Africa’s richest man, Aliko Dangote, has decided to abandon plans to invest in a new steel plant in Nigeria following government accusations that he aims to establish a monopoly with his newly operational 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 stated during a media briefing at the refinery in Lagos on Saturday.
Dangote, whose net worth stands at $14.5 billion, making him Africa’s richest individual and the wealthiest Black billionaire globally, also indicated a willingness to sell his multi-billion-dollar oil refinery to the state-owned NNPC Limited. This announcement follows a new dispute with a key equity partner and ongoing regulatory issues.
“Let them [NNPC Limited] buy me out and run the refinery the best way they can. They have labeled me a monopolist,” Dangote expressed on Sunday. “That’s an incorrect and unfair allegation, but it’s okay. If they buy me out, at least, their so-called monopolist would be out of the way.”
Dangote’s venture into the oil and gas sector, after years of dominating Nigeria’s cement, salt, and sugar industries, is encountering significant challenges. Despite being set to roll out its first petrol to the Nigerian market in August, the plant has been operating at just over half capacity due to difficulties in sourcing crude from international producers.
The refinery’s primary goal is to wean Nigeria off its reliance on imported fuel, potentially saving the country up to 30 percent of its foreign exchange expenditure on such imports.
Earlier in 2024, Dangote announced plans for a 5,000-ton-per-day steel plant to serve the West African market once the refinery reaches full capacity.
However, his recent pronouncements have taken a more pointed turn. In a thinly veiled jab at competitors, he urged them to invest in Nigeria, stating: “Let other Nigerians also go and do it, because we are not the only Nigerians here, there are even some Nigerians with even more cash. They should bring in that money from Dubai and from other parts of the world to come and invest in our own fatherland.”
Last week, the Nigerian petroleum regulatory agency accused Dangote of seeking a monopoly on diesel and aviation fuel sales by requesting a suspension of imports. The billionaire called the accusations “disheartening,” claiming; “Any concessions given to Dangote were also offered to others,a some even receiving more.”
Dangote Refinery, which commenced operation around January, produces aviation fuel, naphtha, and diesel. The Africa richest man revealed a $100 million investment for the refinery’s land in Lagos’s free trade zone.
He refuted allegations of inferior diesel quality, citing in-house lab tests showing his diesel at 87 ppm sulfur compared to over 1,800 ppm in imported varieties. He added that they aim for 10 ppm by month’s end. The refinery currently exports most of its diesel to Trafigura, Vitol, BP, and TotalEnergies.
The refinery says its gasoline production starts in August, and will raise output from 350,000 to 550,000 barrels per-day-stream-day by year-end. “Construction is nearing completion,” said Olakunle Alake, vice president of Dangote Industries Ltd. “One or two units are being finalized and by August we should have just one item to complete,” Alake said.
( *Premium Times)*