Aliko Dangote, Africa’s richest man, has chosen to cancel plans to invest in a new steel plant in Nigeria after government charges that he intends to build a monopoly with his newly functioning 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, Nigeria’s commercial hub, on Saturday.
Dangote, Africa’s richest individual and the world’s wealthiest Black billionaire, has shown a willingness to sell his multibillion-dollar oil refinery to the state-owned Nigerian National Petroleum Corporation (NNPC) Limited. This announcement comes after a new conflict with a significant equity partner and ongoing regulatory concerns in Nigeria.
“Let them (NNPC) buy me out and run the refinery the best way they can. They have labeled me a monopolist,” Dangote expressed in an exclusive interview with PREMIUM TIMES on Sunday. “That’s an incorrect and unfair allegation, but it’s OK. If they buy me out, at least, their so-called monopolist would be out of the way.”
Dangote’s expansion into the oil and gas sector, following years of dominance in Nigeria’s cement, salt, and sugar industries, is facing considerable obstacles. Despite being scheduled to launch its first petrol into the Nigerian market in August, the plant has been working at slightly over half capacity due to challenges getting oil from international producers.
The refinery’s major purpose is to reduce Nigeria’s reliance on imported fuel, potentially saving the government up to 30% of its foreign exchange spending.
Earlier in 2024, Dangote announced plans for a 5,000-ton-per-day steel facility to serve the West African market once the refinery is fully operational.
However, his recent pronouncements have taken a more pointed turn. Dangote, in a thinly veiled jab at competitors, 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 government accused Dangote of seeking a monopoly on diesel and aviation fuel sales by requesting a suspension of imports. Dangote called the accusations “disheartening,” claiming, “Any concessions given to Dangote were also offered to others, and some even receiving more.”
The Dangote Refinery, which has been active since January, produces aviation fuel, naphtha, and diesel. Dangote announced a $100 million investment for the refinery’s site in Lagos’ free trade zone.
He denied charges of poor diesel quality, citing in-house lab testing that showed his diesel contained 87 ppm sulfur, compared to over 1,800 ppm in imported versions. Dangote stated that their goal is to reach 10 ppm by the end of the month. The refinery now exports the majority of its diesel to Trafigura, Vitol, BP, and TotalEnergies.
Gasoline production starts in August, raising output from 350,000 to 550,000 barrels per 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.
