Byline: By BizWatch Nigeria Reporter
Key Points
- Aliko Dangote says persistent foreign exchange volatility forced his exit from Nigeria’s flour and textile sectors.
- The billionaire industrialist disclosed that rising operational costs and difficulty accessing FX made the businesses unsustainable.
- Dangote Group is now concentrating on export-driven sectors including cement, fertiliser, petrochemicals, and refining.
- Dangote also revealed he abandoned plans to acquire Arsenal Football Club to focus on completing the Dangote Refinery project.
Main Story
President of the Dangote Group, Aliko Dangote, has disclosed that severe foreign exchange challenges and mounting operational pressures forced him to exit Nigeria’s flour and textile industries, marking a major strategic shift in the evolution of one of Africa’s largest conglomerates.
Dangote made the disclosure during an interview with Nicolai Tangen, released on YouTube on May 14, 2026, where he reflected on the business decisions that reshaped the Dangote Group over the years.
According to the billionaire businessman, the persistent difficulty in accessing foreign exchange for industrial production significantly weakened the viability of operating in the flour and textile sectors. He explained that manufacturers dependent on imported machinery, raw materials, and industrial inputs have continued to face pressure from currency instability and rising production costs.
Nigeria’s manufacturing sector has struggled in recent years due to FX scarcity, high inflation, rising energy costs, and supply chain disruptions. Several manufacturers have either scaled down operations or exited specific business lines as the cost of importing production materials surged following the depreciation of the naira.
Dangote stated that the experience reinforced his decision to focus on industries capable of generating stronger export earnings and improving long-term dollar liquidity for the group.
Today, the Dangote Group’s core investments are concentrated in cement, fertiliser, petrochemicals, and oil refining. These sectors are expected to strengthen Nigeria’s export capacity while helping improve foreign exchange inflows into the economy.
The billionaire industrialist disclosed that the group is already performing strongly in exports and plans to pay future dividends in dollars across major business divisions, including the refinery, petrochemical, fertiliser, and cement businesses.
Dangote also reflected on the sacrifices made while building his industrial empire. He revealed that he sold his private properties in the United States and the United Kingdom to channel more resources into his industrial projects.
He further disclosed that he abandoned his long-standing ambition of acquiring English Premier League club Arsenal F.C., despite seriously considering the purchase when the club was valued at around $2 billion.
According to him, committing such capital to football ownership would have distracted from the completion of the multibillion-dollar Dangote Refinery and other strategic investments.
The Dangote Refinery, located in Lagos, is regarded as one of Africa’s largest single-train refineries and is expected to significantly reduce Nigeria’s dependence on imported refined petroleum products.
What’s Being Said
Dangote said the realities of Nigeria’s FX market made continued investment in flour and textile manufacturing increasingly difficult.
He noted that the group’s future strategy is now focused on export-oriented industries capable of generating stable foreign currency earnings.
The billionaire businessman also maintained that completing the refinery project represented a more impactful contribution to Nigeria’s economy than pursuing ownership of a football club.
What’s Next
Industry analysts expect large Nigerian manufacturers to continue restructuring operations as FX volatility and production costs remain major concerns for the private sector.
Economic stakeholders are also watching the performance of the Dangote Refinery and other export-focused projects as the Federal Government intensifies efforts to stabilise the naira and boost foreign exchange earnings.
The manufacturing sector is expected to remain under pressure unless access to FX improves and broader macroeconomic conditions stabilise.
Bottom Line
Dangote’s exit from the flour and textile industries highlights the growing pressure Nigeria’s foreign exchange crisis continues to place on manufacturers. While the Dangote Group is repositioning toward export-driven sectors with stronger dollar earnings, the development also underscores the broader structural challenges facing industrial production in Africa’s largest economy.
