By Aliko Dangote, Africa’s richest man, has decided not to proceed with the construction of a new steel plant in Nigeria due to concerns about potential monopoly accusations related to his extensive new refinery project.
Speaking at a press conference at the refinery in Lagos on Saturday, Dangote stated, “Our board has decided that we should not pursue the steel plant. If we proceed, we will face unwarranted criticism.”
Previously, Dangote had announced intentions to build a 5,000-ton steel plant following the completion of his refinery, aimed at supplying steel across West Africa.
“Let other Nigerians also venture into this,” Dangote asserted. “We are not the only Nigerians here. There are others with substantial resources. They should bring their investments to our homeland from Dubai and other parts of the world.”
The Nigerian government recently accused Dangote of seeking a suspension on diesel and aviation fuel imports, potentially granting his refinery exclusive rights to their sale in Nigeria.
Responding to these allegations, Dangote expressed disappointment, stating, “The monopoly claims are disheartening. Whatever privileges Dangote received, others received as well, with some even obtaining more than us.”
The $20 billion Dangote Refinery, operational since January, currently produces aviation fuel, naphtha, and diesel. Dangote disclosed acquiring the land in the Lagos free trade zone for $100 million.
Addressing concerns over the quality of the refinery’s diesel, Dangote cited tests revealing a sulfur content of 87 ppm, significantly lower than the imported diesel exceeding 1,800 ppm. He emphasized ongoing efforts to achieve 10 ppm by month’s end.
Presently, the refinery supplies diesel to customers such as Trafigura, Vitol, BP, and TotalEnergies, with gasoline production set to commence in August, boosting daily production from 350,000 to 550,000 barrels by year-end.
“Our construction is nearing completion,” remarked Olakunle Alake, vice president of Dangote Industries Limited. “Final touches are underway, with only one component slated for completion by August.”
