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Dangote Cement Sales in Nigeria up by 14% as Pan-African Volume Drops 4%

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**Invests $3b on Plants, Grinding Terminals

By Dipo Olowookere

Group Chief Executive Officer of Dangote Cement, Mr Joe Makoju has revealed that the company has invested a whopping $3B to build manufacturing plants and import/grinding terminals across Africa.

The company’s operations, according to Mr Makoju are in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.7Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).

For the second quarter under review, Mr Makoju also revealed that while total Nigeria sales volume went up by 13.9 percent to 7.8Mt, Pan-African volume reduced by 3.9 percent, mainly due to shutdown in Tanzania.

In all, the company, which employed 27,952 workers in Nigeria in 2017 had its revenue increased by 16.9 percent and its earning per share also increased by 3 percent to N6.60 kobo per share for the second quarter, ended in June 30, 2018.

Mr Makoju said, “Our first-half performance was very strong and driven by an excellent recovery in Nigeria, where our sales volumes increased by nearly 14 percent and revenues rose by more than 18 percent. Pan-African operations saw a slight fall in volumes but both revenues and EBITDA increased because of better pricing and currency conversion effects.

“In addition, we achieved the largest-ever issuance of Commercial Paper by a Nigerian company when we issued N50 billion Series 1 & 2 Notes at the end of June, with a discount rate that reflected the strength of our company and its excellent credit ratings.

“Of course, our strong performance has been overshadowed by the tragic and heartbreaking events in Ethiopia. I would like to pay tribute to my colleagues Deep Kamra, Beakal Alelign and Tsegaye Gidey and offer our sincere condolences to their families.”

It would be recalled that the Chairman of Dangote Cement, at the company’s recently concluded annual general meeting (AGM), Mr Aliko Dangote attributed the 31 percent increase in the company’s revenue, of N805.6 billion, for the 2017 financial year, to its pan African operations growth which also recorded a significant increase in revenue from N195 billion to N258.4 billion in 2017.

He said: “Pan African operations increased volumes by 8.4 percent, with Ethiopia, Senegal, Cameroon and South Africa all performing strongly and close to their operating capacity”

Noting that the company experienced some challenges in operating in sub-Saharan Africa, Dangote said the Management responded in robust fashion and benefited from “…the diversity we have created across our business and because of our local knowledge and attitudes towards doing business in neighbouring countries in Africa.”

Explaining the rationale behind the success recorded by the Dangote Cement’s revenue, the acting Group Chief executive, Mr Joe Makoju said “… the increase was helped by our decision to increase our use of local coal in Nigeria and that also helped to improve our fuel security, maintain production uptime and it reduced our need for foreign currency. We source coal from our parent company, Dangote Industries and from another Nigerian supplier, and we are very happy with the way this has worked out for us because it has enabled us to phase out the use of expensive low pour fuel oil in our kilns and also to reduce our use of imported coal.”

On the future growth plans for the Group, Mr Makoju said “…As it stands, I think we will focus on building new grinding plants along the coast of West Africa, and ensure we have clinker export facilities in Nigeria. We are looking at the possibility of two new lines in Nigeria, perhaps by the end of 2020 and its likely these will be in Edo state and Obajana, with a combined capacity of 6Mta.”

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Economy

MTN Offers N50bn Commercial Paper to Investors

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MTN Subscribers

By Aduragbemi Omiyale

Commercial paper worth N50 billion has been offered to investors by a leading telecommunications firm in the country, MTN Nigeria Communications Plc.

The offer is only open for subscription for a day, according to details of the exercise obtained by Business Post.

Subscription for the commercial paper opened on Monday, December 23, 2024, and closed today, Tuesday, December 24, 2024.

MTN Nigeria said it went for the N50 billion commercial paper sale to raise funds for its short-term working capital requirements.

It offered the paper in two series of 15 and 16, the former taking a 180-day tenor and the latter a 270-day tenor.

MTN Nigeria sold the six-month paper at a discount rate of 24.2162 per cent and the nine-month paper at 23.8780 per cent.

The exercise is under MTN Nigeria’s N250 billion commercial paper programme. According to the Nigerian Communications Commission (NCC), MTN Nigeria boasts 80,376,120 subscribers across the country and controls a market share of 51.09 per cent as of October 2024.

The telco was the first to launch a 5G network in Nigeria, providing coverage in key cities in the six geopolitical regions with population coverage of 12.7 per cent.

MTN Nigeria has approximately 45.3 million active data users and 2.8 million active mobile money wallets, driving digital and financial inclusion in a young and fast-growing population.

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Economy

I Stand by My Economic Reforms—Tinubu

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tinubu democracy day speech

By Adedapo Adesanya

President Bola Tinubu has again said he has no regrets about removing the petrol subsidy in May 2023 and introducing other reforms in the country.

“I don’t have any regrets whatsoever about removing the petrol subsidy. We are spending our future, we were deceiving ourselves, that reform was necessary,” the President told selected reporters during a pre-recorded media chat on Monday night at his Bourdillon residence in Ikoyi, Lagos State.

President Tinubu said that the removal of the petrol subsidy last year increased competition within the sector and that the pump price of petrol gradually crashed.

“The market is being saturated. No monopoly, no oligopoly, a free market economy flowing,” he said.

President Tinubu, who took office in May 2023, has always hammered on the need for the reforms, despite calls from several quarters to alleviate increased hardship brought on by his policies.

Business Post reports that he defended the policies recently at the 2025 Budget presentation as he has done on a number of occasions, including at a conference in Riyadh, Saudi Arabia earlier this year.

He also said he does not believe in price control and he won’t go that path.

“I don’t believe in price control, we will work hard to supply the market,” he said.

He also said it was about time to bring the governance down, adding that, “we will try.”

The President said the country will be looking at agriculture, export incentives, harnessing the marine ecosystem; bringing affordable transportation.

“We will bring it down gradually,” he added.

He continued, “The key is to produce more for local consumption and exports while reducing imports. We’re supporting farmers with low-interest loans and improving security to encourage agricultural activities.

“Mechanised farming is being prioritised, with thousands of tractors set to arrive in the country. In addition, we’re incentivising local drug manufacturing and harnessing our marine ecosystem for economic growth.

“By addressing these sectors, we aim to bring down costs and stimulate the economy,” he noted.

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Economy

Unlisted Securities Market Loses 1.10% to Christmas Profit-Taking

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Unlisted Securities Market

By Adedapo Adesanya

There was a 1.10 per cent depreciation at the NASD Over-the-Counter (OTC) Securities Exchange on Monday, December 23 as investors booked profit ahead of the Christmas break.

This was largely influenced by the decline suffered by three securities on the trading platform, with FrieslandCampina Wamco Nigeria Plc losing N3.84 to sell for N40.00 per share compared to the previous session’s N43.84 per share.

Further, Central Securities Clearing System (CSCS) lost N1.50 to close at N22.00 per unit versus the preceding trading day’s N23.50 per unit, and First Trust Microfinance Bank moderated by 2 Kobo to 34 Kobo per share from 36 Kobo per share.

Conversely, Okitipupa Plc appreciated by N3.27 to end at N35.99 per unit compared with last Friday’s closing price of N32.72 per unit, Geo-Fluids Plc improved its value by 32 Kobo to sell at N4.20 per share versus the previous session’s N3.88 per share, and UBN Property Plc recorded an 11 Kobo appreciation to trade at N2.00 per unit, in contrast to the preceding trading day’s value of N1.89 per unit.

When the bourse ended for the session, the market capitalisation lost N12 billion to settle at N1.031 trillion compared with last Friday’s N1.043 trillion and the NASD Unlisted Security Index (NSI) gave up 33.49 points to end the day at 3,009.78 points as against 3,043.27 points it recorded at the previous session.

Yesterday, the volume of securities traded at the bourse significantly rose by 628.8 per cent to 8.6 million units from the 1.2 million units of the previous session, but the value of securities transacted by the market participants went down by 22.5 per cent to N39.6 million from N51.2 million, as the number of deals increased by 158.3 per cent to 31 deals from the 12 deals recorded in the preceding trading day.

At the close of business, Geo-Fluids Plc was the most traded equity by volume on a year-to-date basis with 1.7 billion units worth N4.0 billion, trailed by Okitipupa Plc with 752.4 million units valued at N7.8 billion, and Afriland Properties Plc with 297.7 million units sold for N5.3 million.

The most traded equity by value on a year-to-date basis was still Aradel Holdings Plc with 108.7 million units valued at N89.2 billion, followed by Okitipupa Plc with 752.4 million units sold for N7.8 billion, and Afriland Properties Plc with 297.7 million units worth N5.3 billion.

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