The news from Dangote Group considering its involvement in the economic climate in Nigeria is not something to cheer about. First, the group is lamenting the hostility it is facing in the oil and gas sector. And that is at a time Nigerians are jumping for joy that Dangote has come to save them from the rising cost of petroleum products. Then, on the sides, the criticism of Dangote Group gaining weight and recognition on the international plane at the expense of competitors has been cited as a reason to rethink the decision by the group to invest in the steel industry.
So, it came as a surprise to many people when the President of Dangote Group, Aliko Dangote, announced the suspension of his plans to invest in Nigeria’s steel industry. He was reacting to the accusation that he was engaging in a monopolistic system of wealth creation in the country. The critics are referring to the traits of the group to be in almost every facet of business enterprise in the country. For instance, Dangote is in the cement sector, as he is present in the food sector making salt, noodles among others.
The billion-dollar businessman dropped the hint about rethinking plans to invest in the steel sector while addressing journalists at the refinery. Dangote had bought the Steel Rolling Mills in Osogbo, capital of Osun State from the federal government some years back. And the company had said that it was prepared to invest in the country’s steel industry and expand the economy.
But speaking to journalists, Dangote said, “You know, about doing a new business which we announced, that is, steel. 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. And then also, imports will be encouraged.
“So we don’t want to go into that. Let other Nigerians go and do it because we are not the only Nigerians here. Some Nigerians may even have more cash than us. They should bring that money from Dubai and other parts of the world and come and invest in our fatherland”.
Dangote said the company’s board decided against the steel investment to avoid the accusations of being considered monopolistic, in his battle with International Oil Companies (IOCs).
Recall that the Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, had accused IOCs in Nigeria of doing everything to frustrate the survival of Dangote Oil Refinery and Petrochemicals.
The accusations ranged from the deliberate frustration of the refinery’s efforts to buy local crude by jerking up the high premium price above the market price, thereby forcing it to import crude from countries as far as the United States, with its attendant high costs.
Speaking further, the business tycoon said, “This country has been having petrol queues since 1972. So 1972 till date is 52 years, and we are still having the same issue. Just the fact that we are ready and about to start, everybody is now up and about. Yes, but we know that what gives us a lot of joy is that we know that the majority of the population is with us. So we are not discouraged. We will continue what we are doing.”
