The President of Dangote Group, Aliko Dangote, has announced that the company will no longer invest in Nigeria’s steel industry. The decision was made by the board to avoid allegations of monopolistic behavior.
At a press meeting with newsmen, Dangote revealed that the decision was taken after careful consideration and analysis of the market. The company has been looking at various opportunities to expand its operations, but ultimately decided against entering the steel industry.
“We wanted to make sure that we operate on a level playing field and don’t prevent others from competing in the industry,” a source said. “We believe that our presence in the cement industry has shown that we can operate alongside other players without stifling competition.”
The company’s decision comes as a surprise, given its significant investment in other sectors such as cement and sugar production. However, Dangote Group has always been committed to creating value by using local raw materials and turning them into products.
The company’s entry into the cement industry is often cited as an example of how it has added value to the economy by using local raw materials and creating jobs. In contrast, Lafarge was the only operator in the cement industry at the time of Dangote’s entry, but was not accused of monopolistic practices.
By abandoning its plans to invest in the steel industry, Dangote Group is signaling its commitment to fair competition and creating value for all stakeholders. The company’s decision is likely to have a significant impact on the steel industry, and it remains to be seen how other players will respond to this development.
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