Aliko Dangote, Africa’s richest man, has decided to stop plans for a new steel plant in Nigeria.
This follows government accusations that he aims to create a monopoly with his new refinery.
“Our own board has decided that we should not have the steel plant. If we do, we will be called all sorts of names,” Dangote said at a press conference in Lagos on Saturday.
Beyond Boders recalls that Dangote announced plans for a 5,000-ton steel plant after his refinery became operational, earlier this year.
However, he now says other Nigerians should invest instead, noting that some have even more money to do so.
The Nigerian government accused Dangote of wanting to control the sale of diesel and aviation fuel by asking for import suspensions. Dangote denied these claims, calling them “very disheartening” and stated that other companies were given similar opportunities.
The $20-billion Dangote Refinery started operating in January, producing aviation fuel, naphtha, and diesel. Dangote mentioned spending $100 million on the land for the refinery in Lagos.
He also refuted claims that the refinery’s diesel is of lower quality than imported diesel, citing lab tests showing lower sulfur content in their product.
The company exports most of its diesel to major clients like Trafigura, Vitol, BP, and TotalEnergies.
The refinery plans to start gasoline production in August, aiming to increase output to 550,000 barrels a day by year-end from the current 350,000 barrels. Construction is nearly complete, with only a few units left to finalize.
