Dangote reveals why he is dumping plans to build a steel company

• Aliko Dangote, President of the Dangote Industries Limited, has said the company will discontinue its plans to build a steel manufacturing firm
• Dangote said the company’s board decided against the plan not to be labeled monopolistic
• He said the allegations of trying to monopolize businesses in Nigeria have become a significant discouragement.

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Aliko Dangote, president of the Dangote Group, has said the group will no longer invest in Nigeria’s steel industry to avoid the monopoly label.

The Nigerian billionaire disclosed this on Saturday, July 20, 2024, stating that the allegations of trying to monopolize businesses in Nigeria have become a significant discouragement.

Chairman of the Dangote Industries Limited. Aliko Dangote Credit: Bloomberg/Contributor
Source: Getty Images

Dangote challenges NMDPRA

On Thursday, July 18, 2024, the chief executive of Nigeria Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said that the Nigerian government will not end the importation of petroleum products, saying that it cannot rely on the Dangote Refinery to feed the country.

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The NMDPRA boss said that petroleum products such as diesel from the refinery contain a high sulfur of about 1,000 parts per million (PPM).

Legit.ng reported that Dangote Industries Limited (DIL) condemned the statement criticizing the quality of its products, stating that its diesel is 80% superior to imported ones.

According to reports, the company’s spokesman, Anthony Chiejine, disclosed this in a statement on Friday, July 19, 2024, and called the reports mischievous and meant to destroy the company’s reputation.

NDMRA boss calls Dangote’s product inferior

Legit.ng reported that the Dangote refinery had accused the NMDPRA of licensing marketers to import dirty fuel into the country.

Dangote accuses NMDPRA of allowing dirty fuel into Nigeria

The vice president of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has revealed that the Nigerian Midstream Petroleum Regulatory Authority (NMDPRA) 's indiscriminate licensing of oil marketers allows the import of dirty diesel and aviation fuel into Nigeria. 

Edwin disclosed this during an interaction with a group of Energy Editors at a one-day training programme organized by the Dangote Group. 

He said the NMDPRA continues to license marketers to import banned refined petroleum products from other countries into Nigeria. 

Also, the refinery management had accused international oil companies (IOCs) of trying to undermine the refinery's efforts by inflating prime crude oil prices.

Dangote gives reasons for importing crude oil

Legit.ng earlier reported that the chairman of the Dangote Refinery, Aliko Dangote, has explained why his refinery will continue to import crude from abroad, especially from other African countries.

He said the 650,000 bpd-capacity refinery will start crude imports from other African countries in October due to non-availability in Nigeria.

The Nigerian industrialist stated that his company will source crude from other African countries after importing it from the US and Brazil recently.

Source: Legit.ng