The President and Chief Executive Officer (CEO) of Dangote Group, Aliko Dangote, has announced that the company will abandon its plans to enter Nigeria’s steel industry to avoid being branded a monopoly.
Dangote made this disclosure in a statement on Saturday while addressing journalists at his refinery in Lagos.
The business tycoon explained that the company’s board decided to avoid the steel industry to prevent accusations of attempting to monopolize it.
“Our board has decided that we should not have the steel plant,” Dangote said. “If we do, we will be called all sorts of names.”
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Dangote had previously announced plans to construct a 5,000-ton steel plant after the completion of his refinery project, aiming to supply steel across West Africa.
“Let other Nigerians also go and do it,” Mr Dangote said. “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 Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed recently accused Dangote of requesting a suspension on diesel and aviation fuel imports, which would effectively grant his refinery a monopoly on their sale in Nigeria.
“The monopoly accusations are disheartening,” Mr Dangote said. “Whatever Dangote was given, other people too were given. In fact, some of them even got more than us.”
The $20 billion Dangote Refinery, operational since January, currently produces 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 situated.
Mr Dangote also refuted allegations from Nigerian regulators regarding the quality of his refinery’s diesel. Tests conducted at the refinery showed sulfur content of 87 ppm, while imported diesel exceeded 1,800 ppm, according to Mr Dangote. He added that the goal was 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 scheduled to begin in August, raising overall production from 350,000 to 550,000 barrels per day by year end.
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