A popular Management theory known as the Hersey-Blanchard model posits that different times and different circumstances call for different leadership style. This has become a global principle that applies to corporate organisations and in politics as well. It assumes that different situations call for different characteristics, and leaders vary their leadership styles in different circumstances. Clearly, in today’s global rough-and-tumble business environment, searching for that proverbial ‘pot of gold’ requires extraordinary people with extraordinary gifting, with a vision and passion beyond their own advancement. That’s why, where the government has failed the people, entrepreneurs of breathtaking scope provide the answers, boost performance and transform growth prospects.
It’s now beyond argument and simple theorising that Aliko Dangote, the Founder and Chairman of Dangote Group, provides that out-of-the-box thinking of an uncommon entrepreneur as a superb business success and the lessons learned from failure. The truth is that modern economy creates and spreads unprecedented challenges, opportunities and prosperity by drawing from the fountain of entrepreneurship and sound management resourcefulness. For what is known to all, Dangote is today the ‘poster boy’, not just in Nigeria and Africa but undeniably, one of the world’s wealthiest individuals and success stories. Like many successful stories, for Dangote, it began in small bits and pieces. In 1977, at a young age of 21, he felt it was the right time to be his own man and start his own business. He was reported to have approached his uncle, Alhaji Sanusi Abdulkadir Dantata for a loan. He generously gave him a facility of half a million naira(less than $3000 in today’s exchange rate). It was like the biblical story of the ‘ten talents”. He didn’t waste it. He invested it wisely. That’s how he became an importer in 1978. The rest, the say, is history, an inspiring story for anyone searching for a business philosophy. Today, his hands are in every pie, every business, in every sector of the economy. They call that, the ‘Midas touch’. That is why his businesses traverse areas such as agriculture, agro-processing, fertilizer product, sugar production, cement manufacturing, and now, refinery and petrochemical companies. Currently, one of his firms generates 1,300 MW of electricity for use within the Group’s business operations. It also sells power supply to the government of Senegal.
Always working for a higher purpose, and believing that there’s a lot that one person with vision can do. Perhaps the most inspiring yet of his business acumen is the construction of the $19billion Dangote Refinery, located at the Lekki Free Zone in Lagos, built by EPC Contractor, a world class Engineering firm from India. It was commissioned on May 22 by former President Muhammadu Buhari. Of the $19bn, the NNPCL has a minority stake of $2.76bn. This could transform Nigeria’s economy and alter for good, the course of refining petroleum products abroad. This will reduce the cost of importing petroleum products which the federal government has been spending so much, and claiming stupendous expenditures for subsidy, the removal recently that is causing chaos, pain and grounding economic activities across the country. A nationwide strike is imminent this week if the matter is not resolved by tomorrow. With an installed capacity to process 650,000 BPD, this is about 30 percent higher of Nigeria’s current 450,000 BPD estimated consumption need per day. This places Dangote Refinery as the largest single-train petroleum refiner in the world, and a major game changer in the country’s downstream market in Africa. It’s expected to supply petroleum products to 53 African countries that hitherto depend on other countries for their supply of petroleum products. This will reduce their imports by 65 percent. It’s also because the refinery, expected to come in full stream in early August, has the capacity to produce other range of petroleum products such as fuel, diesel, aviation fuel known as Jet A-1, and liquefied petroleum gas.
Again, this will significantly reduce the country’s dependence on imported refined petroleum products and conserve foreign exchange that had created a lot of drain on the foreign reserves. If this can make Nigeria a net exporter of petroleum products, it would have saved the economy a hefty N35 trn in fiscal expenditure over the next five years or on the average, N7trn per annum, according to estimates by the Central Bank of Nigeria (CBN). The refinery is expected to provide about 100,000 direct and indirect jobs, especially for the youths that form the bulk of the population. This is something the immediate past administration could not provide, despite a promise to lift at least 10 million Nigerians out of poverty annually. This is what no government in this dispensation has been able to do. The refinery will attract foreign investors to the oil and gas sector, which has experienced a lot of divestments in recent years. What is needed is the enabling environment for businesses to thrive. According to the Nigerian Economic Summit Group (NESG), when in full operation, the refinery is projected to add $21bn(about N9.7trn) revenue to the economy. For what is more heartwarming, the refinery will break the present monopoly of the Nigerian National Petroleum Company Limited (NNPCL), which has claimed over N17trn as subsidy on fuel in the last eight years alone. According to figures, before now, Nigeria sends about 547.5 million barrels of crude into the international market annually, with an agreement to supply 300,000 BPD to the Dangote Refinery. What this means is that, Dangote Refinery will provide the template for assessing the operating efficiency in petroleum refining business in Africa. This is a huge achievement. The big part of the job of being a business leader is also being a teacher. This is because success in business has a lot to do with picking the right strategy, and even when you think you have made the right choice, you have to manage, micro-manage – and drive – superior execution. Truth is, sometimes, you fail, even when you think you have chosen the right people to work for you. That’s the downside that every honest business leader will tell you. It’s part of the lessons from the top. It may surprise some people to know that Aliko Dangote has had his fair share of failed business ventures. But he remains unflappable, unfazed. Yes, that’s the stuff of a great business leader.
Among his failed business ventures were: Liberty Merchant Bank after he divested 60 percent of his shareholding in the bank. Also, not successful were Dangote Pasta, and Dangote tomato paste in which he was reported to have invested N4bn. According to Forbes (a global media company that focuses on business, investing entrepreneurship, etc), in 2014, Dangote lost $6bn due to the depreciation of the Naira, and falling stock prices. Not long ago, the irascible Yahaya Adoza Bello, Governor of Kogi state caused some tempest at Obajana Cement factory, owned by Dangote. The factory was shutdown for few days by some hoodlums, allegedly sent by the state government, causing huge financial losses. But Dangote has since recovered from that and moved on. That’s the best revenge for an enemy.
All things considered, this is one of the reasons why Dangote’s stars keep glowing despite the storms: His word has been everything. It’s wrapped up as his tool for success. According to Charles Wang, American businessman, philanthropist, and Co-founder, Computer Associates International Inc; it works this way, “to be a successful person and CEO, you must have integrity. Your word has to be worth everything you have got… you must have a moral compass”. Wang said that these things are essential for success in life because, in his words “people will get a sense of you, and if you are not true, you may not feel the effect today, this week, this month, this year, but it will get out.
People, he said, would surely get a “sense that you are sleazy, and your company will suffer”. If you ask me, Dangote has imbibed these business ethos, the challenges of business and the role a leader has to play to remain on top. He has had no crisis of confidence, no scandal associated with his character, or integrity. He has not been a reluctant role model. He’s humble, treats his employees and shareholders as real humans. He has made them feel valued. That’s why for the sixth consecutive year, Dangote brand has been adjudged as the Most Admired African Brand among top brands in the continent. And returns on investment are showing brightly like stars. That’s Dangote’s success story.