Dangote aborts steel plant construction plan amid monopoly accusation

Africa’s richest man, Aliko Dangote, has shelved plans to build a new steel plant in Nigeria following accusations that his massive new refinery would engender monopoly.
“Our board has decided that we should not have the steel plant,” Dangote said at a press conference on Saturday at the refinery in Lagos. “If we do, we will be called all sorts of names.”
Mr 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 Nigerian government recently accused Mr 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.
“Construction is nearly complete,” said Olakunle Alake, vice president of Dangote Industries Limited. “One or two units are being finalised, and by August, we should only have one item left to complete.”
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