The Dangote Group has disclosed that, by 2025, it hopes to generate approximately $30 billion in sales and position itself as the FX market’s leading provider of foreign exchange.
During a media tour of the Dangote refinery, the firm’s chairman, Alhaji Aliko Dangote, revealed this information in a presentation. He said that the group intends to become independent of the CBN with regard to sourcing currencies.
According to him, the group wants to reduce the percentage of its earnings from the cement business from 75% to 15% in the future. He also presented intentions to balance EBITDA revenue, shifting from an 80% Nigerian to a 50% foreign base. Additionally, the group predicts that hard currency revenue will account for 90% of its total revenue.
The Group’s revenue, according to the presentation in 2022, stood at $5.4 billion. This means the Group targets a 455% increase in revenue between 2022 and 2025.
He stated, “What we are trying to do is totally get ourselves out of the demand of foreign exchange from the Central Bank of Nigeria (CBN) and be the biggest supplier of foreign exchange in the foreign exchange market.”
“So, 75% of our revenue used to come from our cement business, 80% of our EDITDA is from Nigeria, and 90% of the revenue comes from various local currencies, which is a high risk. So 15% of the revenue going forward will come from cement (75%), 50% of our EBITDA will come from outside Nigeria, including exports, and 75% of the revenue will be in hard currency.”
