Dangote cancels steel plant construction plans after monopoly allegations

Africa’s richest man Aliko Dangote has shelved plans for a new steel plant in Nigeria after allegations his massive new refinery would create a monopoly.

“Our board of directors has decided that we should not have the steel mill,” the industrialist said at a press conference at the refinery in Lagos on Saturday. “If we do, we will be called all sorts of things.”

The industrialist had previously announced plans to build a 5,000-ton steel plant after the completion of his refinery project, with the aim of supplying steel to the whole of West Africa.

“Let other Nigerians do it too,” the industrialist said. “We are not the only Nigerians here. There are even Nigerians with more money. They should get that money from Dubai and other parts of the world to invest in our own country.”

The Nigerian government recently accused Dangote of seeking a suspension of diesel and jet fuel imports, effectively giving his refinery a monopoly on their sale in Nigeria.

“The allegations of monopoly are disheartening,” the industrialist said. “Whatever Dangote got, other people got. Some even got more than us.”

The $20 billion Dangote Refinery, operational since January, currently produces jet fuel, naphtha and diesel. The industrialist claimed to have paid $100 million for the land in the Lagos Free Trade Zone where the refinery is located.

The industrialist also refuted claims by Nigerian regulators about the quality of diesel from his refinery. Tests conducted at the refinery showed sulphur levels of 87 ppm, while imported diesel was more than 1,800 ppm, Dangote said. He added that the target was to reach 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 expected to start in August, taking total production from 350,000 to 550,000 barrels per day by the end of the year.

“Construction is almost complete,” said Olakunle Alake, Vice President of Dangote Industries Limited. “One or two units are being completed and by August we should have only one item.“I still have to finish it.”

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