Dangote Cement Plc, the flagship company of Africa’s richest man Aliko Dangote, has set a record by becoming the first Nigerian company to achieve a market capitalization of N10 trillion ($11.2 billion) on the Nigerian Exchange.
This milestone follows closely on the heels of Dangote’s earlier success with the $20-billion Dangote Oil Refinery, which officially commenced the production of diesel and aviation fuel on Jan. 13.
With a current market capitalization of N10.1 trillion ($10.3 billion), Dangote Cement has solidified its position as the most valuable company on the Nigerian Exchange (NGX). This remarkable feat has been fueled by sustained investor buying interest, propelling the company’s shares to surge by an impressive 85.2 percent in the current year alone.
Dangote Cement rockets: 9.99-percent surge propels market cap beyond N10 trillion
As of the close of trading activities on Monday, Jan. 22, shares of Dangote Cement soared by 9.99 percent, reaching a price of N592.6 per share. This surge pushed the company’s market capitalization above the N10 trillion ($11.2 billion) mark.
The surge in Dangote Cement shares coincides with Nigerian billionaire Femi Otedola’s strategic investment in the leading cement company. Otedola’s decision to invest underscores his confidence in Dangote Cement’s ability to generate foreign exchange for Nigeria and his commitment to supporting businesses contributing to the country’s economic resilience.
Speaking about his investment, Otedola highlighted Dangote Cement’s unique position with two export terminals, offering a substantial opportunity to earn foreign exchange crucial for Nigeria’s economy.
Six-million-tonne boost in Itori reinforces commitment to Africa’s infrastructure development
Dangote Cement, as Sub-Saharan Africa’s largest cement producer, commands an annual production capacity of 55 million tonnes spread across 10 countries. The company’s recent expansion, including the addition of a new six-million-tonne plant in Itori, Ogun State, enhances its export capacity and emphasizes its contribution to Nigeria’s economic diversification.
Dangote Cement’s export ambitions align with a broader vision to become a dominant player in the regional construction scene, supplying essential materials to address the continent’s vast infrastructure and housing needs.
Otedola’s optimism is grounded in the pressing need for infrastructure and housing development in Africa, particularly in the face of a housing deficit estimated at 50 million units in Sub-Saharan Africa.