![Dangote Halts Steel Plant Project Amid Monopoly Accusations](https://luvmp.com/wp-content/uploads/2024/07/Aliko-Dangote2.png)
Aliko Dangote, Africa’s richest man, has abandoned plans to develop a new steel plant in Nigeria following accusations of attempting to create a monopoly with his new refinery. The decision was announced during a media briefing at his Lagos refinery on Saturday.
Earlier this year, Dangote had unveiled plans to construct a 5,000-ton steel plant to serve the West African market once his $20 billion refinery became fully operational. However, amid criticism from the Nigerian government, the company’s board decided to halt the project to avoid further controversy.
The Nigerian government accused Dangote of seeking to suspend diesel and aviation fuel imports, which would have granted his refinery exclusive control over these products in Nigeria. Dangote described these monopoly accusations as “very disheartening,” noting that other businesses had received similar opportunities and even more support.
The Dangote Refinery, operational since January, produces aviation fuel, naphtha, and diesel. Dangote revealed that he paid $100 million for the land in the Lagos free trade zone where the refinery is located. He also refuted claims from Nigeria’s downstream regulator that the diesel produced at his refinery is of inferior quality compared to imports. Lab tests showed that his refinery’s diesel has a sulfur content of 87 ppm, significantly lower than the over 1,800 ppm found in some imported varieties, with a target of achieving 10 ppm sulfur content by the end of the month.
Most of the refinery’s diesel is exported to major customers such as Trafigura, Vitol, BP, and TotalEnergies. The refinery is set to begin gasoline production in August, with plans to increase its output from 350,000 barrels per day to 550,000 barrels per day by the end of the year. Olakunle Alake, vice president of Dangote Industries Ltd., stated that the refinery’s construction is nearing completion, with only one or two units left to finalize, expected to be done by August.
Defending his business practices, Dangote stated, “Monopoly is when you stop people, you block them through legal means. No, it is a level playing field whereby whatever Dangote was given in cement, for example, other people were given because some of them even got more than us.” He encouraged other wealthy Nigerians to invest in the industry to boost the country’s economy, saying, “Let other Nigerians go and do it. We are not the only Nigerians here. There are some Nigerians with more cash than us. People should bring that money from Dubai and other parts of the world and invest in our fatherland.”
This move by Dangote aims to dispel accusations of monopolistic practices while encouraging broader investment in Nigeria’s industrial sector.
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