Industrial Policy and Firms’ Adaptations to Imperfect Pockets of Efficiency: The Case of Dangote Group

Publication Date: 25/11/2020


Author(s): Abel B.S. Gaiya.

Volume/Issue: Volume 3 , Issue 6 (2020)



Abstract:

Among other factors, successful industrial policy requires pockets of bureaucratic efficiency to be present. However, there are cases whereby pockets of efficiency are imperfect under competitive clientelist political settlements. As such, adequate resources and organizational capabilities of capitalists could compensate for the deficits in industrial policy tools while being supported by other, “lighter”, policy tools. The case of Dangote Group in the Nigerian cement and downstream oil industries is presented to demonstrate this. While the Nigerian state was unable to implement heavier industrial policy tools, it could provide tariffs and fiscal incentives (tax exemptions and holidays). Yet, for most of the Fourth Republic period, only in the cement industry was there such a firm to take advantage of these industrial supports.


Keywords:

Industrial Policy, Political Settlements, Pockets of Effectiveness, Diversified Business Groups, Nigeria, Dangote


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CC BY-NC-ND 4.0