Nigeria’s billionaire investor, Mr. Femi Otedola has said his decision to invest in Dangote Cement Plc is on the backdrop of its potential to generate foreign exchange (FX) for Nigeria.
Otedola in an official statement giving reasons for his recent acquisition of shares in Dangote Cement,noted that the move was a strategic investment underscores his confidence in Dangote Cement’s potential to generate foreign exchange for the country and his dedication to supporting businesses that contribute to Nigeria’s economic resilience.
Otedola’s significant acquisition of shares in Dangote Cement, the only cement company in Nigeria with two export terminals, with a combined export capacity of 8 million tons per annum.
As Sub-Saharan Africa’s largest cement producer, Dangote Cement boasts an annual production capacity of 51.6 million tons across ten countries. This extensive footprint not only highlights the company’s dominance in the cement industry but also its crucial role in driving economic growth across the region.
The recent expansion of Dangote Cement, including the new 6 million-ton plant in Itori, Ogun State, enhances its export capacity and emphasizes the company’s contribution to Nigeria’s economic diversification. “Dangote Cement’s export capabilities and extensive operations across Sub-Saharan Africa are essential for regional economic integration and growth,” Otedola commented. “My investment is a testament to my confidence in its potential to propel Nigeria’s and Africa’s industrial and economic development.”
Otedola’s investment aligns with his vision of long-term wealth preservation and the belief that shareholders should be the primary beneficiaries of a company’s success. “Dangote Cement’s unique position with two export terminals offers a substantial opportunity to earn foreign exchange, crucial for Nigeria’s economy. This, along with the company’s pan-African presence, makes it an ideal investment choice,” said Otedola.
Dangote Cement’s track record of dividend payments, exceeding N2.1 trillion in recent years, and its commitment to sustainable business practices resonate with these principles. Otedola’s investment strategy prioritizes companies that are well-managed, have strong governance, and operate under the principle that no individual should be larger than the company.
“In my investment decisions, I focus on long-term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success,” Otedola stated. “Companies like Dangote Cement, which consistently deliver value to their shareholders, are fundamental for sustainable economic growth. My investment reflects my belief in its capacity to continue providing significant returns and my commitment to businesses that prioritize their shareholders.”
The evolving regulatory landscape in Nigeria, emphasizing Environmental, Social, and Governance (ESG) compliance, complements Otedola’s investment criteria. Companies like Dangote Cement, adhering to these principles, are more likely to ensure transparency, accountability, and long-term value creation.
“Dangote Cement’s strong corporate governance and impressive ESG compliance track record make it an ideal investment choice. It represents the type of company that not only contributes to Nigeria’s industrial strength but also aligns with my vision for ethical and sustainable business practices,” added Otedola.
Otedola’s investment in Dangote Cement is a strategic decision that highlights his belief in the company’s ability to positively impact Nigeria’s economy and his commitment to fostering a culture of responsible investment. It serves as a call to action for Nigerians to invest in companies that offer financial returns and play a crucial role in the nation’s economic growth and stability.
The billionaire was buying shares of Dangote Cement according to a reliable source.
The share price gained 53.9per cent last week and is already up 10per cent today trading at N592.5. The share price was just N350 two Fridays ago.
Dangote Cement is on the path to being Nigeria’s first company to achieve a N10 trillion market capitalization. It is currently worth N9.1 trillion