…As Aliko dares marketers, rejects ₦1.5tr subsidy demand
A brewing face-off has emerged between the Chairman of the Ɗangote Group, Aliko Ɗangote and the Federal Government, as both sides traded words over the future of Ajaokuta Steel Complex and the politics of petroleum pricing.
Recall that Aliko Ɗangote recently cast doubt on the viability of reviving the Ajaokuta Steel Company Limited (ASCL), citing outdated technology and global competitiveness concerns. He argued that the plant “would not work” under present industrial realities, even while acknowledging that no nation can thrive without a steel backbone.
But the Minister of Steel Development, Prince Shu’aibu Abubakar, countered, insisting that Ɗangote’s skepticism would not derail the government’s revival agenda. He revealed that a fresh technical and financial audit of ASCL is underway, building on a 2018 report which found the plant in “robust condition” despite parts needing replacement and control systems requiring automation.
“The Federal Government remains resolute in its commitment to resuscitate Ajaokuta and build a competitive steel sector that supports Nigeria’s industrialisation and infrastructure growth”, Abubakar declared.
Meanwhile, Ɗangote Petroleum Refinery also locked horns with fuel marketers under the Depot and Petroleum Products Marketers Association of Nigeria, (DAPPMAN). The refinery accused the group of demanding an annual subsidy of about ₦1.5 trillion to offset coastal logistics costs of ₦75 per litre — a move Dangote says it will not entertain.
“DAPPMAN wants us to discount freight, NIMASA, NPA and other costs to sell at the same price as our gantry. That amounts to a subsidy regime which historically defrauded the nation. We will not bow to such demands”, the refinery stated.
Ɗangote alleged that its rejection of the subsidy request was behind recent “coordinated attacks” on the refinery, even as it maintained it has the capacity to meet Nigeria’s fuel demand, sustain exports, and stabilise the naira.
The twin disputes highlight Ɗangote’s growing influence at the centre of Nigeria’s industrial debate — simultaneously challenging the government’s steel revival optimism while resisting pressure from fuel marketers seeking price parity.
