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Following the negative impact of the novel coronavirus (COVID-19) on the global business community, Lafarge Africa says it will freeze capital expenditure (capex) this year. This is coming after the Federal Government said a phased re-opening of the economy would go ahead more slowly than planned and that it will impose targeted lockdown measures in areas that report rapid increases in coronavirus cases.
Speaking yesterday, Chief Executive Officer, Lafarge Africa, Khaled El Dokani said, the company would go ahead to freeze capex after the cement company forecast a drop in second-quarter sales as the coronavirus pandemic took a hit on demand.
According to El Dokani, major infrastructure projects have been put on hold, resulting into lower oil revenue due to a slump in oil prices, with the company’s sales volumes also hit by the country’s coronavirus lockdown.
The Nigerian unit of Franco-Swiss building materials group LafargeHolcim did not provide a sales figure for the second quarter even as sales for the corresponding period last year was N81.78 billion.
“COVID-19’s impact on the 2020 results cannot be reasonably estimated at this stage, but long-term prospects remain positive as the company has implemented cash-control measures”, El Dokani said.
