Africa’s richest man, Aliko Dangote, has abandoned plans to construct a new steel plant in Nigeria, responding to allegations that his recently completed refinery would create a monopoly.
“Our board has decided that we should not have the steel plant,” Dangote announced during a Saturday press conference at the Lagos refinery. “If we do, we will be called all sorts of names.”
Previously, Mr. Dangote had revealed intentions to build a 5,000-ton steel plant following the refinery’s completion, aimed at supplying steel across West Africa.
However, he now invites other Nigerians to step in.
“Let other Nigerians also go and do it,” he stated. “We are not the only Nigerians here. There are even some Nigerians with even more cash. They should bring in that money from Dubai and from other parts of the world to invest in our own fatherland.”
The Nigerian government had recently accused Mr. Dangote of requesting a suspension on diesel and aviation fuel imports, a move that would grant his refinery a monopoly on their sale in Nigeria. “The monopoly accusations are disheartening,” Mr. Dangote remarked. “Whatever Dangote was given, other people too were given. In fact, some of them even got more than us.”
Since its January launch, the $20 billion Dangote Refinery has been producing aviation fuel, naphtha, and diesel. Mr. Dangote claimed to have paid $100 million for the land in the Lagos free trade zone where the refinery is located. He also refuted allegations from Nigerian regulators about the quality of his refinery’s diesel, noting that tests showed sulfur content of 87 ppm, compared to imported diesel’s 1,800 ppm.
He added that they aim to achieve 10 ppm by the end of the month.
Currently, the refinery exports most of its diesel to customers such as Trafigura, Vitol, BP, and TotalEnergies. Gasoline production is set to begin in August, increasing overall production from 350,000 to 550,000 barrels per day by the end of the year.
“Construction is nearly complete,” said Olakunle Alake, vice president of Dangote Industries Limited. “One or two units are being finalized, and by August, we should only have one item left to complete.”
