Displaying items by tag: Nigeria

Nigeria: Domestic sales revenue and earnings have driven Dangote Cement’s financial performance in the first half of 2025. Its sales revenue grew by 17.7% year-on-year to US$1.35bn in the reporting period compared to US$1.15bn in 2024. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 41.8% to US$618m from US$435m. Sales and earnings grew sharply at home in Nigeria yet they fell elsewhere in Africa. Sales volumes of cement dropped by 4.1% to 13.4Mt from 13.9Mt, with a minor decrease locally and a sharper fall in other countries.

Arvind Pathak, CEO of Dangote Cement, said “While group volumes declined… [due] to softer demand in key markets, we remain encouraged by the growth in our export business. Export volumes from Nigeria increased by 18.2%, with 18 successful clinker shipments made to Ghana and Cameroon. This demonstrates the growing importance of our pan-African footprint and our ongoing commitment to regional trade and self-sufficiency.

By region, the group noted that its sales revenue in Nigeria rose sharply driven by price adjustments to keep up with inflation. Exports from national operations increased by 18.2% to 671,000t. 481,000t of this total was sent to Cameroon and Ghana. In the rest of Africa the company blamed lower sales volumes on post-election uncertainties in Senegal and South Africa, and liquidity constraints in Ethiopia due to delays in the approval of the national budget.

Finally, it was announced that company chair and founder Aliko Dangote has stepped down from the board of directors. It celebrated his, “pivotal and transformative role in shaping the company’s growth, success, and lasting legacy.”

Nigeria: BUA Cement’s sales revenue grew by 59% year-on-year to US$379m in the first half of 2025 from US$238m in the same period in 2024. Its profit after tax jumped to US$118m from US$22.4m. In its recent annual general meeting the company reported that it commissioned two new production lines at cement plants in Edo and Sokoto States in 2024 that increased its production capacity to 17Mt/yr from 11Mt/yr. It also started building a new 3Mt/yr line at Ososo in Edo State.

Nigeria: Lafarge Africa reported a 70% year-on-year rise in net sales to US$176m in the second quarter of 2025, driven by higher volumes supported by improved plant stability.

Operating profit grew by 153% year-on-year in the second quarter, with first-half growth at 144%, attributed to topline growth and operational efficiencies. Profit after tax rose by 248% year-on-year to US$55m in the quarter and by 352% in the first half of 2025, strengthened by the stability of the Naira, following heavy losses due to the currency depreciating in 2024.

CEO Lolu Alade-Akinyemi said “Following our impressive first-quarter results, second-quarter performance further showcases the strength of our team, market positioning, operational efficiency, cost management and dedication to value creation. We achieved excellent financial results in the second quarter of 2025, with net sales growth of 70%, operating profit up 153%, and profit after tax up by 248% year-on-year. With this strong result, we closed the first half of 2025 with sales and operating profit growth of 75% and 144% respectively; driven by volume growth, operational excellence, innovative product offerings and our proactive market Initiatives.”

Nigeria: Ebonyi State Governor Francis Nwifuru has established a 15-member committee to reactivate NIGERCEM, the country’s first locally-owned cement manufacturing company, located in Nkalagu.

He directed the committee to work with investors and shareholders to devise a plan for the immediate resumption of operations at the plant, which has been shut down for decades, and to submit its report within two weeks.

“Restoring the company was part of my campaign promise when I visited the area. I assured that the factory will be revived within my first tenure in office,” Nwifuru said.

Nigeria: BUA CEO Abdul Samad Rabiu said that the company has agreed with Dangote Group to freeze the price of cement for retailers involved in President Bola Tinubu’s Renewed Hope Agenda projects.

“We have decided that we are going to freeze the price of cement for any contractor that is involved with the Renewed Hope project.” Rabiu said. He added “There will be no increase for the foreseeable future.”

The Premium Times newspaper reported that it was not able to obtain a confirmation from Dangote Group about the price freeze.

Nigeria: A court in Lagos has found that it has jurisdiction to hear a suit filed by Strategic Consultancy against the sale of an 84% stake in Lafarge Africa by Holcim to Huaxin Cement. Lafarge Africa submitted the unsuccessful challenge to the court’s jurisdiction. This Day News has reported that the court also ordered the joinder of Netherlands-based Caricement and UK-based Associated International Cements as defendants.

Strategic Consultancy alleges that the sale bypassed minority shareholders, in violation of Nigerian law. Proceedings will continue on 11 June 2025.

Nigeria: Dangote Cement recorded a profit after tax of US$131m for the quarter ending 31 March 2025, up by 86% from US$70.5m in the same period of 2024. Revenue rose by 22% year-on-year to US$623m, driven largely by strategic pricing initiatives in Nigeria, where revenue grew by 54%. Gross profit rose to US$368m from US$262m, while profit before tax increased by 87% to US$195m from US$104m. Group earnings by interest, taxation, depreciation and amortisation (EBITDA) surged by 49% to US$289m.

The group’s cement volumes declined by 7% to 6.6Mt during the quarter, reflecting reduced demand and heightened inflationary pressures across key markets. However, export volumes grew by 21%, supported by eight clinker shipments to Ghana and Cameroon.

Nigeria: The Senate has directed the Bureau of Public Procurement to halt the planned sale of Lafarge Africa to Chinese producer Huaxin Cement on ‘national security and economic sovereignty grounds’, according to the This Day newspaper. Concerns have reportedly been raised that the deal could lead to capital flight, job losses and reduced regulatory oversight over a sector vital to national development.

Holcim, which owns an 84% stake in Lafarge Africa, initially announced the company’s sale to Huaxin Cement for US$1bn in December 2024. The transaction is set to complete in 2025, pending regulatory approvals.

Senator Shuaib Afolabi Salisu said “We cannot afford to wake up one day and realise that our cement industry, one of the backbones of our economy, is entirely in foreign hands. We must ensure that strategic assets like Lafarge Africa remain in the hands of those who have the country’s best interests at heart.”

Senator Olamilekan Adeola said “The company is about to be divested and the transaction has been shrouded in secrecy. What the motion is simply asking for is that we want this transaction to be as transparent as possible. By the time the eventual sale of this company is done, we will be fully satisfied that Nigeria’s economy will be protected.”

Nigeria: Dangote Cement has appointed Gbenga Fapohunda as its Group Financial Officer.

Fapohunda holds over 22 years of experience in financial management. He has worked for Dangote Cement since 2021 first as Regional Chief Financial Officer and then as the Acting Group Financial Officer from 2022. Before this he was the Executive Finance Director (West Africa) at Japan Tobacco International, Finance Director at United Parcel Service (UPS), Executive Finance Director at British American Tobacco. Earlier in his career, he was a manager within the financial advisory team at PricewaterhouseCoopers and worked at KPMG Professional Services within the Assurance Team. He holds a Doctor of Business Administration (Strategic Management) from the Rome Business School, a master’s of business administration (MBA) in finance from the London Business School and an undergraduate degree in accounting from the University of Lagos. He is a fellow of the Institute of Chartered Accountants of Nigeria.

Nigeria: Dangote Group has resumed construction of a 6Mt/yr cement plant in Itori, Ogun State, according to Business Insider Africa. Itori is 10km from Ewekoro, the site of a 3.9Mt/yr plant owned by Lafarge Africa. Construction of the plant is expected to be completed by November 2026. The company will also build ‘Nigeria’s largest seaport’ at the Olokola Free Trade Zone, also in Ogun State. The plant will have two lines and sits on 533 hectares of land.

Ogun State is already home to the 12Mt/yr Dangote Cement Plant in Ibese. Upon completion of the Itori project, the state’s total cement production capacity will reach 18Mt/yr. Dangote Cement reportedly has a production capacity of 52Mt/yr across Africa, with 70% of production in Nigeria.

Aliko Dangote said “We earlier on abandoned our vision of investing in the Olokola Free Trade Zone but, because of governor Dapo Abiodun’s policies and investor-friendly environment, we are back and will work with the government to return to Olokola. Plans are underway to construct the largest port in the country.”

He said that the nearly US$800m Itori cement plant should have been completed earlier, but was delayed due to opposition from former governor Ibikunle Amosun.