Industry stakeholders have identified the full implementation of the local content policies as solutions to unemployment in Nigeria.
Aware of this, Dangote Group has been in the forefront of implementing local content in deepening job creation in the country.
Local content refers to a set of actions, local recruitment, training, purchases of local goods and services that are designed to develop the industrial infrastructure and skills of the people in countries that host businesses or projects.
Local content is generally measured as a percentage of investment, hours worked, the equipment manufactured or the number of jobs created. Increasing the local content of projects is a way of enhancing skills and building industrial capacity in host countries. This in turn spurs economic and social growth.
Recently, the Nigerian Content Development and Monitoring Board (NCDMB) declared its intention to partner with Dangote Petroleum Refinery and Petrochemical Free Trade Zone Enterprises (DPRP) on the effective implementation of the Local Content Act in the country. The refinery which is designed to generate over 100,000 indirect jobs and about 3,000 direct jobs for Nigerians, besides, it’s huge employment opportunities for Nigerians also has huge prospects in the area of skill enhancement for Nigerians.
Also, the president of Dangote Group, Alhaji Aliko Dangote said that with time, the expansion project of the sugar refinery will focus on the remarkable production of about a million tons of sugar which should allow it to create more job opportunities for the unemployed and complete its service loop to the society/communities.
At the headquarters of global law firm, Shearman and Sterling LLC, high level business leaders and international diplomats invited by the Corporate Council for Africa in 2017, Dangote predicted that “five of the twelve million jobs needed in Africa soon must be created in Nigeria.”
Also, recently, group general manager of Dangote Sinotruk West Africa Limited, Hikmat Thapa said the company has entered another phase in its expansion drive and increasing its local input into the assembling plant to up to 60 per cent, even as it plans to roll out commercial vehicles soon.
He explained that the expansion drive, which is part of the backward integration plan, is meant to enhance value addition and local content.
Thapa made this known during a facility tour of the Ikeja plant by the Lagos State Commissioner of Commerce, Industry and Cooperatives, Mrs. Olayinka Oladunjoye.
He said having done with the phase one of the project, the Company has embarked on the phase two which has to do with adding of the facility for Cab welding, Painting & Trimming.
Thapa stated that the third phase of the project expansion would be to add the facility that would be used to fabricate, Paint & Assemble different type of Trailer bodies, load bodies with dual & triple axles, Tipper bodies & tankers and so on.
He explained that Dangote Sinotruck has installed capacity to assemble and produce 15 to 16 trucks per shift or 10,000 trucks annually and will create over 3000 different jobs across Nigeria.
Said he, “the company has the plan to have welding & painting shops to fabricate & paint truck cabin & Trailers of different type so as to enhance local content of Completely Knocked Down (CKD) operation of commercial vehicle manufacturing.
“In next one year, we have on our agenda to assemble and fabricate Truck Cabins, different type of trailers, Tipper bodies and Tankers etc. in our plant to increase value additions up 40 to 60 per cent.”
The automobile company, said it hopes to expand sales to all the neighbouring West African States saying “we are targeting to sell our products to ECOWAS countries in addition to fulfilling local market requirement.”
The Commissioner expressed surprise at the level of activities going on at the plant and commended the entrepreneur spirit of Alhaji Aliko Dangote, the Chairman of the Company whose businesses are geared towards touching lives.
Oladunjoye was optimistic that with the level at which the Company was going, it will soon be a matter of time when Nigerians would opportunity for cheap vehicles.
He enjoined other businessmen to emulate Alhaji Dangote in the efforts to create jobs through manufacturing rather than importation of finished products. She promised to relay the message of what she saw back to the state governor.
Dangote Sinotruk West Africa Limited is a Joint Venture between Dangote Industries Limited and Sinotruck of China with the total investment of $100 million formed for assembling different type of Trucks, with the Nigerian Dangote Industries owing 65 per cent equity and 35 per cent by Sinotruk.
The company is established to assemble and produce full range of commercial vehicles covering heavy duty truck, medium truck, light truck and other semi-trailers, among others. It aims to meet an expected current demand of the segment of Automobiles required for logistics, construction, food & beverage industries in Nigeria to support the government’s efforts on boosting the economic development across the country.
The objectives of establishing Dangote Sinotruk West Africa Limited is to provide employment opportunities to Nigerians, improve local automobile industry, add equipment base and achieve technological advancement in Nigeria, and in turn to promote the economic development in Nigeria. The Company is also to form a production hub at Lagos for heavy-duty & light duty trucks and commercial vehicles in West Africa. With the formation of the production base which will not only serve the market demands in Nigeria but also can fulfil the requirements of neighbouring ECOWAS countries.
The Dangote group was established in May 1981 as a trading business with an initial focus on cement. The conglomerate has since diversified its operations into various areas including sugar and salt refining, port operations, real estate, steel and truck assembly.