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•Eyes partnership with NGX to grow capital market
By Chinwendu Obienyi
To increase Nigeria’s capacity to export cement and enable more diversification and foreign exchange inflows for the economy, Dangote Cement Plc, yesterday, announced that it is currently strengthening its local production capacity efforts to meet future demand with its six million per annum cement plant in Itori, Ogun state.
This was even as the company expressed optimism and confidence in its strategy and growth prospects and stated that it is looking forward to fostering partnership with the Nigerian Exchange (NGX) Group on evolving ways to promote the growth of the Nigerian Capital Market (NCM).
Its new Chief Executive Officer, Arvind Pathak, stated this during a Delegation visit/Closing gong ceremony at the exchange house in Lagos. Pathak noted that with the successful completion of the company’s 0.4 million tonnes grinding plant in Ghana, the cement producer is on track to complete its 1.5 million tonnes grinding plant in Cote d’Ivoire.
“In addition, we are strengthening our local production capacity efforts to meet future demand with a 6Mt integrated cement plant in Itori, Ogun state. The Itori cement plant will increase Nigeria’s capacity to export cement, enabling more diversification and foreign exchange inflows for the economy”, Pathak said.
He added that the company have made great strides in its debt capital market journey, from the issuance of the company’s maiden N100 billion 5-year bond in 2020 to another landmark bond issuance, where it raised N116 billion.
According to him, the company’s revenue and EBITDA have grown by a compound annual growth rate of 19 per cent and 16 per cent, respectively while adding that over N1.9 trillion in dividends paid to its esteemed shareholders in the last 12 years.
The new CEO also reiterated that the cement company is focused on energy transition by increasing waste management solutions and leveraging the circular economy business model and added that it implemented a robust cost reduction strategy which includes increased use of Alternative Fuel to improve our energy mix and the use of Compressed Natural Gas (CNG) for our trucks in the rising AGO cost environment.
He said, “I am very optimistic about the future of Dangote Cement and confident in our strategy and growth prospects. I am focused on steering the business through the current volatile environment and inflationary pressure; and then driving the business towards its next phase of growth.
We look forward to fostering partnership with the Nigerian Exchange Group on evolving ways to promote the growth of the Nigerian Capital Market, while providing additional value to our unwavering shareholders”.
Earlier in his opening remark, the Chief Executive Officer, NGX, Temi Popoola, commended the performance of Dangote Cement Plc in its 2022 financial numbers and stated that the exchange is keen to continue working with more stakeholders in the industry.
He further explained that the ability to raise capital for smaller corporates will drive the growth of the nation’s economy, while adding that to unlock capital, there is a need to tap into retail investment.
According to him, NGX is strategically working with the government on attracting more listings to its platform among other objectives.
