Aliko Dangote, Africa’s richest man, has shelved plans to develop a new steel plant in Nigeria after the government accused him of attempting to establish a monopoly with his new refinery.
Speaking at a media briefing on Saturday at the Lagos refinery, Dangote explained the decision was made by his company’s board to avoid further criticism.
Earlier this year, Dangote had announced his intention to construct a 5,000-ton steel plant to serve the West African market once his massive refinery was fully operational. “Let other Nigerians also go and do it,” Dangote stated, encouraging other wealthy Nigerians to invest in the country.
The Nigerian government recently claimed that Dangote had sought to suspend diesel and aviation fuel imports, which would have given his refinery exclusive control over these products in Nigeria.
Dangote called these monopoly accusations “very disheartening,” noting that other businesses had received similar opportunities and even more substantial support.
The $20 billion Dangote Refinery, operational since January, currently produces aviation fuel, naphtha, and diesel. Dangote revealed he paid $100 million for the land in the Lagos free trade zone where the refinery is located.
Dangote also refuted allegations from Nigeria’s downstream regulator that the diesel produced at his refinery is of inferior quality compared to imports. Lab tests, he said, indicated that his refinery’s diesel has a sulfur content of 87 ppm, significantly lower than the over 1,800 ppm found in some imported varieties. The target is to achieve 10 ppm sulfur content by the end of the month.
Most of the refinery’s diesel is exported to major customers such as Trafigura, Vitol, BP, and TotalEnergies. The refinery is set to begin gasoline production in August, aiming to increase its output from the current 350,000 barrels per day to 550,000 barrels per day by the end of the year.
Olakunle Alake, vice president of Dangote Industries Ltd., stated that the refinery’s construction is nearing completion, with only one or two units left to finalise, expected to be done by August.