The Dangote Group on Sunday revealed that it is targeting around $30 billion in revenues by the year 2025 whilst projecting to become the largest supplier of foreign exchange in the FX market in the future.
The Chairman of the Group, Alhaji Aliko Dangote disclosed this in a presentation during a media tour around the Dangote refinery where he stated that the group plans to become independent of the CBN in terms of forex sourcing.
He stated that the group aims to shift its revenue composition in the cement business from the current 75% to 15% in the future. Additionally, he highlighted plans to balance revenue from EBITDA, moving from a 80% Nigerian base to 50% foreign based.
The group also projects that hard currency revenue will account for 90% of its total revenue.
The Group’s revenue according to the presentation in 2022 stood at $5.4 billion. This means the Group targets a 455% increase in revenue between 2022 and 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,” Dangote said.
“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 further stated that the group will be investing around $900 million so that in the next four years there will be no need for raw sugar imports into the country. This reiterates the earlier statement from the Chairman of the Group during the Annual General Meeting (AGM) of Dangote Sugar Plc where he stated that sugar imports will be a thing of the past in the next four years.
Dangote Group comprise a diverse chain of business spanning agriculture, oil and gas, consumer goods, cement etc. Recently, the Chairman of the Group disclosed plans to venture into iron and steel manufacturing- a sector that the country has gulped billions in investments from successive governments over the past 50years.
The 650,000-barrel capacity refinery was commissioned in 2023 but only started operations early this year.
The refinery has began selling diesel to markets but the much-awaited PMS has faced several delays with analyts at S&P insights saying petrol will be ready around the fourth quarter of this year.
The African richest man had earlier revealed that the Nigerian National Petroleum Corporation (NNPC) Limited no longer owns a 20% stake in Dangote Refinery.
According to him, the Nigerian oil company now owns only 7.2% of the refinery due to the NNPC’s failure to pay the balance of their share, which was due last month in June.
He stated that while the NNPC had promised to provide the funds, it has been unable to meet its obligations, thus reducing its stake in the $19 billion refinery to 7.2%.
“NNPC no longer owns 20% stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfill the obligations. Now, they only own a 7.2% stake in the refinery,” Dangote said.
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