Dangote Cement approves N45 dividend, targets 80m tonnes

Shareholders of Dangote Cement Plc have approved a final dividend of N45 per ordinary share for the financial year ended 31 December 2025, bringing the total payout to an unprecedented N753.8bn.

The approval came as the company reaffirmed its long term strategy of expanding across Africa through aggressive investments in production capacity, cleaner energy, and operational efficiency.

The dividend was approved at the company’s 17th Annual General Meeting in Lagos, where the Chairman of Dangote Cement Plc, Emmanuel Ikazoboh, said the firm was positioning Africa for self sustaining industrial growth by leveraging local resources and strategic investments.

The National President of the Association for the Advancement of the Rights of Nigerian Shareholders, Dr Faruk Umar, lauded the group’s overarching focus on continental independence.

Umar said, “The key thing for this year’s AGM is transforming Africa. You will notice that our founder is trying to ensure he positions Africa to be the source of our own wealth, using our own wealth to take care of our own business and activities, rather than depending on investors from other parts of the world coming to help us build our continent.

“This 50 per cent dividend increase may look like a rumble, but there is a lot of strategy that has gone behind it. Some of the most important strategies have focused on exports. We have grown in areas where we previously weren’t able to reach out because of past challenges. More things are in the pipeline, which are progressively getting implemented. We expect that we can continue the momentum that we have built over the last year into the forthcoming years as well.”

The company noted it was also intensifying efforts to improve operational efficiency by reducing transportation and energy costs through investments in compressed natural gas powered trucks and alternative fuels.

Ikazoboh added that Dangote Cement was expanding its use of alternative fuels by converting waste into energy to power its manufacturing operations.

Speaking on the company’s growth outlook, the Group Managing Director, Arvind Pathak, stated that Dangote Cement’s performance was underpinned by deliberate investments in exports, logistics, and operational efficiency.

Pathak noted that Dangote Cement planned to increase its production capacity from 55 million tonnes to 80 million tonnes by 2030, in line with the Dangote Group’s Vision 2030.

“We intend to grow from 55 million tonnes to 80 million tonnes,” he said.

A shareholder and respected financial analyst, Mr Nornah Awoh, commended the board for its financial discipline, citing the deployment of 3,000 CNG trucks and a 50 per cent reduction in bank borrowings as key drivers of profitability.

Awoh said, “First of all, you have to commend the company because we now have 3,000 CNG trucks being used rather than hiring them, which is improving our revenue. Secondly, the company has drastically reduced its loans; only half of the loan is left to be collected and paid to banks, reducing borrowings by 50 per cent. Another thing is that the first quarter is 101 per cent higher than last year, so you can see what we are expecting.

“They have paid us a 45-naira dividend. If this trend continues to the fourth quarter, we expect nothing less than a 60-to-70-naira dividend. Additionally, you can see the synergy. With the new refinery, we are going to be getting diesel and gas directly from the Dangote Refinery. This is going to boost us and help significantly with profitability.”

He further emphasised the value of the cross border footprint, noting, “Regarding expansion, you can see the African expansion. We have gone into Côte d’Ivoire, apart from Tanzania and many other countries where Dangote is expanding. This expansion in the long run will ensure we make more profit. For the first time, the company’s profitability has crossed N1tn, which is very commendable, and the stock price has gone above 1,000 naira for the first time.”

When questioned on his overall satisfaction with the current returns, Awoh urged the public and the press to weigh long term operational health above short term payouts.

“The media needs to help us understand that a dividend is not the only benefit of an investment. There are instances where a company will pay you a massive dividend this year, but it won’t even exist in the next 50 years.

“What I am satisfied with when I invest, which is exactly the case with Dangote, is that I see a future. For a company that is constantly expanding, it means sustainability. That is the essence of it. None of us wants to eat today and die tomorrow. We must begin to ask companies, even as journalists, ‘Will this company be there tomorrow?’ If it’s not going to be there tomorrow, then I’m not satisfied. But Dangote, from what I’ve seen, will be there for me tomorrow,” Awoh said.

He noted that the planned addition of 25 million tonnes of production capacity reinforced confidence that the company would continue creating generational wealth, adding, “The expectation is simply that they will continue to do even better.”