Billionaire Aliko Dangote Halts Nigerian Steel Plant Plans Amid Monopoly Concerns

Aliko Dangote, Africa’s richest man, has abandoned plans to establish a new steel plant in Nigeria. This decision follows government concerns that his recently completed refinery could lead to monopolistic dominance in the country.

Dangote Group’s President and CEO explained at a media briefing held at the Lagos refinery that the board decided against proceeding with the steel plant to avoid negative perceptions and accusations of monopolistic practices. He indicated that the company wanted to avoid being labeled negatively due to its expanding influence.

During the briefing, Dangote urged affluent Nigerians to invest within the country instead of channeling their wealth into international markets like Dubai. He emphasized that such investments are crucial for Nigeria’s economic growth and prosperity. He pointed out that there are other wealthy Nigerians who could bring back their investments from abroad to support domestic development.

Previously, Dangote had announced intentions to enter the steel industry, with plans to position Nigeria as the leading steel supplier for West Africa. He expressed a vision of industrializing the continent by processing local minerals rather than relying on international processors. The aim was to ensure that all steel used in West Africa would be produced in Nigeria.

This announcement came on the heels of the launch of Dangote’s refinery project. Additionally, it was disclosed that Dangote had requested the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to halt fuel imports into the country. Farouk Ahmed, the agency’s Chief Executive, stated in a video released by the State House media that Dangote wanted to ensure all oil marketers sourced fuel exclusively from his refinery. However, the agency declined this request to prevent a monopoly and due to concerns over the refinery’s oil quality.

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