Economy
Aggressive Dividend Policy Exposes Dangote Cement to Liquidity Risk—Moody’s
By Dipo Olowookere
One of Africa’s leading cement makers, Dangote Cement Plc, could find itself in a liquidity crisis, a renowned credit rating agency, Moody’s Investors Service, has warned.
This warning was contained in a statement issued by the global firm on Thursday on the completion of a periodic review of the ratings of Dangote Cement Plc.
Dangote Cement is a company owned by a Nigerian, Mr Aliko Dangote, who is believed to be the richest man in Africa. He is the chairman of the company.
In the statement issued by Moody’s today, it was stressed that the aggressive dividend policy of the cement manufacturer could backfire.
For the 2019 financial year, Dangote Cement paid its shareholders a dividend of N16 per unit and a year earlier, the company paid the same amount.
Dangote Cement’s shares are traded on the Nigerian Stock Exchange (NSE) and Business Post gathered that at the close of trading today, the company’s equities were flat at N134.70 per unit.
“Dangote Cement’s high reliance on short term debt funding and aggressive dividend policy exposes the company to liquidity risk,” Moody’s said in the statement on Thursday.
However, it pointed out that the cement firm’s B1 corporate family rating (CFR) is supported by its strong market presence in Nigeria and other African markets in which it operates.
According to the rating agency, Dangote Cement’s “strong business profile benefits from its dominant market position in Nigeria and high gross margins of above 60 per cent.”
“Credit metrics remain conservative with low debt /EBITDA of around 1.0x and high-interest coverage above 5.0x, supported by prudent financial policies that ensure credit metrics remain strong through operating and project build cycles,” it added.
It stated further that the B1 rating, which is one notch above Nigeria’s B2 bond rating, considers the serviceability of local currency debt obligations and company’s strong intrinsic credit quality balanced against meaningful linkage and limited ability to withstand stress at the Nigerian sovereign or macroeconomic level.
But Moody’s emphasised in the statement that the periodic review on Dangote Cement “did not involve a rating committee.”
A look at the dividend history of Dangote Cement by Business Post in the last 10 years showed that in 2010, the company paid N4.25 (N2 interim and N2.25 final). In 2011, it paid N1.25 interim and one for 10 bonus share.
From 2012, it adopted the payment of dividend once a year and in that year, it paid N3 and then increased it to N7 in 2013 and slashed it to N6 in 2014 and then up to N8 in 2015, N8.50 in 2016, N10.50 in 2017, N16 in 2018 and N16 in 2019.
In the first six months of 2020, Dangote Cement recorded a profit after tax of N126.1 billion compared with the N119.2 billion achieved in the first six months of 2019.
Earlier this year, Dangote Cement issued N100 billion bond to investors and the sale was oversubscribed. The papers were sold under the N300 billion bond programme the company.
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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