Foremost Nigerian businessman, Femi Otedola, provided detailed insights into his recent substantial investment in Dangote Cement, highlighting its strategic importance for long-term wealth preservation and economic development.
In a statement from his media office, Otedola explained the rationale behind his move, emphasizing the unique attributes of Dangote Cement that prompted his investment decision.
Otedola’s decision to acquire substantial shares in Dangote Cement followed his divestment from Transnational Corporation of Nigeria (Transcorp), where he sold 2.6 billion units of shares, amounting to 6.3%. The shares were strategically acquired by Tony Elumelu, the largest shareholder of United Bank for Africa, marking a significant development in the Nigerian business landscape. Otedola’s subsequent investment in Dangote Cement underscores his continued commitment to impactful ventures in the country.
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In his statement, Otedola stated, “This astute investment in Dangote Cement is part of my overall strategy to ensure long-term wealth preservation.”
He said that the move reflects his confidence in the capacity of Dangote Cement to play a pivotal role in propelling Nigeria and Africa into a much-needed era of industrialization.
The billionaire investor expressed his belief in Dangote Cement’s potential to substantially contribute to the economic growth of Nigeria and the broader African region. He noted that the company is the only cement company in Nigeria with two export terminals, boasting a combined export capacity of 8 million tons per annum.
Confirming his significant acquisition of shares in Dangote Cement, Otedola highlighted the strategic importance of the company’s position in the market. He stated, “Dangote Cement’s export capabilities and extensive operations across sub-Saharan Africa are essential for regional economic integration and growth.” This underlines his confidence in the company’s ability to generate foreign exchange for Nigeria and support businesses contributing to the country’s economic resilience.
As sub-Saharan Africa’s largest cement producer, Dangote Cement boasts an annual production capacity of 51.6 million tons across 10 countries. Otedola pointed at the company’s extensive footprint in the industry, highlighting its dominance and crucial role in driving economic growth across the region.
“The recent expansion of Dangote Cement, including the new 6 million-ton plant in Itori, Ogun state, enhances its export capacity and emphasizes the company’s contribution to Nigeria’s economic diversification,” Otedola remarked.
He sees the company’s commitment to expansion as a positive signal for its role in supporting economic development initiatives.
Otedola’s investment in Dangote Cement aligns with his vision of long-term wealth preservation and the principle that shareholders should be the primary beneficiaries of a company’s success.
He stated, “In my investment decisions, I focus on long-term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success.”
Dangote Cement’s unique position with two export terminals offers a substantial opportunity to earn foreign exchange crucial for Nigeria’s economy, according to Otedola. He believes that the company’s extensive pan-African presence makes it an ideal investment choice, contributing to the nation’s economic growth.
The billionaire businessman acknowledged Dangote Cement’s track record of dividend payments, exceeding N2.1 trillion in recent years, and its commitment to sustainable business practices.
“Companies like Dangote Cement, which consistently deliver value to their shareholders, are fundamental for sustainable economic growth,” Otedola asserted.
Moreover, Otedola noted the evolving regulatory space in Nigeria, emphasizing Environmental, Social, and Governance (ESG) compliance. He said that companies adhering to these principles are more likely to ensure transparency, accountability, and long-term value creation.
“Dangote Cement’s strong corporate governance and impressive ESG compliance track record make it an ideal investment choice,” stated Otedola.
Otedola stated that his investment in Dangote Cement is a strategic decision reflecting his belief in the company’s ability to positively impact Nigeria’s economy. It aligns with his commitment to fostering a culture of responsible investment and serves as an encouragement for others to consider investments that contribute to economic growth and stability.
Stakeholders believe that Otdola’s investment in Dangote Cement serves as a call to action for Nigerians to invest in companies that offer financial returns and play a crucial role in the nation’s economic growth and stability.