Aliko Dangote Calls Textile Investment His ‘Biggest Business Mistake’
Africa’s richest industrialist Aliko Dangote says his investment in textiles became the biggest mistake of his business career after the operation collapsed and almost 8,000 workers lost their jobs.
President of the Dangote Group, Aliko Dangote, has described his investment in Nigeria’s textile industry as the biggest business mistake of his decades-long career.
Dangote said the venture ultimately collapsed after struggling to compete with imported products, an experience he said influenced how he approached subsequent investments.
“My biggest business mistake was textiles,” Dangote said during an interview with Arise Television.
The Nigerian industrialist attributed the failure partly to what he described as insufficient policy protection for domestic manufacturers and the dumping of cheaper products from overseas.
“We were swamped by Chinese dumping and Indian dumping. So eventually we had to close down,” he said.
Almost 8,000 Workers Lost Their Jobs
Dangote said the collapse of his textile operations had significant consequences for employees.
Almost 8,000 workers were retrenched across the textile business, according to the businessman, with the overwhelming majority employed at Nigerian Textile Mills in Ikeja, Lagos.
“We laid off a total of almost 8,000 workers — 6,920 workers from Nigerian Textile Mills here in Ikeja alone,” Dangote said.
The scale of the job losses made the failure particularly consequential beyond the financial impact on the business itself.
His comments also highlighted the challenges Nigerian manufacturers have faced in competing with imported products while maintaining domestic production and employment.
Failure Changed Dangote’s Investment Strategy
Dangote said the textile experience subsequently influenced how he evaluates major investments.
One of the lessons, he said, was the importance of building businesses capable of surviving even after government protections or favourable policies are withdrawn.
That approach would become particularly significant as Dangote expanded into major industrial sectors and developed increasingly capital-intensive businesses.
His wider business interests have included cement, sugar, salt, fertiliser and petroleum refining, among other industries.
The textile failure therefore stands out in a business career more commonly associated with large-scale industrial expansion.
Dangote Points To Pressure From Imports
Dangote's account places the textile collapse within the wider debate over the ability of domestic manufacturers to compete against imported goods.
Nigeria's textile industry was once a significant source of manufacturing employment, but local producers have faced persistent competitive pressures over the years.
For Dangote, the experience demonstrated the risks of building an operation whose competitiveness depends heavily on continuing government protection.
Despite subsequently building one of Africa's largest industrial groups, he continues to regard the textile venture as the most significant business mistake of his career.
