Economy
Dangote to scrap steel investment plan in Nigeria over allegations of monopoly
The President and Chief Executive Officer (CEO) of Dangote Group, Aliko Dangote, has announced that the company will abandon its plans to enter Nigeria’s steel industry to avoid being branded a monopoly.
Dangote made this disclosure in a statement on Saturday while addressing journalists at his refinery in Lagos.
The business tycoon explained that the company’s board decided to avoid the steel industry to prevent accusations of attempting to monopolize it.
Furthermore, he noted that pursuing this venture would involve encouraging the importation of raw materials from overseas, which contradicts the firm’s core mandate.
“You know, about doing a new business which we announced, that is, the steel.
“Actually, our own board has decided that we shouldn’t do the steel because if we do the steel business, we will be called all sorts of names like monopoly. And then also, imports will be encouraged. So we don’t want to go into that,” he said.
Dangote, however, urged other Nigerians to invest in the industry to help boost the country’s economy.
“Let other Nigerians go and do it. We are not the only Nigerians here. There are some Nigerians with more cash than us. They should bring that money from Dubai and other parts of the world and invest in our own fatherland,” the CEO added.
In June, Nairametrics reported that Aliko Dangote said his company plans to delve into steel production in the near future stating that he wants to ensure that every steel used in West Africa comes from Nigeria.
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.
“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”, Dangote said at that time.
Nigeria has tried unsuccessfully to become a leader in the steel manufacturing industry with a handful of failed projects like the Ajaokuta steel plant, Delta Steel Company, Osogbo and Jos rolling mills even under government and private ownership.
Like the oil refineries, the federal government under different administrations has spent billions trying to put the local steel plants to work but has been unsuccessful.
The administration of President Bola Tinubu had promised during the campaigns to ensure steel production starts in the multi-billion-dollar Ajaokuta steel complex.
Dangote investment in the industry might have been a game changer, attracting more capital and economic opportunity to the sector.
However, with the recent revelation and decision from the African richest man, the steel industry may still linger in the shadow of under investment for years to come.
The Nigerian naira depreciated slightly against the United States (US) dollar, trading at N1,343.6398 per dollar at the Central Bank of Nigeria (CBN) official foreign exchange window on Friday, 17th April, 2026.
According to the data on the CBN’s official platform, the naira traded at the Nigerian Foreign Exchange Market (NFEM) rate of N1,343.6398/$per dollar and closed at N1,342.5000 per dollar.
When compared with the previous trading rate, the Nigerian currency traded at N1342.3037 on 16th April, 2026. With this, the Nigerian currency depreciated slightly by a minimum of N1.3.
At the parallel market, the naira-to-dollar exchange rate for the buying rate didn’t change while the selling rate increased by N3 when compared to that of the previous trading rate.
According to Aboki FX , the Naira-to-dollar exchange rate at the black market on Friday, 17th April, 2026, was N1,395 and N1,405 per dollar for buying and selling rate respectively.
The Central Bank of Nigeria on Friday unveiled the Nigerian Overnight Financing Rate (NOFR) as a new benchmark for the country’s money market, a move aimed at boosting transparency and improving the effectiveness of monetary policy.
The announcement was made in a statement by the bank’s Acting Director of Corporate Communications, Hakama Sidi-Ali, who noted that the initiative was developed in partnership with the Financial Markets Dealers Association to strengthen Nigeria’s financial system.
According to the apex bank, the new benchmark is designed to bring Nigeria in line with global standards for short-term interest rates, while enhancing price discovery and ensuring more consistent pricing across money market instruments.
The CBN explained that NOFR is expected to improve monetary policy transmission, encourage financial innovation, and boost investor confidence, while also reinforcing risk management practices within the financial system.
With the introduction of NOFR, Nigeria joins other economies that use similar benchmarks, such as SOFR in the United States, SONIA in the United Kingdom, €STR in the Eurozone, TONA in Japan, and JIBAR in South Africa.
The bank disclosed that the rate followed a stakeholder engagement held on February 27, 2026, where market participants adopted the framework before receiving regulatory approval. NOFR is now operational, with the CBN serving as its administrator and responsible for ensuring transparency, governance, and regular publication.
Further details provided in an FAQ document show that NOFR is a risk-free benchmark reflecting the cost of overnight secured lending in the interbank market. Unlike estimates, it is based strictly on actual transactions, improving accuracy and credibility.
The rate is published daily at 10:00 a.m. on the next business day and applies only to naira-denominated overnight secured interbank transactions that meet specified criteria. It is calculated using a volume-weighted trimmed mean approach to remove outliers and ensure reliability.
Where there is insufficient transaction data, the previous day’s rate will be retained and clearly disclosed to maintain consistency.
The CBN clarified that NOFR is not a replacement for key monetary policy tools such as the Monetary Policy Rate but will serve as a reference for pricing financial instruments, contracts, and some corporate loans.
For investors, the benchmark is expected to improve valuation, pricing, and risk management of naira assets, thereby deepening activity in the domestic money market.
While retail customers may not see immediate changes in loan or savings rates, the bank noted that increased transparency from the new system should strengthen overall confidence in Nigeria’s financial sector.
On governance, the CBN stated that any adjustments to the rate would only occur in cases of significant errors and would be fully disclosed, adding that the methodology will be reviewed at least once a year to keep it aligned with market realities.
The Nigerian equities market sustained its bullish momentum on Thursday, delivering a fresh massive gains of N1.663 trillion to investors as market capitalization surged beyond the N136 trillion mark.
At the close of trading, total market value rose by 1.23 percent to N136.435 trillion, up from N134.772 trillion recorded at the start of the session.
In the same vein, the All-Share Index (ASI) advanced by 2,583.61 points, representing a 1.23 percent increase, to settle at 211,901.02, compared to 209,317.41 in the previous trading day.
The market’s Year-To-Date (YTD) return strengthened further to 36.17 percent, while sentiment remained positive as 45 stocks posted gains against 20 decliners.
Leading the gainers’ table were Trans-Nationwide Express and Guinea Insurance, both appreciating by 10 per cent to close at N5.50 and N1.21 per share, respectively. Aradel rose by 9.99 percent to N1,547.50; Ecobank Transnational gained 9.97 percent to close at N61.20, while Daar Communications climbed 9.93 percent to N1.66 per share.
On the losers’ side, Ikeja Hotel topped the chart with a 9.73 per cent decline to N33.40. WAPIC followed with an 8.77 per cent drop to N2.60, while CAP shed 8.61 per cent to close at N95 per share. International Energy Insurance and McNichols also recorded losses of 8.18 per cent and 5.82 per cent, respectively.
Trading activity, however, slowed during the session. Total volume traded declined by 17.19 percent to 584.96 million shares valued at N34.76 billion across 45,559 deals.
Zenith Bank emerged as the most actively traded stock, accounting for 61.74 million shares worth N7.60 billion, representing 10.55 per cent and 21.86 per cent of total volume and value, respectively.
The latest performance extends the market’s winning streak to four consecutive sessions, following a strong N2.28 trillion gain recorded on Wednesday.
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