Nigerian entrepreneur and investor Femi Otedola has made a ‘significant acquisition’ of shares in Dangote Cement which is reportedly worth US$6.73 million.
The billionaire confirmed the development in a statement on Tuesday, noting that it was part of his overall strategy to ensure long-term wealth preservation.
The billionaire investor stressed that the move also underscores his confidence in the capacity of the company to propel Nigeria substantially and indeed Africa to the much-needed era of industrialisation.
He emphasised that the strategic investment highlights his confidence in Dangote Cement’s potential to generate foreign exchange for the country and his dedication to supporting businesses that contribute to Nigeria’s economic resilience.
As sub-Saharan Africa’s largest cement producer, Otedola reaffirmed that Dangote Cement boasts an annual production capacity of 51.6 million tons across 10 countries.
According to him, this extensive footprint highlights the company’s dominance in the cement industry and its crucial role in driving economic growth across the region.
He pointed out that the recent expansion of Dangote Cement, including the new 6 million-ton plant in Itori, Ogun State, enhances its export capacity and emphasises the company’s contribution to Nigeria’s economic diversification.
“Dangote Cement’s export capabilities and extensive operations across sub-Saharan Africa are essential for regional economic integration and growth,” Otedola commented, adding that “my investment is a testament to my confidence in its potential to propel Nigeria’s and Africa’s industrial and economic development.”
Additionally, Otedola emphasized the significance of Dangote Cement’s consistent dividend payments, exceeding N2.1 trillion in recent years, and its dedication to sustainable business practices. He highlighted that these factors align with his investment principles.
Otedola outlined his investment strategy, placing a premium on well-managed companies with strong governance structures that adhere to the principle that no individual should overshadow the company itself. He expressed his focus on long-term wealth preservation and ensuring that shareholders reap the benefits of a company’s success.
In relation to the evolving regulatory landscape in Nigeria, particularly the emphasis on Environmental, Social, and Governance (ESG) compliance, Otedola noted that this aligns with his investment criteria. Companies like Dangote Cement, which prioritize these principles, are seen as contributors to transparency, accountability, and long-term value creation.
Highlighting Dangote Cement’s robust corporate governance and impressive ESG compliance track record, Otedola underscored its suitability as an investment choice. He sees the company as not only contributing to Nigeria’s industrial strength but also aligning with his vision for ethical and sustainable business practices.
Otedola positioned his investment in Dangote Cement as a strategic decision driven by his belief in the company’s positive impact on Nigeria’s economy. He emphasized his commitment to fostering a culture of responsible investment and encouraged Nigerians to invest in companies that offer financial returns while playing a crucial role in the nation’s economic growth and stability.
Sub-Saharan Africa’s largest cement maker, Dangote Cement, recently leapfrogged telecommunications powerhouse Airtel Africa to become Nigeria’s biggest company by market capitalisation, currently valued at N8.35 trillion.
Dangote Cement has returned 81.4 percent in the last 52 weeks and has 17.04 billion outstanding shares.
Dangote Industries Limited, the conglomerate controlled by Africa’s richest person, Aliko Dangote, holds 85.8 percent of the company’s shares.
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