By Dipo Olowookere
Chairman of Cement Company of Northern Nigeria (CCNN) Plc, Mr Abdulsamad Rabiu, has said the company was now in control of the cement market in North West Africa.
Mr Rabiu, while addressing shareholders at the company’s Annual General Meeting (AGM) last Thursday in Abuja, said the firm was able to dominate the market over there as a result of its merger with Kalambaina Cement, which has increased the installed capacity to two million metric tons per annum.
He said this combination also helped the cement manufacturer deliver an impressive 2018 financial year, which led to the payment of N5.25 billion as dividend for the fiscal year, translating to a dividend payout of 40 kobo per share, more than the N1.57 billion paid in the 2017 financial period.
“The company recorded its highest domestic exports sale during the year. This was facilitated by the additional output from the enlarged entity.
“In 2019, we hope to have the full combined capacity of the two entities.
“With the new capacity, CCNN is now the dominant player in its home market of North West Africa,” Mr Rabiu, who is also the Chairman of BUA Group, said at the meeting.
Business Post reports that one of the main rivals of CCNN in the cement industry is Dangote Cement and both are fighting for the control of the market by coming up with different strategies.
But Mr Rabiu believes that CCNN will continue to expand its presence at the market by “taking advantage of the proximity to the neighbouring West African borders, which has opened a new window for the export operations and revenue generation in foreign exchange.”
He said the merger between CCNN and Kalambaina Cement has led to the “introduction of new technology, reduction in operational costs and increase in the number of transport fleet.”
According to him, this reflected in the revenue generated by CCNN in the 2018 financial year, which rose to N31.7 billion from N19.6 billion in 2017, with the profit after tax improving to N5.9 billion in 2018 from N2.9 billion in 2017.
He said the company will continue to deliver value to its shareholders, assuring them that the 2019 financial year would be better than the previous.
