Why ‘Angry’ Dangote is Withdrawing His Investments in Nigeria 

Aliko Dangote, the chairman of Dangote Industries Limited, recently made headlines with his decision to stop his plans for entering Nigeria’s steel industry, a move that has stirred considerable discussion about his future investment strategies in Nigeria. 

Aliko Dangote’s journey with Dangote Industries has been marked by an aggressive expansion into various sectors, most notably cement, where his company became a dominant force. 

Just two months ago, the conglomerate expressed intentions to venture into the steel industry, aiming to fortify Nigeria’s economic landscape. However, during a recent address at his Lagos refinery, Dangote revealed a sharp reversal in these plans.

According to Dangote, the board has decided to abandon the steel venture. The reason? A significant concern about being labeled a monopolist, a tag that Dangote finds both unfair and detrimental. 

Aliko Dangote has also offered to sell his multibillion-dollar oil refinery to NNPC Limited, the state-owned energy company, according to a report by Premium Times. Amidst a heated dispute with one of the major equity partners and ongoing regulatory challenges in Nigeria, Dangote is ready to relinquish ownership.

In an exclusive interview with Premium Times, Dangote stated, “Let them (NNPC) buy me out and run the refinery the best way they can. They have labeled me a monopolist, which is both incorrect and unfair, but it’s okay. If they buy me out, at least, their so-called monopolist would be out of the way.”

He further highlighted the longstanding fuel crisis in Nigeria, noting that the refinery has the potential to address these issues. However, he expressed concerns that his involvement might be causing discomfort among certain parties. “I am ready to let go, let the NNPC buy me out and run the refinery,” Dangote added, indicating his willingness to step aside to facilitate a resolution to the fuel crisis.

The conversation around Dangote’s strategic decisions was further amplified when fellow billionaire Femi Otedola reposted his remarks which probably signaled a shared concern among Nigeria’s wealthiest about the investment climate in the country.

Here’s a closer look at some significant statements Dangote made, which reflect broader challenges and sentiments regarding business operations in Nigeria.

Avoiding the label of a monopoly

Dangote’s primary concern seems to be the potential monopoly label that could come with venturing into the steel industry. Despite the company’s history of diversification and adding value to local raw materials, Dangote expressed worries about being mischaracterized as a monopolist. 

This is particularly poignant given his comparison to Lafarge, a company that once held a dominant position in the cement market without such accusations. 

“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,” he explained.

Challenges in sourcing crude oil for the refinery

The difficulties in procuring crude oil have significantly impacted Dangote’s operations, highlighting Nigeria’s tarnished image on the international stage. 

Attempts to secure oil from Brazil and other countries have been met with high premiums or outright denials. These issues underscore the operational and reputational challenges facing Nigerian enterprises on the global market. 

Dangote lamented, “Nobody wants to sell to us, or they are demanding a premium,” indicating a deeper issue affecting not just his business but potentially others in the region.

Aliko Dangote has expressed his willingness to sell his multibillion-dollar oil refinery to NNPC Limited, the state-owned energy company. 

In an interview with Premium Times, Dangote stated that accusations of him being a monopolist are both incorrect and unfair, but he is prepared to step aside if NNPC acquires the refinery. 

He emphasized that his departure could help resolve longstanding fuel crises in Nigeria, suggesting that his presence might be a point of contention that hinders solutions.

Encouragement for other Nigerians to invest

Despite his setbacks, Dangote remains an ardent advocate for local investment. He called on other Nigerians, particularly those with substantial resources overseas, to bring their wealth back home and invest in the Nigerian economy. 

“Let other Nigerians go and do it. We are not the only Nigerians here. There are some Nigerians with more cash than us,” he stated, encouraging a more diversified investment landscape that doesn’t rely solely on his enterprises.