- Dangote Cement has decried the state of power supply in Nigeria and said it is affecting the company's operations
- The company said it spent about 25 per cent of its earnings on power supply from N146.343 billion to NI96.6 billion
- The company blamed inflationary pressures on the spike on the cost of production and said that the company is also facing supply challenges
If current inflationary trends continue, there is the likelihood of a hike in the price of Cement.
One of Nigeria’s leading Cement manufacturers, Dangote Cement has bemoaned poor power supply in Nigeria, saying that it spent about N196.634 billion in 2021 from N146.342 billion in 2020.
Nairametrics quoted the company’s Group Financial Officer, Guillaume Moyen as saying at the firm's 13th Annual General Meeting recently that the increase was due to the volume of growth and inflationary pressure on its costs.
Inflation-hit Dangote Cement laments power supply
According to Moyen, the cost of Manufacturing went up by 25.8 per cent to N551.0 billion from N437.9 billion in 2020 while fuel and power gulped about N196.6 billion from N146.342 billion and materials consumed about 30 per cent, representing N175 billion from N134.91 billion.
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The company’s Group Managing Director, Michel Puchercos said one of the biggest challenges the company had in 2021 was the increase in inflation across cost lines.
Spike in energy costs to blame for increased cement costs
Puchercos said the company experienced a significant spike in its energy costs and spare parts, saying some of the cost pressures were due to the fall of the naira while others were due to macroeconomic pressures caused by inflation.
The company’s GMD said the firm experienced supply challenges in sea and freight costs and also the cost of clinker like in Cameroon and cement imports from Ghana.
Aliko Dangote to earn a whopping N293bn as dividend as his cement company makes sales of N1.38tn in 2021
Meanwhile, Legit.ng reported that Aliko Dangote, Africa's richest man, is set to earn a whopping N293 billion in dividends from his interests in Dangote Cement for the fiscal year ending 2021.
Aliko Dangote is the single majority shareholder of Dangote Cement Plc and one of his most profitable asset classes.
According to the financial statement filed to the Nigerian Exchange on Monday, February 28 2022, Aliko Dangote has direct ownership of 27,642,637 units and indirect investment of 14,621,387,610 which sums up to 14.65 billion ordinary shares.