Shareholders endorse N45 per share payout as Africa’s largest cement producer accelerates expansion, boosts operational efficiency and strengthens long-term growth strategy.
Dangote Cement Plc has reaffirmed its position as one of Africa’s strongest and most profitable manufacturing companies after shareholders approved a final dividend of N45 per ordinary share for the 2025 financial year, resulting in a record N753.8 billion payout to investors.
The approval was granted during the company’s 17th Annual General Meeting (AGM) held in Lagos, where shareholders also endorsed the company’s long-term growth strategy aimed at increasing production capacity from 55 million tonnes to 80 million tonnes annually by 2030. The ambitious expansion plan forms a key component of the Dangote Group’s Vision 2030, which seeks to deepen industrialisation across Africa through sustained investments in manufacturing, logistics and energy efficiency.
The dividend represents one of the highest payouts in the history of Nigeria’s capital market and reflects the company’s strong financial performance, improved operational efficiency and continued confidence in its future growth prospects. The payment also reinforces Dangote Cement’s reputation as one of the Nigerian Exchange’s most rewarding dividend-paying companies, offering significant returns to both institutional and retail investors.
Speaking at the AGM, Chairman of Dangote Cement Plc, Emmanuel Ikazoboh, said the company’s long-term objective extends beyond financial performance, emphasizing its commitment to building Africa’s industrial capacity through strategic investments that maximise the continent’s abundant natural resources.
According to him, Dangote Cement is committed to driving sustainable industrial growth by expanding production capacity, improving manufacturing efficiency and reducing dependence on imported products. He noted that the company’s investments are designed not only to generate shareholder value but also to support economic development, create employment opportunities and strengthen Africa’s manufacturing base.
The company’s vision received strong backing from shareholders, who praised its consistent expansion across African markets and its strategy of building an integrated manufacturing network capable of meeting growing demand for cement and other construction materials.
National President of the Association for the Advancement of the Rights of Nigerian Shareholders, Dr. Faruk Umar, described the company’s continental growth strategy as a significant step towards Africa’s economic independence.
He observed that Dangote Cement’s founder has consistently pursued investments that enable African countries to utilise their own resources to drive development rather than relying heavily on foreign investors for industrial growth. According to him, the 50 percent increase in dividend payment reflects years of careful planning and disciplined execution rather than a short-term financial decision.
He explained that the company’s sustained focus on exports, market expansion and operational improvements has opened new business opportunities across the continent, allowing Dangote Cement to reach markets that were previously inaccessible due to logistical and operational constraints.
Beyond rewarding shareholders, Dangote Cement is also investing heavily in initiatives aimed at reducing production and distribution costs. The company disclosed that it is expanding the deployment of Compressed Natural Gas (CNG)-powered trucks as part of efforts to reduce transportation expenses while promoting cleaner energy solutions.
Management also revealed that the company is increasing the use of alternative fuels by converting waste materials into energy to power manufacturing operations. The initiative is expected to lower energy costs, improve environmental sustainability and reduce dependence on conventional fossil fuels.
Group Managing Director Arvind Pathak attributed the company’s impressive performance to deliberate investments in exports, logistics and operational efficiency.
He said Dangote Cement remains focused on executing its long-term expansion strategy, with plans to raise annual production capacity from 55 million tonnes to 80 million tonnes by 2030.
According to Pathak, expanding production capacity will enable the company to meet rising demand across Africa while strengthening its competitiveness in both domestic and regional markets.
Shareholders also commended management’s efforts to improve the company’s financial position through prudent cost management and reduced borrowing.
Financial analyst and shareholder Nornah Awoh praised the company’s deployment of approximately 3,000 CNG trucks, describing the investment as a major factor in improving operational efficiency and reducing logistics costs.
He further noted that Dangote Cement has reduced its bank borrowings by approximately 50 percent, significantly strengthening its balance sheet and lowering financing costs.
According to Awoh, the company’s first-quarter performance, which recorded growth of more than 100 percent compared to the corresponding period of the previous year, demonstrates that the business is on a strong upward trajectory.
He expressed optimism that if the current performance is sustained throughout the year, shareholders could receive even higher dividend payments in future financial years.
Awoh also highlighted the strategic benefits expected from the Dangote Refinery, noting that access to locally produced diesel and natural gas would further reduce energy costs and improve profitability across Dangote Cement’s operations.
He pointed to the company’s expanding footprint in countries such as Côte d’Ivoire, Tanzania and several other African markets as evidence of a long-term strategy aimed at building a pan-African manufacturing powerhouse.
According to him, continued regional expansion will diversify revenue streams, strengthen market leadership and support higher profitability over the coming years.
He also noted that Dangote Cement recently achieved another significant milestone by recording profit exceeding N1 trillion for the first time while its share price surpassed N1,000, reflecting growing investor confidence in the company’s long-term prospects.
While acknowledging the importance of dividend payments, Awoh urged investors to place greater emphasis on the long-term sustainability of companies rather than focusing solely on immediate returns.
He argued that a company’s ability to remain profitable, expand its operations and create lasting shareholder value is ultimately more important than paying exceptionally high dividends in a single financial year.
With record profitability, an ambitious expansion programme, continued investments in cleaner energy, improved logistics and a strengthened balance sheet, Dangote Cement appears well positioned to sustain its leadership in Africa’s cement industry while delivering long-term value to shareholders and contributing significantly to the continent’s industrial development.
SOURCE: PUNCH
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