Dangote Halts Steel Investment Over ‘Disheartening’ Accusation of Monopoly

Dangote Refinery

Aliko Dangote, chairman of Dangote Industries Limited, says he will no longer move forward with his plan to invest in the Nigeria’s steel industry.

Dangote’s decision to pull the plug on the massive project comes two months after his company disclose that plans were underway to enter the steel industry and expand the economy.

He announced the decision to shelve the steel investment plan during a media briefing in Lagos on Saturday at his refinery.

The billionaire said the organisation’s board decided to avoid the steel industry “to prevent accusations of being branded a monopoly”.

Dangote also said the assertions in some quarters that his group of companies enjoy monopoly are completely false.

“You know, about doing a new business which we announced, that is, steel. Actually, our 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,” he said.

“And then also, imports will be encouraged. So we don’t want to go into that.

“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.

He said 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 added.

Dangote, however, encouraged 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,” the billionaire said.

Dangote said people “should bring that money from Dubai and other parts of the world and invest in our fatherland”.

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