Aliko Dangote, chairman of Dangote Industries Limited, announced on Saturday that the company will no longer pursue its planned entry into Nigeria’s steel industry.
This decision comes two months after Dangote Industries had declared intentions to invest in the steel sector as part of a broader strategy to expand the economy.
Speaking to journalists at his refinery in Lagos, the billionaire explained that the board of Dangote Industries made the decision to avoid accusations of monopolistic practices.
“You know, about doing a new business which we announced, that is, steel. Actually, our board has decided that we shouldn’t do the steel because if we do the steel business, we will be called all sorts of names like monopoly,” Dangote said. “And then also, imports will be encouraged. So we don’t want to go into that.”
Dangote dismissed claims that his group of companies enjoys monopolistic advantages, calling such accusations unfounded.
“If you look at all our operations at Dangote (Group), we add value; we take local raw materials and turn them into products, and we sell. We have never consciously or unconsciously stopped anybody from doing the same business that we are doing,” he stated.
He cited the example of Dangote Cement, highlighting that when his company entered the cement production market, Lafarge was already operating in Nigeria without being labeled a monopoly. “Nobody ever called Lafarge a monopoly,” Dangote remarked.
The billionaire expressed disheartenment at the monopoly label attached to his enterprises. “Monopoly is when you stop people, you block them through legal means. No, it is a level playing field whereby whatever Dangote was given in cement, for example, other people were given because some of them even got more than us,” he added.
Despite stepping back from the steel industry, Dangote encouraged other Nigerians to invest in the sector to bolster the country’s economy.
“Let other Nigerians go and do it. We are not the only Nigerians here. There are some Nigerians with more cash than us,” Dangote said. “People should bring that money from Dubai and other parts of the world and invest in our fatherland.”
