Business
Naira slide pushes Dangote diesel to N1,100/litre
The price of Automotive Gas Oil, popularly called diesel, produced by the Dangote Petroleum Refinery has increased from N940/litre to N1,100/litre due to the crash of the naira against the United States dollar, it was gathered on Tuesday.
Recall that on April 24, 2024, The PUNCH reported that the Dangote refinery announced a further reduction in the prices of diesel and aviation fuel to N940/litre and N980/litre respectively.
Earlier, precisely on April 17, The PUNCH reported that the Dangote refinery listened to the calls of oil marketers regarding a reduction in the price of diesel, as the refinery reduced the cost of the commodity from N1,200/litre to N1,000/litre.
In about a week, the multi-billion dollar facility again announced another reduction in the price of AGO but noted at the time that the change was only applicable to dealers purchasing up to five million litres of diesel and above.
However, it was gathered on Tuesday that the cost of diesel from the plant had increased from the N940/litre price that was announced by the plant in April to a new rate of N1,100/litre. Some other dealers who purchased lesser volumes said they got the product at N1,200/litre.
Oil marketers told our correspondent that the hike in diesel price by the $22bn worth refinery located in Epe, Lagos, was due to the recent southward movement of the naira against the dollar.
“The refinery had earlier reduced the price of its diesel to around N940/litre, but it later increased it up to N1,100/litre. This happened recently, maybe about two weeks ago,” the National President, of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, stated
Providing a reason for this, Maigandi told our correspondent that it “is because of the rising exchange rate, according to what the refinery told us.”
Although officials of the refinery stayed mute when contacted on the matter, industry sources and some major marketers confirmed the development.
“The recent crash of the naira against the dollar is pushing up the cost of commodities and, understandably, the price of diesel from Dangote refinery is being affected,” the National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, stated.
He explained that the Dangote refinery imports crude oil, stressing that crude is priced in dollars.
“So the recent rise in the foreign exchange rate is going to have an impact on the prices of refined products from the plant,” Ukadike stated.
In March and April this year, the naira appreciated against the United States dollar, a development that had marginal positive impacts on the cost of commodities.
The PUNCH, for instance, reported on April 16, 2024, that the naira continued its resurgence against the dollar, appreciating N1,136/$ at the official market and N1,050/$ at the parallel market at the close of trading activities the preceding day.
The report stated that traders predicted the dollar’s fall to below N1,000 before the end of that week.
The improved rate at the time followed a string of foreign exchange directives by the Central Bank of Nigeria aimed at stabilising the naira.
The apex bank in March said it had successfully resolved all valid foreign exchange backlogs, as pledged by the CBN Governor, Olayemi Cardoso, addressing inherited claims amounting to $7bn.
But the improvement in the naira could not be sustained, as the local currency came crashing against the dollar in subsequent weeks.
The naira has traded above N1,400/$ for most of May. The PUNCH, for instance, reported on May 8, 2024, that operators revealed that they bought the dollar at N1,400 and sold at N1,425 per dollar leaving a profit margin of N25.
This, according to the report, also indicated an N5 drop from the N1,430 it sold the preceding day.
The recent crash of the naira against the dollar warranted a rise in the cost of diesel dispensed by the multi-billion dollar Dangote refinery, according to marketers.
The refinery imports a large portion of its crude and the commodity is priced in dollars.
It was reported last week that the Dangote refinery was seeking to purchase millions of barrels of US crude oil over the next year as it ramps up processing rates.
Bloomberg reported that the plant had issued a term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July.
“The plant, built by Africa’s richest man, Aliko Dangote, issued a so-called term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July, according to a document seen by Bloomberg. The tender closes on May 21,” the report stated.
Petrol price projections
Meanwhile, oil dealers, on Tuesday, welcomed the announcement that was recently made by the President of Dangote Group, Alhaji Aliko Dangote, when he announced that the Dangote refinery would start pumping out Premium Motor Spirit, popularly called petrol, to the domestic market.
It was reported on May 18, 2024, that Dangote explained that following the laid-down plans of the Dangote refinery, Nigeria would no longer need to import petrol starting from next month.
Dangote also stated that his refinery can meet West Africa’s petrol and diesel needs, as well as the continent’s aviation fuel demand.
He spoke at the Africa CEO Forum Annual Summit in Kigali, expressing optimism about transforming Africa’s energy landscape.
“Right now, Nigeria has no cause to import anything apart from gasoline (petrol) and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre,” Africa’s richest man had declared.
Reacting to this on Tuesday, oil marketers welcomed the comment, but expressed hopes that the cost of PMS from the refinery should be less than the price which the Nigerian National Petroleum Company Limited is currently selling.
“It is a welcome development if the refinery can start releasing PMS by June because as marketers we are currently set to start buying the product from the plant,” Maigandi stated.
On whether dealers had commenced discussions with the refinery on PMS pricing, the IPMAN president said marketers had been discussing with the manager of the plant, but not specifically on petrol pricing.
“We have been discussing, but not about the price of petrol yet, rather on other matters such as the registration of members for the purchase of petrol and diesel from the refinery.
“We have indeed started buying diesel from them, but you have to register with the company first. So a general registration is ongoing,” he explained.
Maigandi, however, stated that though marketers had yet to receive the projected price for petrol from the plant, dealers would want to see a PMS price of about N500/litre from the Dangote refinery.
“We are looking at having it (PMS) at any price below the NNPC rate. The price which NNPC sells petrol is N565.50/litre, so we are expecting something below that price, maybe around N500/litre or a maximum of N600/litre,” Maigandi stated.
He was supported by Ukadike, who stated that the cost of PMS from the multi-billion dollar refinery should be less than what is currently obtainable in Nigeria.
Source:The Punch
There has been a surge of enthusiasm among many Nigerians as President Tinubu’s economic policies begin to yield promising outcomes.
The Central Bank of Nigeria (CBN) has enacted more stringent controls while sustaining a lower exchange rate at the official windows. Click link to continue reading.
The black market exchange rate for the dollar to naira continues to highlight Nigeria’s forex supply challenges, with many individuals and businesses relying on the parallel market for transactions.
CBN maintains tighter controls and a lower rate at official windows, limited access and allocation restrictions force most importers, businesses, and students abroad to turn to the parallel market, where prices reflect actual demand and supply pressures. Click link to continue reading.
The Dollar to Naira exchange rate in the black market continues to highlight Nigeria’s forex supply challenges, with many individuals and businesses relying on the parallel market for transactions.
CBN maintains tighter controls and a lower rate at official windows, limited access and allocation restrictions force most importers, businesses, and students abroad to turn to the parallel market, where prices reflect actual demand and supply pressures. Click link to continue reading.
The exchange rate of the Dollar to the Naira in the black market serves as a stark indicator of the ongoing foreign exchange supply challenges facing Nigeria.
As the official market remains constrained by stringent regulations enforced by the Central Bank of Nigeria (CBN), many individuals and businesses find themselves increasingly dependent on the parallel market to fulfill their currency needs.
The naira traded near a five-month high at 1514.86/$ on the official window at the close of last week, according to data from the Central Bank of Nigeria.
This indicates a strong start to September for the domestic currency, which started the month at 1,526.09/$ before closing at 1,514.86/$ on Thursday at the Nigerian Foreign Exchange Market.
The naira had last strengthened below the 1515/$ mark on March 6, when it closed trading at 1,512.30/$ on the NFEM. At the parallel market, it also appreciated, rising to 1,538/$, a 0.02 per cent strengthening.
Analysts maintain that the strength of the naira has been supported by improved liquidity and sustained dollar inflows. The Central Bank of Nigeria also intervened in the market to the tune of about $15bn.
Reviewing the FX market in the past week, AIICO Capital said the FX market opened the week on a calm note, with balanced flows keeping rates stable around $/N1527–1533 and no need for CBN intervention.
“Mid-week, offshore supply and opportunistic buying supported sentiment, lifting NAFEX fixing to $/N1528.13. Activity remained fluid with tight bid-offer spreads, as rates retraced to $/N1527.00 before stabilising.
Momentum improved further as the CBN intervened with $15m, and additional portfolio flows boosted supply, driving a sharp rally to the $/N1519–1523 range.
“By week’s end, the naira sustained gains, trading between $1508.00 and $1529.00. Overall, the currency appreciated strongly, closing at $/N1,514.8671,” said the AIICO Capital experts.
The weekly market report from Cowry Asset Management read, “In the coming week, we expect the naira to trade relatively stable across both the official and parallel markets, supported by sustained dollar inflows and a modest buildup in external reserves. However, pressures from speculative demand and global oil price volatility may cap further gains. The outcome of the OPEC+ meeting will be a key driver for crude oil prices, with any adjustments to production levels likely to influence Nigeria’s external earnings and, by extension, FX market dynamics.”
On the macroeconomic front, the country’s external reserves recorded a modest uptick, rising 0.10 per cent week-on-week to $41.31bn from $41.27bn, largely supported by stronger foreign inflows.
Analysts maintained that this increase in reserves provides an important buffer against external vulnerabilities such as volatile oil prices and currency pressures. It also offers the CBN greater capacity to intervene in the foreign exchange market when necessary, helping to stabilise the naira in the near term.
The outlook for the naira remains stable in the near term, supported by improved US dollar supply.
The black market exchange rate of the dollar to naira continues to highlight Nigeria’s forex supply challenges, with many individuals and businesses relying on the parallel market for transactions.
CBN maintains tighter controls and a lower rate at official windows, limited access and allocation restrictions force most importers, businesses, and students abroad to turn to the parallel market, where prices reflect actual demand and supply pressures. Click link to continue reading.
To uphold its global and continental reputation as one of the most esteemed and reliable firms within its sector, as well as to reflect the prominence of Nigerian billionaire Aliko Dangote in international rankings, Dangote Group has achieved remarkable revenue figures.
Dangote Cement generates its income primarily from the cement utilized in nearly every building project across Nigeria, outperforming nearly all other manufacturing companies in Africa in terms of profitability.
Dangote Cement Plc posted a stunning N2.07 trillion in revenue in just six months of 2025, reaffirming its dominance as Africa’s largest cement producer, according to Nairamettrics.
With half-year revenue already surpassing 57.86% of 2024’s full-year turnover, the company is on track for another record-breaking performance despite volume declines and rising costs.
Dangote Cement Plc is Africa’s biggest cement producer. The company manufactures and sells cement, the essential raw material for building houses, bridges, and roads. Its main plants are in Obajana (Kogi State), Gboko (Benue State), and Ibese (Ogun State).
Through these factories, Dangote Cement supplies Nigeria and other African countries with millions of tonnes of cement every year.
This milestone cements its leadership in Nigeria’s manufacturing sector, highlighting its resilience in a tough operating environment.
Profits nearly tripled year-on-year, supported by strong pricing power and disciplined cost management. Dangote Cement closed H1 2025 with a healthy net profit margin of 25.12%, compared to just 10.79% in the prior year.
Business divisions
Dangote Cement keeps things simple. Its operations are divided into two broad areas:
Nigeria Operations – its largest arm, handling production, sales, and distribution across the country.
Pan-Africa Operations – plants and sales subsidiaries in over 9 African countries, exporting Nigerian cement where needed.
This structure helps the company reduce risk by balancing revenue from its home base with income from other fast-growing African markets.
What they sell to make money
The company’s core product is cement, sold in 50kg bags, jumbo bags, or bulk quantities for large projects.
Dangote makes money by producing cement at scale, then selling it to retail distributors, wholesalers, and large construction firms. Cement is a necessity in every construction site, from housing estates to federal highways, which guarantees consistent demand.
Revenue growth drivers despite lower volumes
The company’s revenue grew by 17.70% year-on-year, reaching N2.07 trillion in H1 2025, up from N1.76 trillion in H1 2024. Remarkably, this half-year revenue already accounts for 57.86% of its full-year 2024 revenue (N3.58 trillion), underscoring the strength of its topline performance.
Interestingly, this revenue surge came despite a 4.08% decline in sales volume from 13.93 million tonnes in H1 2024 to 13.37 million tonnes in H1 2025. This suggests that price adjustments and strategic regional demand outweighed volume declines.
This reflects effective pricing strategies and resilient demand across key markets, despite pressure on sales volumes. With H1 2025 revenue already accounting for 54% of FY 2024 turnover, the company is well-positioned to outperform last year’s sales, underscoring its strength in core markets.
The inventory turnover ratio of 1.23x shows that the company sold its stock more than once in six months, translating to about 2.5 times annually a healthy rate for the cement industry. Likewise, a receivables turnover of 14.61x demonstrates Dangote’s strong market leverage and ability to secure quicker customer payments.
Revenue by segment and geographical contribution
Cement and clinker sales remained the company’s lifeblood, contributing 99.99% of total revenue. Other products brought in just N12 million, about 0.001% of overall sales, highlighting the company’s core dependence on cement.
Clinker is an intermediate product in cement production made by heating limestone and other raw materials in kilns at very high temperatures, whereas cement is the final product, made by grinding clinker with gypsum and other additives.
Dangote often exports clinker to other countries or sells it to third parties who grind it into cement. However, there is no separate breakdown for each of these products in the revenue segment.
Breaking down the revenue by geographical dominance, Nigeria accounted for 67.89% (N1.44 trillion) compared to 55.12% (N991.38 billion) in H1 2024, while Pan-African operations contributed 32.11% (N682.12 billion), a decline from the 44.88% (N807.11 billion). The balance was adjusted for eliminations, reinforcing the company’s dual-market strategy: dominance at home, steady growth abroad.
Nigeria contributed the most to the company’s revenue at 67.89% while other African countries altogether contributed 32.11% to the top line (revenue).
Nigeria: 67.89% of revenue (N1.44 trillion).
Pan-Africa: 32.11% (N682.12 billion).
The Pan-Africa countries include – South Africa, Ethiopia, Ghana, Kenya, Zambia, Senegal, Cameroun, Tanzania, Sierra Leone, Liberia, Guinea, D.R. Congo, Cote D’Ivoire, Togo, Zimbabwe, Gabon, Burkina Faso, Chad, Mali, Niger, Madagascar, Benin, Mozambique.
Profit margin pressures eased
Operating profit climbed 47.0% year-on-year to N810.98 billion in H1 2025, up from N551.60 billion in the same period of 2024, while operating margin improved slightly to 39.19% from 31.34%. Pre-tax profit surged 149.2% YoY to N730.03 billion, almost two and a half times the prior year.
The earnings boost was driven by a 17% revenue increase alongside a more efficient cost profile. Cost of sales declined to 41.20% of revenue (N853.56 billion), compared to 47.34% in H1 2024, meaning the company spent less relative to the revenue growth achieved. As a result, gross profit rose to N1.22 trillion, representing a margin of 58.8% and already accounting for 62.95% of full-year 2024 levels.
Profitability was further strengthened by a lower net finance expense. Finance costs dropped to N216.16 billion from N332.52 billion a year earlier, while finance income more than quadrupled to N113.26 billion from N24.79 billion. This resulted in net finance expenses of just N102.91 billion, compared to N307.72 billion in H1 2024. Overall, net income margin expanded sharply to 25.12%, from 10.79% last year, underscoring the company’s improved profitability profile.
Liquidity concerns
Trade and other receivables surged 43.03% to N166.98 billion, indicating a significant rise in payments yet to be converted into cash.
Inventory rose 6.96% to N716.29 billion, reflecting a buildup of stock to support sales.
Cash and cash equivalents fell 14.66% to N383.90 billion, reducing immediate liquidity buffers.
Who else is in the game
In Nigeria, Dangote Cement competes directly with BUA Cement and Lafarge Africa. BUA Cement is its closest challenger locally, but Dangote still commands the biggest share of Nigeria’s cement market.
Globally, it faces pressure from multinational giants like LafargeHolcim and HeidelbergCement.
What makes Dangote Cement stand out is its scale is as it produces more than its rivals combined in Nigeria and has extended operations to countries like Ethiopia, Senegal, and Tanzania.
What this tells us
Here’s what it all boils down to: Dangote Cement is Africa’s cement powerhouse. It dominates Nigeria’s market, enjoys healthy profit margins, and continues to expand across the continent. Rising costs remain a challenge, but its pricing power has shielded it so far.
For investors and observers, the company’s ability to turn 2 trillion naira in 6 months into N730 billion profit highlights just how strong its business model is.
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