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What You Need to Know About the Feud Between Dangote and BUA Group

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Dangote Industries Limited (DIL) and BUA Group, two of Nigeria’s leading conglomerates, have reignited their 32-year-old war for market control

The feud began in 2017 when Dangote Group accused BUA of operating an unauthorized cement plant in Edo State, while BUA countered that Dangote was trying to monopolize the cement industry

The latest allegations from Dangote Group accuse BUA of orchestrating a malicious campaign in the media by disguising as a concerned citizen

BUA Group has responded to these allegations by reflecting on the group’s agelong history of hostilities, difficulties, and alleged hindrances from the Dangote Group
Here are some key points about the feud between Dangote and BUA Group:
  • Dangote and BUA Group have a long history of rivalry between them, as both companies had in the past been involved in running battles for market control in different sectors of the economy ranging from sugar, salt, cement, and fertilizer, among others

 

  • The chairmen of the two conglomerates – Abdul Samad Rabiu (BUA Group) and Aliko Dangote (DIL) – are from influential families in Kano State and are involved in the fierce control of the Nigerian economy
  • BUA Group has accused Dangote of trying to stifle its major rival and being scared of Abdulsamad Rabiu, BUA Group
  • Dangote Group has accused BUA of orchestrating a malicious campaign in the media by disguising as a concerned citizen
  • BUA Group has responded to these allegations by reflecting on the group’s agelong history of hostilities, difficulties, and alleged hindrances from the Dangote Group
  • BUA Group has reaffirmed its commitment to innovation, integrity, and inclusiveness, saying the company’s history is marked by hard work, not entitlement
  • Shehu Sani, a Nigerian politician, has reacted to the feud, calling on the two companies to resolve their differences amicably.

Despite the numerous travails in the hands of Dangote, BUA Group has restated its commitment to its corporate ethos of innovation, integrity, and inclusiveness

Allegations

Dangote Group has accused BUA Group of orchestrating a malicious campaign in the media by disguising as a concerned citizen.
Dangote Cement Plc, Africa’s largest cement producer, has been made aware of several misleading media publications, one of which was captioned ‘A Cry for Help: Wanton Abuse of Power by a Serving Minister Geared at Sabotaging Operations of BUA Cement’; wherein BUA International Limited (BUA) alleged an abuse of power by the Federal Ministry of Mines and Steel Development for the benefit of DCP, and made other unwarranted and unfounded claims.
Dangote Cement Plc described the allegations as “unwarranted and unfounded claims” and stated that the issues raised by its competitor “are subject of litigation by several parties”

BUA Response

In response to Dangote’s allegations, BUA Group issued a comprehensive statement on Friday, November 3, 2023, reflecting on the group’s agelong history of hostilities, difficulties, and alleged hindrances from the Dangote Group.
BUA Group reaffirmed its commitment to innovation, integrity, and inclusiveness, saying the company’s history is marked by hard work, not entitlement.
BUA Group expressed dismay at what it perceives as baseless blackmail and described Dangote’s allegations as cheap attempts at blackmail leveled against BUA by Aliko Dangote in a recent 7-page editorial following months of sponsored campaigns of calumny against them using third-party platforms.
BUA Group also stated that the antecedents of Dangote Plc in trying to outmuscle competition are not in doubt, and various cases abound within and outside the cement industry.
BUA Group asked why Dangote, an international company which is also listed on the Nigerian Stock Exchange, is so averse to letting the rule of law and judicial process take its course.
The court has maintained that Status Quo be maintained, which includes BUA’s current ownership of their mines in Edo State, but the management of Dangote Group is still seeking to out-muscle competition through backdoor means rather than let the court decide

Agelong History

According to the search results, the agelong history of hostilities between BUA Group and Dangote Group dates back to the early 90s and has been characterized by court battles, land disputes, alleged sabotage attempts, and governmental interventions. Here are some specific incidents that have contributed to the feud:

  • In the early 90s, Dangote Group allegedly issued a bounced cheque to BUA Group, which led to a court-sanctioned freeze of BUA’s assets orchestrated by Dangote
  • In 2017, Dangote Group accused BUA of operating an unauthorized cement plant in Edo State, while BUA countered that Dangote was trying to monopolize the cement industry
  • Dangote Group has been accused of orchestrating a malicious campaign in the media by disguising as a concerned citizen
  • BUA Group has accused Dangote of trying to stifle its major rival and being scared of Abdulsamad Rabiu, BUA Group
  • The two companies have been involved in running battles for market control in different sectors of the economy ranging from sugar, salt, cement, and fertilizer, among others

Despite the numerous challenges and hostilities, BUA Group has survived and thrived, expanding its operations and contributing to Nigeria’s economy without resorting to unethical practices

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The Impact of the Feud  on the Cement Industry

The feud between Dangote Group and BUA Group has had some impact on the cement industry in Nigeria. Here are some of the effects:

  • The feud has led to a lingering crisis that has affected the shares of Dangote Cement on the floor of the Nigerian Stock Exchange (NSE)
  • The Nigerian government last year allowed only the cement arms of Dangote Group and BUA Group as well as one other unidentified firm from its sugar industry to export sugar outside the country
  • The feud has led to accusations and counter-accusations between the two companies, with BUA Group accusing Dangote of trying to force it to relinquish mining rights in a limestone field as part of a bid to monopolize the cement market
  • The feud has also led to allegations of back-stabbing and attempts to outmuscle competition, with both companies involved in running battles for market control in different sectors of the economy ranging from sugar, salt, cement, and fertilizer, among others
  • The feud has also led to court battles, land disputes, alleged sabotage attempts, and governmental interventions

Despite the challenges posed by the feud, the cement industry in Nigeria has continued to grow, with the country becoming a cement exporter from being a net importer

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