Dangote withdraws from Nigeria’s steel industry over monopoly allegations

Aliko Dangote, President and CEO of Dangote Group, has revealed that the company will forgo its plans to invest in Nigeria’s steel sector to prevent potential monopoly allegation.

In a statement made on Saturday at his Lagos refinery, Dangote explained that the decision to withdraw was made by the company’s board to avoid any implications of attempting to dominate the industry.

He noted that engaging in steel production would necessitate importing raw materials, conflicting with the firm’s primary objectives.

“Our board has decided not to pursue the steel business because it could lead to accusations of monopoly and increased imports, which we want to avoid,” Dangote stated.

He also encouraged other Nigerian investors to explore opportunities in the steel industry to enhance the nation’s economic growth.

“We are not the only Nigerians with resources. Others with significant capital should invest in our country,” he added.

Dangote had few weeks ago expressed ambitions to venture into steel production, aiming to ensure that all steel used in West Africa would be sourced from Nigeria.

He had emphasized the importance of industrializing the continent and reducing reliance on imported finished products.

Despite Nigeria’s efforts to establish itself as a leader in steel manufacturing, previous initiatives such as the Ajaokuta steel plant and other projects have struggled, with significant investments failing to yield results.

The current administration under President Bola Tinubu had pledged to revitalize the Ajaokuta steel complex, but progress remains uncertain.

Dangote’s withdrawal from the steel sector could mean continued challenges for the industry, potentially delaying the advancement of local steel production and economic development in the sector.