Dangote Plans Cement Expansion Amid FG Price Cut Directive

Aliko Dangote, President of the Dangote Group, has announced plans to increase Dangote Cement’s annual production across Africa by 61 million metric tons starting next year.

This expansion follows the nearing completion of new plant projects in Itori, Ogun State, Nigeria, and Abidjan, Cote d’Ivoire.

Speaking during a meeting with Ogun State Governor Dapo Abiodun in Abeokuta on Monday, Dangote revealed that the Itori facility will add 6.0 million metric tons per annum (Mta) to the company’s capacity. Once the project is completed, Ogun State will become Africa’s top cement-producing region, with a total capacity of 18Mta. The state is already home to Dangote’s 12Mta plant in Ibese.

“Dangote Cement is Africa’s leading cement producer, boasting a total capacity of 52.0Mta across the continent, nearly 70% of which is produced in Nigeria. Our Obajana plant in Kogi State is Africa’s largest, with a capacity of 16.25Mta across five lines. Ibese in Ogun State has four lines producing 12Mta, Gboko in Benue State produces 4Mta, and Okpella in Edo State has a capacity of 3Mta,” Dangote stated. “Once the Abidjan and Itori plants become operational, our production will rise to 61 million metric tons per annum next year.”

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Dangote also highlighted plans to boost Corporate Social Responsibility (CSR) efforts, including developing concrete roadways. “In Itori, we’ve signed a Community Development Agreement to implement projects addressing local needs,” he added.

Additionally, Dangote announced the revival of the Dangote Group’s investment in the Olokola Free Trade Zone (OKFTZ) in Ogun State, reigniting plans to construct Nigeria’s largest port. “We previously abandoned the OKFTZ project, but due to the state government’s investor-friendly policies, we’re returning to the project,” Dangote confirmed.

Meanwhile, the Federal Government has urged cement producers to reduce prices to N7,000 per 50kg bag, with Works Minister Dave Umahi warning of potential presidential intervention if prices remain high. Umahi emphasized that stabilized exchange rates and rising gas prices are key factors influencing cement costs.

In response to allegations regarding the demolition of a cement plant during his administration, former Ogun State Governor Ibikunle Amosun challenged Dangote to provide evidence of the necessary approvals for the affected structures.

With these developments, Dangote Cement’s expansion is poised to meet rising demand across Africa while enhancing infrastructure growth and job creation in Nigeria.