The Dangote Group has announced an ambitious target to generate $30 billion in revenue by 2025, aiming to become Nigeria’s largest supplier of foreign exchange (forex). Alhaji Aliko Dangote, the Group’s Chairman, shared these plans during a media tour of the Dangote refinery.
The strategy involves significant shifts in revenue sources. Currently, 75% of the Group’s revenue comes from its cement business, but this is projected to decrease to 15%. Meanwhile, the proportion of revenue in hard currency is expected to rise to 90%, and half of the Group’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) will come from outside Nigeria, including exports. This diversification aims to reduce the Group’s reliance on the Central Bank of Nigeria (CBN) for forex.
“We aim to eliminate our dependence on the CBN for forex and become the largest supplier in the market,” Dangote stated. He outlined the group’s plan to diversify its revenue streams, which includes reducing the risks associated with relying heavily on local currencies.
Additionally, the Dangote Group is investing $900 million to end the country’s reliance on raw sugar imports within four years, aligning with earlier commitments made by Dangote Sugar Plc. The Group also plans to venture into iron and steel manufacturing, a sector that has historically seen substantial investments from Nigerian governments.
The Dangote refinery, which started operations this year, has begun producing diesel and is expected to start supplying petrol by the fourth quarter of this year. This development is crucial as Nigeria looks to reduce its dependency on imported petroleum products.
With a diverse portfolio spanning agriculture, oil and gas, consumer goods, and cement, the Dangote Group is positioning itself as a key player in Nigeria’s economic landscape, driving growth and self-sufficiency in several critical sectors.
