Sahara Group's registration tactic to overcome 'colonial mindset' revealed by Tonye Cole

Tonye Cole, co-founder of Sahara Group, has shed light on the company's early days, revealing how he and his partners adopted a foreign identity to overcome the "colonial mentality" prevalent in the oil and gas industry, which made it challenging for young Nigerian entrepreneurs to gain recognition.

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This mentality, according to Cole, led to the perception that foreign companies were more capable than local businesses, prompting him and his partners to register Sahara abroad in the Isle of Man and present it as an expatriate company.

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Cole disclosed that a fictitious British figure, "Dr J", was introduced as the face of the business to gain access to opportunities that would have been difficult for a young Nigerian-owned firm to secure.

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During an interview on the Afropolitan podcast published on Wednesday, Cole explained that the strategy was born out of the reality that many industry players believed foreign companies were more capable than local businesses.

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Cole noted that he and his partners had to rethink their approach after observing that most successful players in the sector were foreign-owned firms, and that they found an interesting niche in this phenomenon.

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The challenge was compounded by their age, as potential clients were reluctant to believe that people in their late 20s could own and operate a company in the sector, leading to an "ageism issue", according to Cole.

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Cole said they discovered that companies making progress in the industry were either foreign entities or had foreign connections, prompting them to register Sahara abroad and create a UK entity.

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He added that they worked with one of their former teachers to create the impression that they were working for an experienced foreign businessman, using the name "Dr J", which was not a Nigerian name.

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Cole explained that they set up a company where they were representatives to themselves, but would present themselves as staff of the expatriate company, and that this arrangement helped them gain acceptance from clients who may not have been willing to engage with a young Nigerian-owned business.

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However, the strategy eventually became difficult to sustain as people began questioning the identity of the supposed foreign boss, with clients asking about the whereabouts of "Dr J" after three years.

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Cole said the experience showed the extent to which Nigerian entrepreneurs had to navigate structural barriers in the business environment at the time, and that it taught him valuable lessons about partnerships, innovation, and adaptability.

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Cole's entrepreneurial journey began before establishing Sahara Group, tracing back to his days as an architecture student at the University of Lagos, where he and his partners started making architectural models for firms.

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Sahara Group has since grown into a multinational energy conglomerate with operations across several countries, and Cole has also ventured into politics, contesting the Rivers State governorship election on the platform of the All Progressives Congress in 2023.