Economy
We’ve established strong platform for future growth, consolidation across Africa — Dangote Cement
Dangote Cement Plc. says it has established a very strong platform for future growth and consolidation of the company across the African Continent.
Mr Michel Puchercos, the Group Managing Director and Chief Executive Officer of the company, said this at the virtual Facts Behind the Figures (FBF) and Facts Behind the Sustainability Reports (FBSR) by the Nigerian Stock Exchange (NSE) on Wednesday in Lagos.
Puchercos said that at the end of 2019, the 2020 outlook was positive, considering the several plans for higher economic growth before the outset of COVID-19 pandemic.
“While the world faces economic recession and downturn, we are fortunate enough to have had a decent start in the year as reflected in our first half financial results, this is indeed humbling for me.
“H1 Group EBITDA was slightly up, supported by strong operating performance in Nigeria and Pan-Africa amidst COVID-19 challenges. EPS was up 6.3 per cent at N7.45. We are fortunate to have resilient H1 2020 results amid impact of COVID-19.
“Cement is an essential building material with no viable substitutes and the global cement industry continues to grow, driven by urbanisation, population growth, housing growth, industrialisation, and infrastructure development, especially, in emerging economies such as Africa, where we operate.
“We are presented with a huge opportunity and are strategically positioned to take advantage of these opportunities with our operational efficiency, product quality, modern facilities, and technology to leverage our unique economies of scale and know-how,” he said.
He also said that aside from regional and international institutions planning for higher growth, the Nigerian government had put plans in place for an increase in infrastructure spending, following the election cycle in 2019.
“Then the whole world was struck by COVID-19 pandemic which posed a significant threat to public health and overall economic conditions. We have all undoubtedly faced unprecedented challenges since. It is a social and economic phenomenon that is affecting us all professionally and personally.
“Some of the countries in which we operate, experienced full or partial lockdown earlier this year or had various levels of restrictions and curfews to protect public health and safety.
“Dangote Cement has placed an emphasis on the health and safety of team members, customers, suppliers, and communities at large as a core value.
“We have implemented several rigorous protocols in all our operations across the continent to support public health policies and ensure the highest level of protection of our stakeholders.
“I believe the future looks very bright for Dangote Cement. We have established a very strong platform for future growth and consolidation across Africa.
“We are on track to be a global leader in cement production, recognised for the quality of our products and services, and for the way we conduct our businesses.,” he said.
Guillaume Moyen, Chief Financial Officer of the company, said they paid over N1 trillion to share holders over the last seven years.
Moyen said that Dangote Cement had a focus on helping the Nigerian economy as it had taken Nigeria from a cement importing country to an exporter of cement.
“Dangote Cement has a sustained focus on helping the Nigerian economy and doing what it can to benefit the economy. Arguably our biggest achievement to date is taking Nigeria from being a big importer of cement to being self-sufficient and now an exporter.
“Dangote Cement has paid its taxes over the last 10 years and our VAT contribution in the last 10 years has been impressive. We are developing road infrastructure and durable concrete roads, which are major economic catalyst and hugely beneficial for the country’s transport sector.”
He also said that Dangote Cement had signed up to the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme; a public-private partnership (PPP) intervention.
“Participants are allowed to utilise the total cost (Project Cost) incurred in the construction or refurbishment of an eligible road as a tax credit against their future Companies Income Tax (CIT) liability,” he said.
According to Moyen; like the rest of the world, Sub-Saharan Africa will be affected by the ongoing Coronavirus pandemic and the International Monetary Fund (IMF) forecasts that it will contract by 1.8 per cent in 2020.
“H1 2020 numbers, which were resilient, bearing in mind the impact of COVID-19. Nigeria domestic volumes were up by 1.8 per cent despite the full lockdown at the end of March in key cities and states of Nigeria including Lagos, Abuja and Ogun states which are major markets for us.
“Revenues were up by 1.2 per cent owing to higher realised prices. EBITDA was only down by 3.1 per cent to N194.4 billion owing to higher energy costs and the adverse effects of COVID-19 on various dimensions of our operations,” he said.
He expressed belief that on a longer term, the African Continental Free Trade Area (AfCFTA) would give Dangote Cement the opportunity to leverage high quality limestone reserves and production assets to serve African markets still importing cement and clinker.
Mr Oscar Onyema, the Chief Executive Officer, NSE, said that the exchange was leveraging on digital technologies to ensure uninterrupted information about market activities.
Onyema said: “We have continued to remain resilient even in the face of the pandemic, leveraging various digital platforms and technology to ensure business continuity and uninterrupted information.
“We are pleased that Dangote Cement has chosen to use this platform to inform the market of its financial performances as well as its strategic and operational developments.
“Given that the market is driven by timely, regular information, your constant interaction with the market through this forum is vital and we encourage you to continue with this trend.
“We commend the board of the company for integrating sustainability into the core of their business operations,” he said.
Onyema commended the company for its efforts in curbing the spread of COVID-19 as well as its various interventions and donations to support national efforts to cushion the effects on the Nigerian populace.
He also pledged NSE’s continued emphasis on the importance of sustainable business practices in delivering value to their listed companies, investing publics to support Africa’s economic growth.
Also, Mr Bismarck Rewane, the Managing Director of Financial Derivatives Company, while giving his analysis said that the economy would spur slowly even though it was pandemic resilient.
Rewane said that of the 10 countries that Dangote Cement was represented in, only four would show positive growth this year in spite of the pandemic. He listed them as: Ghana, Ethiopia, Senegal and Tanzania.
“The average inflation rate across Africa is going to be about 8.6 per cent, the highest being Ethiopia with about 20 per cent and the lowest being Brazzaville with 1.1 per cent.
“The major exporters are South Africa with 31.2 per cent of total export, Nigeria is 28 per cent, Angola 21 per cent and Cote d’Ivoire 1.6 per cent.
“In terms of imports, major importers are : ,South Africa, 40 per cent; Nigeria 18 per cent, Kenya, 5.7 per cent and Cote d’Ivoire 2 per cent.
“This shows that there is a lot of economic activities in Africa and in the 54 countries, the bulk of activities lie with the top five or 10 and looking at the countries where Dangote Cement operates are the key drivers of the African economy, ” he said.
Eunice Sampson, Head of Sustainability, Dangote Cement, said that the company was strongly committed to its economic, environmental and social responsibilities.
Sampson said that these would ultimately translate to business sustainability, which therefore aligned with the UN’s Sustainable Development Goals (SDG’s).
“Our 2019 sustainability report is written in accordance with the reporting standards of the Global Reporting Initiative (GRI).
“Our approach to sustainability operationalisation is defined by our seven Dangote sustainability pillars which are: institutional, financial, operational, cultural, economic, social and environmental pillars,” she added. (NAN)
From Lateef Taiwo
The Coordinator, National Counter Terrorism Centre, Office of the National Security Adviser (NCTC-ONSA), Major General Adamu Laka, has reaffirmed the commitment of the Federal Government of Nigeria (FGN) to ending kidnap economy in the country.
General Laka stated this while briefing newsmen on the activities of the Multi-Agency Anti-Kidnap Fusion Cell in collaboration with the United Kingdom – National Crime Agency on Tuesday in Abuja.
He said the centre had officially launched the State Expansion Programme of the Multi-Agency Anti-Kidnap Fusion Cell, bridging a critical gap between national security coordination and state-level tactical response.
The National Coordinator noted that kidnapping in Nigeria was no longer a random crime, but an industry being ran by sophisticated and well-armed criminal networks that thrive on fear and fund violence through ransoms.
According to him, the programme was aimed at dismantling that economy by connecting national strategy with boots-on-ground action.
He said the fusion cell was created in partnership with the United Kingdom’s National Crime Agency (NCA) to facilitate high-profile rescues and breaking up kidnapping rings across the country.
The national coordinator noted that kidnapping in Nigeria was no longer a random crime, but an industry being ran by sophisticated and well-armed criminal networks that thrive on fear and fund violence through ransoms.
According to him, the programme was aimed at dismantling that economy by connecting national strategy with boots-on-ground action.
He said the fusion cell was created in partnership with the United Kingdom’s National Crime Agency (NCA) to facilitate high-profile rescues and breaking up kidnapping rings across the country.
General Laka noted the cell had played key roles in supporting rescue operations, disrupting kidnapping networks, and improving interagency coordination.
According to him, experience has shown that while national coordination is crucial, state-level engagement is also indispensable.
“Too often, real-time intelligence, local knowledge, and operational readiness reside with field commands, while national coordination can only succeed when it is informed by ground realities.
“This is the primary purpose of this programme – to close the gap between national-level coordination and state-level response. Essentially, to build direct operational linkages between the Cell and state commands across the country,” Laka said.
The Good Governance Campaign Forum (GGCF) has praised the Lagos State Government for launching the “Produce for Lagos” programme, describing this initiative and its ₦500 billion Offtake Guarantee Fund as a brilliant solution to the food insecurity challenges the nation faces.
The Forum issued this commendation in a statement signed by its Coordinator, Rahman Suleiman, on Wednesday, following the official unveiling ceremony of the program earlier in the week.
The program aims to transform Lagos’ food system and reduce the state’s dependency on external food sources, receiving positive recognition both within and outside the state for the Sanwo-Olu-led government’s efforts.
According to Suleiman, the initiative is timely and represents a pioneering collaboration between the Lagos State Government, the private sector, the Lagos Food Systems Infrastructure Company (LAFSINCO), Ekolog, and the Lagos Bulk Trading Company. He noted that this model is designed not only to enhance food production and logistics across the state but could also serve as a scalable framework for improving livelihoods and national resilience.
Suleiman shared insights from the Forum’s sampling of public opinion in Lagos and other states, indicating that people are pleased with the Lagos State Government’s strategic programs aimed at tackling hunger and starvation. He emphasized that a key component of the “Produce for Lagos” program is its data-driven approach, which will help address agricultural inefficiencies and strengthen value chains.
“Food security is a collective responsibility that we cannot afford to neglect as a nation,” Suleiman stated. “We are grateful to God for providing us with a leader like Sanwo-Olu, who is visionary, forward-thinking, and compassionate toward ordinary people.”
He commended Governor Sanwo-Olu for consistently setting benchmarks and leading by example in subnational governance. These achievements underscore the economic growth, infrastructural development, and urban planning efforts of the Lagos government.
“Governor Sanwo-Olu is a trailblazer; he has done exceptionally well, and we fully support his programs and policies. His work over the past six years speaks for itself,” he added.
Suleiman noted that this initiative, a partnership between the state government and the private sector, is expected to significantly boost agricultural production.
During the launch, Governor Sanwo-Olu also announced the deployment of a fleet of 150 cold and dry trucks—the largest of its kind—in partnership with the private sector.
Business mogul Tony Elumelu, who supported the project with ₦25 billion, stated that food security is crucial and expressed satisfaction with the collaboration between Lagos and other participating states.
Other prominent individuals at the event included Amir Kamel, Vice President of Afreximbank, and Michel Deleen, the Consul General of the Kingdom of the Netherlands, among other dignitaries.
… rejects the creation of new states
A prominent youth organization, the Youth Bureau, has urged the National Assembly to prioritize genuine restructuring of Nigeria, emphasizing regional autonomy and the establishment of State Police without further delay. This call comes as the legislature reviews the nation’s constitution.
The demand was articulated in the group’s Position Paper presented to the National Assembly Committee on Constitutional Amendment for the South-West Zone, which convened recently in Lagos.
In a statement signed by its Southern Coordinator, AbdulRahman AbdulRazaq, on Thursday in Lagos, the Youth Bureau also rejected calls for the creation of new states. The group warned that the Supreme Court’s judgment on local government contradicts their position, asserting that its implementation should be set aside. They believe only the State Government should have the authority to create local governments.
AbdulRazaq urged President Bola Ahmed Tinubu to prioritize comprehensive restructuring, as it is fundamental to effective governance and development. He encouraged the National Assembly Committee on Constitutional Amendment to make bold decisions that will have a positive impact on the populace.
He pointed out that the regional governments established in the late 1960s in Nigeria facilitated healthy governance and development, particularly under the Action Group government led by Chief Obafemi Awolowo in the Western Region. During that period, significant advancements were made in free education initiatives, healthcare infrastructure, industrialization, and overall infrastructure growth.
AbdulRazaq noted that the abolition of regional autonomy by the late General Aguyi Ironsi led to a unitary system of government, which resulted in excessive concentration of power in the central government, a lack of adherence to the rule of law, and restricted resource control and financial autonomy for the regions.
The Youth Bureau’s position paper includes the following demands and recommendations for the National Assembly Committee on Constitutional Amendment:
Our Demands
We urge the National Assembly Committee to consider the following:
- Genuine restructuring of the country based on regional autonomy.
- No need for the creation of additional states.
- The formation of State Police without further delay.
- Recognition that local government is a component of state government; the Supreme Court’s judgment on local government contradicts this principle, and its implementation should be set aside. Only the State Government should have the authority to create local governments.
Conclusion
We believe that a decentralized governance system founded on devolution and decentralization will ensure political and fiscal autonomy for its component units and promote equity among them. We urge President Bola Ahmed Tinubu to prioritize comprehensive restructuring and encourage the National Assembly Committee to make bold decisions that positively affect the citizenry.
Recommendations
- Decentralize governance in theory, practice, content, and character.
- Ensure equity among the component units.
- Guarantee political and fiscal autonomy for the regions.
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