Nigerian billionaire investor Femi Otedola has shed light on his recent acquisition of shares in Dangote Cement, a major player in Nigeria’s business landscape. Otedola’s strategic move, outlined in an official statement, emphasizes the long-term vision behind the investment, focusing on wealth preservation, export potential, and creating value for shareholders.
In the statement, Otedola praises Dangote Cement’s unique standing as the only Nigerian cement company with two export terminals, boasting an impressive export capacity of 8 million tons annually. This, he believes, positions the company as a key contributor to Nigeria’s foreign exchange earnings and a supporter of businesses vital for economic resilience.
As the largest cement producer in Sub-Saharan Africa, Dangote Cement’s annual production capacity of 51.6 million tons across ten countries plays a pivotal role in driving economic growth in the region. Otedola acknowledges the company’s significant role in regional economic integration and its contribution to Nigeria’s economic diversification.
The recent expansion of Dangote Cement, including a new 6 million-ton plant in Itori, Ogun State, underscores its commitment to economic development. Otedola expresses confidence in the company’s potential to propel industrial and economic growth in both Nigeria and Africa.
Aligning with his vision for long-term wealth preservation, Otedola highlights the substantial opportunity for foreign exchange earnings presented by Dangote Cement’s two export terminals. He sees the company’s pan-African presence as a key factor that makes it an ideal choice for investment.
Otedola’s investment strategy prioritizes well-managed companies with strong governance, emphasizing that shareholders should be the primary beneficiaries of a company’s success. Dangote Cement’s impressive track record of dividend payments exceeding N2.1 trillion aligns with Otedola’s principles.
In the context of Nigeria’s evolving regulatory landscape, Otedola’s investment aligns with the focus on Environmental, Social, and Governance (ESG) compliance. He believes that companies like Dangote Cement, adhering to these principles, are better positioned to ensure transparency, accountability, and long-term value creation.
Closing his statement, Otedola’s strategic investment in Dangote Cement reflects his confidence in the company’s ability to provide significant returns and his commitment to businesses prioritizing their shareholders. The recent surge in Dangote Cement’s share price, gaining 53.9% last week and an additional 10% today, underscores the market’s positive response to Otedola’s investment. With the company on track to achieve a N10 trillion market capitalization, currently valued at N9.1 trillion, it solidifies its position as a key player in Nigeria’s economic landscape.
Credit: NariaMetrics
