On the 21st day of May, 2025, Governor Agbu Kefas of Taraba State hosted an investment summit in Jalingo, drawing prominent investors, including Aliko Dangote, Africa’s wealthiest industrialist and leader of the Dangote Group. The summit aimed to position Taraba as a prime destination for agricultural and industrial investments, leveraging its fertile lands and strategic location. While many investors might see promise in the state’s fertile lands and strategic location, I believe Aliko Dangote may remain skeptical and reluctant to commit substantial new investments in Taraba, particularly given the troubled history of the Dangote Group’s sugar and tomato projects in the state, notably in the Lau axis. 


One of the primary reasons I feel Dangote may hesitate to invest further in Taraba is the unresolved community compensation disputes that plagued the Lau/Tau Sugar Project. In 2006, the Dangote Group paid N1.2 billion to the Taraba State government as compensation for 16,000 hectares of land acquired for a sugar plantation and factory in Lau Local Government Area. However, the disbursement process was riddled with irregularities. Reports indicate that at least 200 farmers received only 10-30% of their entitled compensation, with no clear timeline for receiving the balance. The Lau Communities Development Association called for investigations into the disbursement committees, highlighting significant mistrust between the communities and the state government. This unresolved conflict, as reported in 2015, created a hostile environment for investment, as local communities felt shortchanged and resisted project progress. Such disputes not only delay projects but also damage investors confidence, and I believe Dangote, having faced this setback, would be cautious about committing to new ventures in Taraba without assurances of transparent and fair compensation processes.


Other investors at the summit, who may not have had or yet to face similar insituation in Taraba, might be more willing to explore opportunities. For instance, new investors in sectors like agribusiness or infrastructure may see the summit as a fresh opportunity to negotiate clear terms with the state government, unburdened by past grievances. However, for Dangote, the memory of these disputes looms large. I believe the lack of transparency in handling compensation in the past would make him cautious about new ventures in Taraba, fearing a repeat of community pushback that could jeopardize investments.


The Lau/Tau Sugar Project, initiated around 2004, suffered a 13-year delay before a revised Memorandum of Understanding (MoU) was signed in 2017. Even then, progress remained slow, with reports as late as 2021 indicating that the project was still on hold due to unresolved community welfare issues. Governor Darius Ishaku acknowledged in 2017 that disputes over community welfare were a key factor in the delay, underscoring systemic challenges in project execution in Taraba. These delays, spanning over two decades, likely frustrated the Dangote Group, which is known for its efficiency in executing large-scale projects elsewhere, such as the Obajana Cement Plant in Kogi State.


For a conglomerate like Dangote’s, which thrives on timely execution to maximize returns, such prolonged delays represent a significant opportunity cost. The Taraba experience contrasts sharply with the group’s more successful ventures in other regions, where projects have progressed more swiftly. Other investors at the summit might be swayed by Governor Kefas’s promises of streamlined processes. However, I believe Dangote’s past experience with bureaucratic and community-related bottlenecks in Taraba would make him skeptical of the state’s ability to deliver on new investment commitments promptly.


Another reason I believe Dangote may be reluctant to invest heavily in Taraba is the group’s strategic shift toward similar projects in other regions, where progress has been more tangible. The Dangote Sugar Refinery’s Backward Integration Programme (BIP) has seen great advancements in Adamawa (Numan), where the group has acquired 32,000 and has since began operation, while in Nasarawa (Tunga), the group has acquired 68,000 hectares for sugar plantations and refineries, and the project is actively progressing, with land clearing, planting, and factory upgrades underway. The success and momentum in these regions likely make them a safer bet for Dangote’s resources compared to Taraba, where the Lau/Tau project remains stalled.


Similarly, while less is documented about a specific tomato project in Taraba, the Dangote Group’s experience with a $20 million tomato processing plant in Kadawa, Kano State, launched in 2016, suggests a cautious approach to agricultural investments in regions with logistical and supply chain issues. The Kano plant struggled with insufficient tomato supply and high costs, leading to undercapacity operation. This experience may have prompted Dangote to pivot away from high-risk agricultural ventures in regions like Taraba, where infrastructure and supply chain issues mirror those in Kano. Instead, the group has prioritized its massive $19 billion refinery project in Lekki, Lagos, and other high-return ventures across cement, fertilizers, and petrochemicals, which demand significant capital and attention.


Other investors at the summit, particularly those with smaller-scale or less capital-intensive projects, may find Taraba’s agricultural potential attractive, especially with incentives promised by Governor Kefas. For instance, investors in rice or maize farming, as highlighted by the Rice Farmers Association of Nigeria (RIFAN) in Taraba, might see opportunities in the state’s fertile lands despite high production costs. However, for Dangote, whose conglomerate operates on a massive scale, the opportunity cost of investing in Taraba—where past projects have faltered—may outweigh the potential benefits, especially when compared to more successful ventures elsewhere.


Governor Agbu Kefas’s investment summit is a bold step toward positioning Taraba as an investment hub, but convincing investors to invest requires more than promises, my dear Governor, ‘King Promise' as you are now nicknamed. 


To attract investors, Governor Agbu Kefas must create a value-driven environment in Taraba State that competes with Nigeria’s top investment destinations like Lagos, Ogun, and Rivers, while addressing challenges that have deterred investors, as seen in the Dangote Group’s struggles in Taraba and Kano.


Taraba’s poor road network isolates key economic LGAs raising logistics costs and discouraging investors. Despite Jalingo Airport’s upgrade, weak road connectivity to economic hubs remains a barrier. The Taravaest2025 summit showcased Taraba’s agricultural and industrial potential, but summits alone can’t compete with states where strong infrastructure and business support attract investment naturally. Just like Mr Aliko Dangote said yesterday, “You don't invite investors, you attract them.“ 


Thank you for taking the time to read this, my name is Chrispodiah Emmanuel, alias, Lyon. Do have a productive day.


22nd May, 2025.