Dangote Group has disclosed… targeting about $30 Billion Anticipated in earnings by 2025 whilst Tossing to evolve to be an Extensive Supplier of Foreign Exchange in the FX Market in the Future

By Abdul Rahman Bangura-

Photo Credit: Dangote Group

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Alhaji Aliko Dangote – Chairman of the Dangote Group divulged in a presentation during a media tour around the Dangote refinery where he stated that the group schedules to evolve independently of the CBN in terms of forex sourcing.

He expressed that, the group strives to change the course of its income arrangement in the cement business from the current 75% to 15% in the future. Besides, he emphasized agendas to offset earnings from EBITDA, progressing from an 80% Nigerian base to a 50% foreign base.

The group likewise lobs that, hard currency revenue will account for 90% of its total revenue.

The Group’s revenue according to the presentation in 2022 was placed at $5.4 billion. This tells the Group targets a 455% increase in revenue between 2022 and 2025.

He expressed, “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”.

Similarly, he remarked that the group will be subsidizing around $900 million so that in the successive four years; there will be no demand for raw sugar imports into the country. This regurgitates the early announcement from the Chairman of the Group during the Annual General
Meeting (AGM) of Dangote Sugar Plc where he articulated that, sugar imports will be a thing of the past in the next four years.

Dangote Group comprises a diverse chain of businesses traversing agriculture, oil, and gas, consumer goods, cement, etc. Lately, the Chairman of the Group unveiled strategies to venture into iron and steel manufacturing – a sector that the country has gobbled billions in acquisitions from consecutive administrations over the past 50 years.

In 2023, the 650,000-barrel capacity refinery was authorized but only commenced processes in early 2024. Already, the refinery has begun turning out diesel to markets but the much-awaited PMS has faced several delays with analyses at S&P Insights saying that petrol will be inclined around the fourth quarter of this year.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent