Aliko Dangote, the president and chief executive officer (CEO) of the Dangote Group, has said that the business will give up on its ambitions to join Nigeria’s steel market to avoid being called a monopoly.
While speaking to reporters at his refinery in Lagos on Saturday, Dangote disclosed this information in a statement.
The business magnate clarified that the board of the company made the decision to stay out of the steel sector in order to avoid being accused of trying to monopolise it.
In addition, he pointed out that pursuing this project would encourage the importation of raw materials from other countries, which runs counter to the company’s primary goal.
“You know, about doing a new business which we announced, that is, the steel.”
“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 stated.
To support the nation’s economy, Dangote, however, asked other Nigerians to make investments in the sector.
“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 country,” the CEO said.
Aliko Dangote stated in a June TNC story that his company intends to enter the steel production business soon and that he wants to guarantee that all of the steel used in West Africa is sourced from Nigeria.
He mentioned that the next initiative after the refinery would be to manufacture steel and make sure that Nigeria supplied all of the steel used in West Africa.
“I don’t like people coming to take our solid minerals to process and bring the finished product. We ought to make an effort to industrialise and advance our continent.”
“I told somebody we are not going to take any break. What we’re trying to do is ensure that, at least in West Africa, every single steel that we use comes from Nigeria,” Dangote stated at the time.
Things to note
Even under private and public control, Nigeria has made several failed attempts to establish itself as a global leader in the steel manufacturing sector, including the Ajaokuta Steel Plant, Delta Steel Company, Osogbo, and Jos rolling mills.
Similar to oil refineries, the federal government has spent billions throughout many regimes attempting, but failing, to bring the local steel factories back into operation.
During the election campaigns, President Bola Tinubu’s administration pledged to see to it that steel production began at the multibillion-dollar Ajaokuta steel complex.
Dangote’s involvement in the industry may have changed everything by bringing in additional money and business opportunities.
The richest man in Africa has made a decision, and as a result, the steel industry might continue to suffer from years of underinvestment.
