre-sold before they’re piped. What happened after that revelation? The National Assembly did nothing!

Senator Ndume said it the way it is: the National Assembly does no legislative check and balances, and the executive is close to 100% certain that anything which goes there will be approved. That is why they can spend money, order a yacht, etc before seeking approval at the parliament. 

Nigeria needs a mindset shift, but it is not just for the politicians, I must note. Yes, the citizens who vote today, hoping to shout tomorrow, despite knowing the political players they are giving power to. 

Nigeria’s democracy is weakening: all executives know that they can spend and get approvals later from the legislatures because it is now a job, not a service. If you do not play along, you can suddenly have a court case opened for you.

The controversial presidential yatch has been met with public outrage as Nigerians have criticized the plan as a waste of money on luxuries considering the economic situation in the country.

President Tinubu had tabled a supplementary budget in the National Assembly for approval, with the planned purchase of the yacht listed under the Nigerian Navy’s proposed capital expenditure of $53 million.

Meanwhile, the presidency has claimed the item named ‘Presidential Yacht, as found in the 2023 Supplementary Appropriation Bill, is not for Tinubu’s personal use.

The presidency said the naval boat bears such a classification “because of the high-level security features.”

“What was named as presidential yacht in the budget is an operational Naval boat with specialised security gadgets suitable for high-profile operational inspection and not for the use of the President.”

Special Adviser to the President on Information and Strategy, Bayo Onanuga, said in a statement on Thursday.

Good People, I have read Dangote Group’s accusations against BUA Group and the high-voltage response from the BUA Group. In summary, Nigeria has a long way to go. From these public crusades, we can get one thing: it is not the best idea that wins in Nigeria in these traditional industries, but the idea with the best “connections”.

In other words, there is no way you can operate in these industries without selling your soul to politicians since they hold the powers to advance or cut you off. As these two men fight, they are sending the wrong messages to the world on some of these critical sectors: how fast a president or a minister could pick your call is what really matters, and not the ideas you are bringing to the market.

That must change, and necessarily must change. Yes, Adam Smith’s invisible hands where the free market drives business systems must work in Nigeria. From these accusations and counter-responses, it is evident that the state is still running the shows despite actors like Dangote and BUA founder.

Read Dangote’s position here (PDF) and follow up with BUA’s response here (PDF); a good business student has some nice documents for a final year seminar on business strategy in Nigeria!

Read Dangote’s position here (PDF) and follow up with BUA’s response here (PDF)

For several years, Aliko Dangote and Abdulsamad Rabiu, the founders of Dangote Group and BUA Group, have been involved in a highly publicized feud. The conflict primarily centered around their cement and sugar businesses, where Dangote Group and BUA Group were vying for market dominance in Nigeria.

The dispute began in 2017 when Dangote Group accused BUA of operating an unauthorized cement plant in Edo State, while BUA countered that Dangote was attempting to eliminate competition. Tensions escalated in 2020 when both companies planned to expand their cement plants in Sokoto State, with allegations of trade secrets theft and patent infringement.

The feud was characterized by mutual accusations and counter-accusations as they competed for a larger market share. It is 2023, and not much has changed.

On Friday, BUA released a letter in response to “a recent 7-page editorial” by Dangote, which leveled “blackmail” against BUA.

Read the full letter below:

“It’s with a profound sense of responsibility and a heavy heart that we address the claims and very cheap attempts at blackmail leveled against BUA by Aliko Dangote in a recent 7-page editorial following months of sponsored campaigns of calumny against us using third-party platforms. To put things in perspective, it’s imperative to revisit history—a history not of rivalry but of resilience; not of enmity, but of endurance.”

“In August 1991, a young BUA was doing its commodities trading business just as Nigeria faced a scarcity of sugar. As sugar was scarce, BUA was lucky to be one of the few with any stock for sale, and we stood prepared to supply the nation’s needs as best as our stock could. It was during this period Aliko Dangote approached us to purchase sugar. If only we knew he was setting the first of many traps in our business history. He gave us a Societe Generale Bank of Nigeria Cheque, which bounced upon presentation to the bank. Unbeknown to us, this was a ruse that would lead to a court-sanctioned freeze of our assets orchestrated by Dangote.”

“For three agonizing months, our accounts were garnisheed, warehouses shuttered, and our spirit tested. Yet, from the ashes of deceit, BUA survived. (see attached court order)”

“Fast forward a few years later, we decided that since we were making good progress in our various businesses, we should open a sugar refinery. We approached one Usman Dantata (now late), Aliko Dangote’s uncle, and leased his NPA waterfront land (4.5 hectares) at the Tincan Island port, ‘Polo House’. We took the land, signed an agreement with the consent of NPA, and paid all applicable dues. Dangote waited until our contractors and equipment had been mobilized to the site, then he went to former President Obasanjo. President Obasanjo had the land revoked entirely and gave the lease to Dangote. As a result, even his uncle lost the land. BUA was only given 24 hours to vacate the land.”

“It took us over a year to get another land. How?”

“Our survival as a business especially our Lagos sugar refinery is a legacy handed to us by a loving father who, seeing his son’s distress, did what only the noblest and kindest of hearts could do. With unwavering faith, our Chairman’s late father—may his soul rest in eternal peace—handed him the land on which our Lagos Sugar Refinery stands today. This land was the location of one of his thriving businesses with a warehouse, which he shut down and handed to us without asking for compensation. He just saw the pain of our chairman, Abdul Samad Rabiu, called him one day and handed him the papers to the land. His gesture was a beacon of hope in one of our darkest hours. And so, BUA survived again another Dangote trap. Today, we are now the largest Sugar refining concern in West Africa.”

“Our businesses continued to surge forward amid several other attempts, too many to mention now. In 2007, under President Yar’Adua’s visionary mandate to broaden Nigeria’s cement industry and break the monopoly in the sector, BUA was among the six companies selected and granted licenses. Our approach was unconventional but effective: we introduced a floating terminal – ‘BUA CEMENT I’, which is a cement factory built into a large ship, as a stopgap while we were working on securing our land-based cement plant.”

“What followed, however, was another act intended to drive us out of business. Our application to dock the floating terminal in Lagos met with resistance. We then decided to berth the ship at the terminal we owned in Port Harcourt. Despite this, we faced considerable pushback and it took the decisive intervention of late President Yar Adua, who directed that the Minister of Transport and the Chairman of NPA honor our right to contribute to the nation’s growth.”

“But the hurdles didn’t end there. The drama intensified when Orwell Brown, a Deputy Comptroller General who was also an older brother to a Dangote Staff, launched a sudden strike, attempting to deport our vessel’s entire expatriate crew. It was a Friday that is forever seared into our memory—the shock of our expatriates rounded up, their confusion as they were shepherded onto a Dangote-funded one-way local flight from Port Harcourt to Lagos en-route Asia via Emirates.”

“Upon hearing of what had happened, we reached out to Tanimu Yakubu, the then Chief Economic Adviser, who acted with the urgency that the situation demanded. His call to the CG of Immigration was a lifeline, and our expatriate team was brought back from the Emirates aircraft and not deported. The aftermath was swift action by the President, who ensured that such a misuse of power would not go unchecked. DCG Brown, caught in a tangle of undue influence, admitted what he did to the Minister, and he was later dismissed.”

“Through all these tribulations, BUA’s resolve has only strengthened. These events narrate not just the trials of a company but the resolve of its people, bound together by a shared vision and an unwavering belief in justice and fairness.”

“We also know what transpired whilst we were building our Edo Cement Plant. Everyone knows the issues we faced. The plant we are operating in Edo would not have been operating and contributing immensely to the economy, if not for the former President Buhari who had to intervene by calling Governor Obaseki that no staff must lose their jobs and the plant must not be shut down, no matter what happens.”

“We cannot say more as the matter is currently sub-judice – and is at the Supreme Court. During that time, Edwin Devakumar and Sunday Esan (two long-time and current staff of Dangote) were caught in leaked emails, whose content were not limited to sending thugs to foment trouble, close our factory as well as pushing bad press against us (See emails attached).”

“Same thing happened again with our Port Harcourt sugar refinery – the only sugar refinery in Nigeria that is outside Lagos. Dangote utilized every means possible to ensure the refinery did not take off and we raised the alarm. At some point, the terminal was taken away from us and was to have been given to someone else at the behest of Dangote. There had to be a presidential intervention again for NPA to do the right thing. Yet, we survived.”

“For over 32 years, we have been cast as the antagonists in a narrative woven with malice. We have not just survived; we have thrived, expanding our operations and contributing to Nigeria’s economy without resorting to subterfuge.”

“To Mr. Dangote and the Dangote Group, we say: Let us build, not belittle. Let us cultivate, not conquer. While we may share the marketplace, we need not share malice. We have nothing to do with your self-inflicted issues. Blame no one but yourself.”

“In closing, we at BUA remain committed to our ethos of innovation, integrity, and inclusiveness. Our history is not one of being handed anything on a silver platter. We will continue to serve our beloved country and its people with the diligence and honor they deserve. Our past, present, and future activities are rooted in the prosperity of Nigeria, undeterred by the winds of unfounded criticism. We remain focused on building and developing Nigeria.”