Breaking News: The Dangote Group is aiming for $30 billion in earnings by year 2025, this will place the group as the top forex supplier in Nigeria.
Alhaji Aliko Dangote, Chairman of Dangote Group revealed this aspiration during a tour of the Dangote refinery with agents. He revealed that the Dangote Group aims to become independent of the CBN for it’s forex needs.
He also revealed that Dangote Group which is currently earning 75% of its revenue from its cement manufacturing would be restructured so that only 15% of it’s revenge would come from cement making and distribution.
The group also aims to rake in more forex, making a projection that upto 90% of its entire revenue in future will be in foreign currencies. Ogasabi suspects that this drive to earn in foreign currencies is necessitated by the downward slide of the naira.
According to Aliko Dangote’s presentation, the group’s total revenue in 2022 and 2023 is about $5.4 billion.
Calculations by 9AM News Nigeria business news editor show the group would be targeting a revenue increase of about 455% between 2024 and the end of 2025;
“What we are trying to do is to totally get ourselves out of the demand of foreign exchange from the Central Bank of Nigeria (CBN) and be the biggest supplier of foreign exchange in the foreign exchange market. So, 75% of our revenue used to come from our cement business and 80% of our EDITDA is from Nigeria and 90% of the revenue comes from various local currencies which is a high risk. So 15% of the revenue going forward will come from cement from 75% and 50% of our EBITDA will come from outside Nigeria including exports and 75% of the revenue will be in hard currency”.
Dangote stated
Increase in sugar production
Going further he added that in the next four years his group will be investing the sum of $900 million to expamd sugar production to meet Nigeria’s entire local demand so that there would be no more need to import sugar into the country.
Chairman of Dangote Sugar had earlier said the same during the annual general meeting of Dangote Sugar Plc announcing that the importation of sugar would soon become a thing of the past.
Dangote Group is a conglomerate of diverse business enterprises with operations in sectors like cement, agriculture, real estate, oil and gas, consumer products etc.
Iron and steel manufacturing
Dangote has also disclosed plans to delve into iron and steel production a sector which has suffered paralysis despite the monumental sums of money invested in it by the Nigerian government in over five decades.
Dangote’s refinery of 650,000 barrel per day capacity was commissioned last year. The refinery has also begun supplying diesel to markets but its supply of PMS has been delayed. It is expected that PMS supply will begin later this year.
9AM News Nigeria found that the slow take off of Dangote refinery was due to the unwillingness for local crude oil manufacturers to supply the Dangote refinery with crude oil for unknown reasons, leaving Dangote to import crude oil from other West African nations.
