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Home DAHIRU MANGAL’S BUSINESS DIVERSIFICATION DRIVE AND THE FORESEEABLE BENEFITS ON THE NIGERIAN...

DAHIRU MANGAL’S BUSINESS DIVERSIFICATION DRIVE AND THE FORESEEABLE BENEFITS ON THE NIGERIAN ECONOMY — Maiwada Dammallam

It’s no longer news that Katsina born business guru, Alhaji Dahiru Barau Mangal, has signed an agreement with a Chinese firm, Sinoma International Engineering Co., Ltd for the construction of a 3 million metric tons per year Cement plant alongside a 50 Megawatts Captive Power Plant in Moba, Kogi State. This giant project is expected to be completed in early 2024.

Coming at a time when Nigeria is exploring all avenues to diversify its economy and cure itself from over reliance on oil to regain its natural position as the giant of Africa in line with the economic agenda of the Buhari administration, this is a shrewd and patriotic investment initiative worthy of public applause and support. To Katsina state, this is pushing the state up to rub shoulders with the giants dominating Nigeria’s commercial space. With another equally impressive initiative, the 300,000 metric tons N15 billion paddy rice processing company Mangal is building in Katsina which is almost completed and expected to create 10,000 jobs and with a multiplier benefit of providing produce off-taking platforms envisaged to increase the incomes of smallholder farmers in Katsina and neighboring states, it’s fair to say the North is set to reclaim its position in commerce and agriculture.

With Max Air, another of Mangal’s diversification drive, already among the big league in the aviation industry; operating domestic, regional and international flight network and so far, the only airline operating on the increasingly profitable Katsina/Abuja route with regular 3-flights a week schedule, the shrewdness of Mangal’s business acumen cannot be overemphasized, neither is his Midas touch.

To digress a bit, Max Air could be said to be as critical to the economic development of Nigeria (the North and Katsina state in particular) today as the trans-Sahara trade routes that sustained the visibility and viability of west Africa on the ancient map of global trades. Max Air is, in practical sense, the key unlocking the economic potentials of Katsina and neighboring states by providing the states with necessary linkage with potential investors from within and without. Add this to Mangal’s large road transport business network covering the West African sub-region, translating his business acumen and the foreseeable benefits of the upcoming Kogi cement factory into economic benefits for millions of Nigerians will be made a lot easier.

Given the choice of Kogi state as the venue of Mangal’s giant cement factory instead of Katsina is a business decision that need to be explain especially with tongues already wagging. The choice of Kogi state is purely based on economic logics. Kogi state is rich in limestone, the major raw material for producing cement. It’s reasonable then, that sentiments are jettisoned for economic reality especially for a $600m (roughly N300bn) investment which plan shouldn’t come with a room for error. The choice of Kogi state by Mangal is strategic and meant to reduce cost of production and enhance the sustainability of the project as to compete favorably with other giants in the sector like Dangote BUA.

Still on the choice of Kogi state, energy crisis is the number problem to tackle when venturing into this sector. Access to energy is a critical factor. With a new industrial gas pipeline being built by the Federal Government to link up Kogi state and a captive power plant also being constructed in the state, Mangal will leverage these to hike competitive advantage.

And why the choice of a Chinese company, Sinoma International Engineering Ltd, as partners? As explained earlier, $600m is no small amount to play with. This is something in the region of N300 billion. To invest such a huge sum in any business one need to be certain of the safety, viability ad sustainability of the investment and this is best done by relying on the pedigree, expertise and reliability of intended partners. This is where the choice of Sinoma International Engineering is not only relevant but brilliant.

Sinoma International Engineering Co., Ltd is a China-based company, principally engaged in engineering construction, including cement engineering contracting business and diversified engineering. The Company is also engaged in equipment manufacturing, environmental protection and production operation management business. In summary, Sinoma International Engineering, far from the dubious Chinese company many may be tempted to think it is, is a one-stop shop in engineering construction business with verifiable global reputation.

Sinoma International Engineering is no stranger in Nigeria. It’s global giant with reputation covering the four corners of planet earth. The company has been partnering reputable businesses in Nigeria to help grow and expand Nigeria’s economy. It’s part of the success story of Alhaji Aliko Dangote, Chairman Dangote Group. Actually not long ago Dangote signed a US$4.34b business deal with Sinoma International Engineering for the construction of 11 new cement plants in 10 African countries and Nepal in Asia. Both Dangote and Mangal could be said to be leveraging on the expertise of Sinoma o exploit the economic possibilities of the new African Continental Free Trade Agreement (AfCFTA) that came into force on January 1, 2021 to enhance the visibility of Nigeria on the global economic map.

Mangal’s demonstrable commitment to growing the national economy and demonstrable confidence in the promise of Nigeria is not only praiseworthy but indeed worthy of emulation by other wealthy citizens not only in Katsina state but the entire northern region. The north has no business with poverty as enforced by perennial unemployment and the attendant consequences of youth restiveness. Initiatives like this are the illusive answers the North has been searching for. And, need I remind that with the global economy changing at a dizzying speed, the need for the North to adapt and keep pace cannot be overemphasized. Only by adopting and operating the 21st century business template could we belong to the 21st century crowd.

KATSINA CITY NEWShttps://www.katsinacitynews.com
Danjuma Katsina, Dan Jarida, Manazarci, Marubuci, Mamallakin Jaridun KATSINA CITY NEWS, JARIDAR TASKAR LABARAI, THE LINKS NEWS, a karkashin Kamfanin MATASA MEDIA LINKS NIGERIAN LTD

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