Alhaji Aliko Dangote, Africa’s wealthiest individual, has announced plans to enter the steel production industry with the goal of ensuring that all steel used in West Africa is sourced from Nigeria.
Dangote made this statement during an interview at the ongoing Afreximbank Afro-Caribbean Trade & Investment Forum in Nassau, The Bahamas.
When questioned about his future plans following his refinery project, Dangote revealed that his next major venture would be in steel manufacturing. He aims to guarantee that all steel products utilized in West Africa are produced in Nigeria.
Additionally, he urged African leaders to prioritize agriculture and solid mineral development, highlighting the detrimental impact of food imports on the continent, which exacerbates unemployment and poverty.
Dangote emphasized the need for Africa to focus on agriculture and solid minerals, stating, “What we need to do that is missing is actually to concentrate and pay more attention to agriculture and solid minerals. I don’t like people coming to take our solid minerals to process and bring the finished product. We should try and industrialise our continent and take it to the next level.”
Regarding his relentless work ethic, Dangote remarked, “I told somebody we are not going to take any break. What we are trying to do is to make sure at least in West Africa, we want to make sure that every single steel that we use will come from Nigeria.”
Nigeria has long sought to establish itself as a leader in the steel manufacturing industry but has faced numerous challenges and failed projects, such as the Ajaokuta steel plant, Delta Steel Company, Osogbo, and Jos rolling mills, even under both government and private management.
Various administrations have invested billions in attempts to operationalize local steel plants without success. President Bola Tinubu’s administration has promised to initiate steel production at the multi-billion-dollar Ajaokuta steel complex.
The federal government allocated approximately N4.45 billion for the plant in the 2024 budget and hopes to attract around N35 billion from private investors to finally operationalize the facility. However, Steel Development Minister Shuaibu Audu has estimated that reviving the plant could cost between $2 billion and $5 billion.
According to the National Steel Raw Materials Exploration Agency (NSRMEA), Nigeria’s total steel consumption averages about 10 million metric tonnes annually, with 70% of this being imported.
The current Minister of Steel Development has stated that Nigeria spends around $4 billion on steel imports each year, despite having approximately 74 steel plants and fabricators across the country.
Nigeria possesses significant iron-ore deposits, a crucial raw material for steel production, notably found in Kogi state.
