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- Nigerian businesses person had to conflict done a pugnacious decennary with aggregate challenges
- But amid these challenges, the cement giants person inactive recorded important maturation successful concern valuation
- Dangote Cement and BUA Cement were some worthy a combined N4.16 trillion, but are present worthy astir triple that value
Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.
The harsh operating situation successful caller years has taken its toll connected respective companies operating successful Nigeria, affecting some concern valuation and profits.
Despite these challenges, the large cement manufacturers successful Nigeria person held their own, managing to summation valuation contempt the losses.
Combined together, Dangote Cement and BUA Cement person grown their concern valuation by 163.7% successful the past 5 years.
Source: UGC
Businesses grounds losses owed to challenges
Between 2020 and 2025, the macroeconomic situation has seen businesses grapple with reduced income owed to precocious inflation, rising accumulation costs, rising energy costs, and monolithic naira devaluation from 2023 till date.
Several multinationals person been forced to adjacent store and determination large concern operations extracurricular Nigeria, and those inactive operating person had to woody with large losses.
MTN Nigeria, for instance, recorded large FX losses successful 2023 and 2024, starring to 2 consecutive losing years without paying dividends to shareholders. The telecom elephantine adjacent reported a N400 billion nonaccomplishment successful 2024.
Dangote Cement and BUA Cement endure FX losses
Dangote Cement mislaid N113.3 cardinal to overseas speech fluctuations successful H1 2023, and losses roseate to N201.3 cardinal successful H1 2024, the Guardian reports.
International operations besides brought Dangote Cement an added N249 cardinal Foreign Exchange losses successful 2024.
BUA Cement arsenic incurred FX losses of N81.8 cardinal successful 2023, and it roseate to N188 cardinal successful 2024.
Dangote, BUA cement turn 164% successful 5 years
BUA cement marketplace capitalisation has grown from N1.18 trillion successful 2020 to N2.83 trillion, portion Dangote Cement grew from N2.98 trillion successful 2020 to N8.1 trillion by the adjacent of trading connected March 31, 2025.
Alone, Dangote Cement is the 2nd astir invaluable banal and accounts for 12.2% of the NGX equity marketplace astatine a marketplace headdress of N8.1 trillion, portion BUA Cement is the seventh astir invaluable stock.
Cement request remains precocious contempt macroeconomic challenges
Stakeholders accidental that the sustained request for cement is simply a cardinal operator to the companies' success, allowing them to walk connected the accrued accumulation costs to the consumers without losing marketplace share.
Source: Getty Images
Several roadworthy operation and existent property projects crossed Africa person besides kept the request for cement high, allowing some companies to besides export to different countries and person FX net to compensate for immoderate of the losses.
Dangote Group loses N423 cardinal to FX fluctuations
In related news, Dangote Group reported a large fiscal situation successful 2024 aft 3 of its listed subsidiaries recorded combined FX losses amounting to N423 billion.
This fig was revealed successful the 2024 fiscal reports of Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries.
Experts person recommended that the radical hasten its backward integration programmes and trim reliance connected the import of earthy materials, to hedge against aboriginal FX losses.
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Source: Legit.ng
