Dangote Industries Limited (DIL) has issued a strong warning, advising against any unwarranted connections to economic sabotage.
This warning came in response to allegations insinuating an ongoing inquiry into purportedly illicit foreign currency transactions and money laundering involving the company.
In an official communication, DIL categorically described these accusations as “unsubstantiated and a mere reiteration of a previously circulated report, fueled by ulterior motives, from a rival who posed as a concerned Nigerian back in 2016.”
The statement, endorsed by DIL’s management, reaffirmed the company’s dedication to strict protocols when securing foreign currency for its numerous projects. DIL emphasized that all foreign currency was sourced exclusively from the Interbank Foreign Exchange market and in full compliance with authorizations from the Central Bank of Nigeria (CBN). As an example, DIL clarified that they consistently established “Letters of Credit” for the construction of their various operational plants and the acquisition of heavy equipment and spare parts essential for the Dangote Cement facilities.
“The terms and conditions governing payment transactions were clearly defined in the Letters of Credit instruments, aligning with the Universal Customs & Practice for Documentary Credit – UCP 600 from the International Chamber of Commerce. It is essential to note that payments made to Sinoma International Engineering Co Ltd (a Chinese Government-owned company), the primary contractor responsible for over 75 percent of these expenses, were executed upon the presentation of all relevant shipping documents. Not a single payment was funneled through any Dubai-based company owned by us,” the statement underscored.
DIL elaborated on its foreign currency operations as follows: “All foreign currency purchases related to our African Projects expansion were diligently and transparently allocated for their intended purposes. These projects are openly visible for all to witness.
Notably, some of these projects were inaugurated by prominent Nigerian government officials, alongside Chief Executives of various banks, Industry Leaders, and Presidents of host countries, accompanied by their Senior Government Officials.”
The company further emphasized that the capital investments in its expansion projects across African countries were entirely legitimate, contributing to a total repatriation of $576 million to Nigeria, thereby bolstering foreign currency earnings and stabilizing the FX market. DIL affirmed its commitment to funding the construction of its various plants through Interbank FX Market channels, following CBN directives and submitting periodic progress reports to the banks for further relay to the Central Bank of Nigeria.
“In accordance with the host countries’ regulations, most local vendors, contractors, and suppliers necessitate payment to be executed locally for regulatory and tax considerations. Consequently, funds designated for pre-operational expenses and the procurement of other local construction materials are transferred to our Project Accounts in the host countries to facilitate payments to vendors, all in compliance with the local regulations.
These transactions have been meticulously documented and approved, enabling the repatriation of foreign currency into Nigeria.
Over the years, these payments for our various African Projects have been subject to scrutiny, undergoing audits by our appointed auditors, Deloitte & Touche and KPMG, during their statutory audits,” the DIL statement confirmed.
Furthermore, the statement pointed out that “specifically, the CBN granted us approvals between 2010 and 2018, amounting to $3.755 billion, for the purchase of foreign currency from the Interbank market to fund our various African Projects, of which we have utilized only 47.70 percent, equivalent to N1.791 billion, out of the granted approvals.”