The Nigerian government has given permission to major cement manufacturer, Dangote Cement to begin exports across its land borders, indicative that the government might be on the verge of reopening trade with neighbouring countries after shutting access over a year ago.
President Muhammadu Buhari‘s administration gave its approval for the cement manufacturer to commence export to Niger and Togo in the third quarter, the first time in ten months, Michel Puchercos, chief executive officer, said on an investor call in Lagos. The CEO attributed the president’s authorization as the factor responsible for the company’s ability to resume cross-border export.
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The exemption to Dangote Cement is viewed as a preferential treatment by the government that stopped flow of goods through its land borders since August 2019, and could pave the way for other businesses to fully resume exports across the country’s land barriers.
Nigerian authorities closed borders with neighboring countries including Benin and Niger to curb smuggling and boost local production. Although the blockade encouraged the consumption of locally grown produce such as rice, it hurt factories across West Africa, which rely on Nigeria’s market of 200 million people.
The Lagos-based company’s plan to buy back some of its shares has been delayed by market volatility and low liquidity, which have affected valuation, Guillaume Moyen, acting chief financial officer said at the same conference call.
