Why Dangote aims to become Nigeria's biggest Forex Supplier

• Aliko Dangote, the Chairman of the Dangote Group, has disclosed that the group aims to become Nigeria’s largest Forex supplier
• Dangote disclosed that the conglomerate is targeting about $30 billion in revenue in 2025
• He said the company wants to stop sourcing foreign exchange from the Central Bank of Nigeria (CBN)

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

If all goes according to plan, Nigeria will have no more need to worry over foreign exchange as the Dangote Group is poised to become the nation's largest forex supplier in the next 12 months.

The Dangote Group revealed that it is targeting about $30 billion in revenue in 2025 while projecting to become Nigeria’s largest FX supplier.

Chairman of the Dangote Group, Aliko Dangote, forecasts huge revenue in 2025 Credit: Bloomberg/Contributor
Source: Getty Images

Dangote projects massive revenue

The Chairman of the Dangote Group, Aliko Dangote, stated this in a presentation during a media tour of the Dangote Refinery where he disclosed that the company plans to become independent of the Central Bank of Nigeria (CBN) in forex sourcing.

According to a 2022 projection, the group’s revenue stood at about $5.4 billion, meaning that it targeted a 455% increase in revenue between 2022 and 2025.

Dangote said:

“What we are trying to do is to 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.”

Dangote to end sugar imports

He disclosed that 75% of the company’s revenue used to come from its cement business, while 80% of its earnings before interest, taxes, depreciation, and amortization (EBITDA ) is from Nigeria, and 90% of the revenue is from various local currencies which are at risk.

According to reports, the Nigerian billionaire disclosed that the group would invest about $900 million so that in the next four years, there will be no need for raw sugar imports into Nigeria.

Dangote Refinery's management had accused IOCs of trying to sabotage the firm by inflating crude oil prices, leading to the company resorting to crude oil imports.

The Dangote Group is a conglomerate, comprising diverse business chains spanning agriculture, oil and gas, consumer goods, cement, and others.

NNPC no longer owns a 20% stake in Dangote Refinery

Reports say that Dangote recently disclosed that the group wants to venture into iron and steel manufacturing, a move experts said will curb Nigeria's futile effort to become a top steel manufacturer in Africa with billions of dollars sunk into the moribund Ajaokuta Steel Company.

The development comes as Dangote disclosed that Nigeria's National Petroleum Company Limited (NNPC) no longer holds a 20% stake in the Dangote Refinery due to its failure to pay its balance.

He said the national oil firm now has only a 7% stake in the 650,000 bpd-capacity refinery.

Dangote confirms the date the refinery will begin the sale of petrol

Legit.ng earlier reported that Aliko Dangote, Africa’s richest man and founder of Dangote Group, has confirmed that his refinery will commence the sale of petrol to Nigerians in August 2024.

Dangote gave the update while speaking with Journalists on Sunday, July 14, 2024.

According to Dangote, the sale will be made directly to marketers, and there is hope that this could crash petrol prices.

Source: Legit.ng