Dangote Targets Steel Manufacturing as Next Investment Venture

By Adedapo Adesanya

Africa’s richest man, Mr Alike Dangote, is setting his sights on the steel market as a possible venture in the future after successful inputs in food, cement, and energy.

He stated this during an interview at the ongoing Afreximbank Afro-Caribbean Trade & Investment Forum in Nassau, The Bahamas.

When asked if he is taking a break after the refinery, he noted that the next venture after the refinery project would be in steel manufacturing and ensure that all steel products used in West Africa come from Nigeria.

“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.”

“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,” he said.

This could be a huge investment for the billionaire as Nigeria has a huge iron-ore deposit, a critical raw material in steel production, largely found in Kogi state.

Despite the local material wealth, 70 per cent of Nigeria’s yearly steel demand of around 10 million metric tonnes, is imported.

In March, the current Minister of Steel Development, Mr Shuaibu Audu stated that Nigeria spends around $4 billion on steel imports annually despite having around 74 steel plants and fabricators across the country.

“All the raw materials and other natural deposits that are used to produce steel like at the Ajaokuta and other steel companies in the country can be refined here.

“The facilities at the NMDC [National Metallurgical Development Centre] can test those mineral resources; refine and make them of better quality.”

Mr Dangote also encouraged African leaders to take agriculture and solid mineral development seriously lamenting the fact that food imports cost the continent dearly by increasing unemployment and poverty.