Dangote and his companies has had its fair share of criticisms from competitors and consumers over the years stemming from its strong hold on areas where they have business interest. One of such is its continual criticism of its “anti-market activities” in terms of its pricing policy for Sugar. Dangote Sugar made a strong response on Page 2 of the Guardian Newspaper for Friday January 11, 2013.
Whilst their response must have satisfied their supporters and shareholders and perhaps drawn further criticism from their competitors, I am more interested in a piece of information the company brought to the attention of its readers. In a detailed breakdown in defence of its policies termed “THE FACTS”, bullet point 5 was particularly interesting. It read as follows;
In year 2012, our unaudited financials shows that we recorded a net profit of about N11billion while we paid the Federal Government a total of N20.25billion which includes: VAT N8.2billion, income tax N5.4billion, duty/other charges N5.8billion and withholding tax of over N800million. In effect, the Federal Government’s income is almost twice our profit”.
So there you have it, the Government makes a whopping N20.25billion from Dangote Sugar’s operations alone. Whilst this assertion is resounding, it is important to note that the VAT of N8.2billion and Withholding Tax of N800million (totaling N9billion) was paid by consumers and other companies who supply goods and services to Dangote. ?Dangote simply acted as an agent and collected the revenue on Government’s behalf. However, the N11.2billion in taxes and duties came out of the revenue of the company which by the way is still astonishing!!!!