Dangote to Build Export facilities in Lagos, P’Harcourt

economic woesAliko Dangote, chief executive officer of Dangote Group, gestures after signing a factory construction contract with Sinoma International Engineering Co. Ltd. in Lagos, Nigeria, on Wednesday, Aug. 26, 2015. Photographer: Tom Saater
  • Dangote to Build Export facilities in Lagos, P’Harcourt

Aliko Dangote, the Chairman of Dangote Cement, on Monday said his company will build export facilities in Lagos and Port Harcourt this year and contribute $700 million in foreign exchange to the Nigerian economy.

Dangote, who was at the company’s 10th Annual General Meeting in Lagos, said cement sales from Nigerian plants increased by 11.4 percent to 14.2 million metric tonnes in 2018.

While sales from other African countries added another 9.2 million metric tonnes with strong performances from Cameroon, Senegal and Zambia. The weak performance recorded in Ethiopia and Tanzania (gas turbines) in 2018 is expected to turn around in 2019.

Dangote said: “We expect these two large plants to improve their performance in 2019, further increasing profitability.

“As an organisation, we are focused upon improvement in all areas and I wish to pay tribute to all our staff for their constant efforts towards achieving the vision of our board and executive team.”

The richest black man alive said Dangote Cement will be operating in at least 18 African countries soon.

He also stated that the capacity of Obajana Plant would be increased to 16 million metric tonnes, making it one of the largest cement plants in the world.

“We have a lot of ongoing projects aimed at increasing capacity and by next year, we will not only export one million tonnes as we normally do now, we will be servicing both the domestic and other African countries from Nigeria. We will have a capacity of about eight million tonnes to export and that will generate a foreign exchange of about $700m into the country.”

He added, “Later in 2019, we will open export facilities in Lagos and Port Harcourt that will enable us to export clinker, initially to our grinding plants we are building in West Africa. Not only will these generate useful foreign currency for Dangote Cement to support other expansion projects outside of Nigeria, they will also help to increase the output of our Nigerian plants.

“They will also help to improve job creation and increase prosperity in Nigeria, something of which all stakeholders can be proud of.”

The chairman noted that 2018 was the company’s most successful year ever, with 7.4 per cent growth in sales to 23.5 million tonnes and 11.9 per cent growth in revenues to N901.2 billion.

The company’s shareholders at the AGM approved a dividend payment of N16 per 50 kobo ordinary share.

Dividend rose by 52.4 per cent from N10.50 in 2017 to N16 in 2018.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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