Dangote Doubts Viability of Ajaokuta Steel Company

Aliko Dangote, President and CEO of Dangote Refinery, has expressed skepticism about the Ajaokuta Steel Company’s potential for success.

According to Dangote, while a steel industry is crucial for national development, Ajaokuta Steel Company faces significant challenges that make its success unlikely.

Dangote emphasized the need for industries to adapt to changing times, citing rapid advancements in technology and innovation. He likened attempts to revive Ajaokuta Steel to comparing outdated technology with modern advancements, stating that it’s impossible to succeed without embracing change.

The steel company, located in Kogi State, was built between 1979 and the mid-1990s but was never fully completed and has operated suboptimally for over two decades. Despite government interventions and agreements with foreign consortiums, the company has struggled to achieve optimal production levels.

Dangote highlighted the disparity between outdated industries and modern ones, using the example of Nigeria’s former Volkswagen manufacturing efforts compared to today’s Kia.

His comments have sparked debate about Nigeria’s approach to industrial development, with some questioning the wisdom of investing in outdated industries rather than embracing modern technologies and innovations.