Dangote Exits Steel, Encourages Others to Invest

Dangote shelves steel investment, calls on others to take the reins...

Aliko Dangote puts steel plant investment on hold, citing concerns about monopoly and imports. Instead, he urges fellow Nigerians to invest in the steel industry, highlighting its potential for growth and contribution to the country's economic development.

Business magnate Aliko Dangote has put on hold his plans to invest in a new steel plant, a surprising move that comes just days before the highly anticipated launch of his massive oil refinery project in Lagos.

Dangote, instead, is urging other Nigerian investors to explore opportunities in the steel industry, a sector he believes has immense potential for growth and development. By shelving his steel investment plans, Dangote is paving the way for others to tap into the industry's vast potential.

Dangote who is Africa's richest man explaining the board decision said, “Actually, our own 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. And then also, imports will be encouraged. So we don't want to go into that,” he said.

Dangote encouraged his fellow Nigerians to invest in the steel industry, emphasizing its potential to significantly contribute to the country's economic growth and development.

“Let other Nigerians go and do it. We are not the only Nigerians here. There are some Nigerians with more cash than us. They should bring that money from Dubai and other parts of the world and invest in our own fatherland,” the CEO added.

On June 13, Aliko Dangote announced his plans to venture into steel production, with the aim of catering to the West African market. His ambition is reminiscent of Andrew Carnegie's pioneering role in the expansion of the American steel industry in the late 19th century, which propelled Carnegie to become one of the wealthiest individuals in American history.

Nigeria boasts an abundance of iron ore deposits, particularly in states like Kogi, providing a solid foundation for a thriving steel industry. Despite this potential, the country has yet to tap into the full potential of its iron ore reserves, presenting an opportunity for investors like Dangote to capitalize on this untapped resource and spearhead the growth of the steel sector in Nigeria.

Despite boasting an impressive 74 steel plants and fabricators, Nigeria still relies heavily on steel imports, shelling out a staggering $4 billion annually, a paradox that highlights the country's underutilized steel production capacity.