Business mogul Aliko Dangote has announced the sudden halt of plans to invest in a new steel plant, citing concerns over accusations of monopoly. T
Business mogul Aliko Dangote has announced the sudden halt of plans to invest in a new steel plant, citing concerns over accusations of monopoly.
This comes just days before the scheduled launch of his massive oil refinery project in Lagos.
Dangote who is Africa’s richest man explaining the board decision said, “Actually, our own board has decided that we shouldn’t do the steel because if we do the steel business, we will be called all sorts of names like monopoly. And then also, imports will be encouraged. So we don’t want to go into that,” he said.
Dangote, however, urged other Nigerians to invest in the industry to help boost the country’s economy.
“Let other Nigerians go and do it. We are not the only Nigerians here. There are some Nigerians with more cash than us. They should bring that money from Dubai and other parts of the world and invest in our own fatherland,” the CEO added.
On June 13, Dangote said he would go into steel production shortly, with West Africa as his target market like Andrew Carnegie led the expansion of the American steel industry in the late 19th century and became one of the richest Americans in history.
Nigeria has significant amounts of iron-ore deposits, particularly in states like Kogi.
Nigeria spends around $4 billion on steel imports annually, despite having around 74 steel plants and fabricators across the country.
While dismissing claims that his group of companies enjoy monopoly, Aliko who is Africa’s richest man said the labelling of his group of companies as monopolistic is disheartening.
He said his group of companies had never stopped anyone from doing the same business that they are doing.
He said: “If you look at all our operations at Dangote (Group), we add value; we take local raw materials and turn them into products, and we sell. We have never consciously or unconsciously stopped anybody from doing the same business that we are doing.
“When we first came into cement production, it was only Lafarge that was operating here in Nigeria…Nobody ever called Lafarge a monopoly,” he said, adding that labelling his group of companies as monopolistic is disheartening.
“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 said.
He also said that he did not enjoy any incentive from the Nigerian government to build his $20 billion worth of refinery sited at the Lekki Free Trade Zone.
“In the refinery, we did not, and I repeat, we did not collect one single incentive from the Federal Government of Nigeria or even Lagos State.
“Yes, the Lagos State gave us a good deal but we paid $100 million for the land. It wasn’t free land; we paid for it,” he said.
“Majority of the population are with us. So, we are not discouraged, we will continue what we are doing.”
Dangote further called on the House of Representatives to investigate the quality of diesel and petrol at filling stations, refuting the claims that petroleum products from his refinery are substandard.
Dangote also urged the House to set up a committee to test products at various filling stations across the country, decrying the damage being done to vehicles and engines by substandard products.
