Africa’s most diversified manufacturing conglomerate, Dangote Group has revealed that it has suspended exports from its commissioned export terminals.
The Group made this move in an effort to cut the country’s cement supply gap and keep cement prices low in Nigeria.
According to a news report by The Punch, the Group Executive Director, Strategy, Portfolio Development and Capital Projects, Devakumar Edwin made this revelation while speaking at a press briefing in Lagos this week.
The Director explained that the surge in the demand for cement products has led to a supply gap of about 40% in the country’s cement market, and like every other player the Dangote Group is working actively to close out this gap.
The demand and consumption of cement in the nation currently outstrips supply, and this can be pegged on the growth in the country’s population, and the strong appetite for real estate investment and construction as investors consider them a good hedge against falling local currency.
Despite suspending exports from its recently commissioned export terminals, thereby foregoing dollar earnings, Dangote Cement has also reactivated its 4.5million mtpa capacity Gboko Plant which was closed 4 years ago.
These plants when completed in 2022, in addition to a 3rd cement line of 3 million mtpa in Sokoto which has been booked for commissioning in mid-2021, are expected to increase the total installed cement production capacity of the company from 8 million mtpa to 20 million mtpa.