AG Dangote Construction, a member of the Dangote Group has advocated for the increased adoption of cement in road construction with cement in the country.
Tunde Jimoh, a representative of the firm disclosed this at an event organized by the Council of Registered Engineers in Nigeria (COREN) in Abuja. According to him, roads built with cement have a longer lifespan. The company had undertaken several road projects in the last few years including the Apapa Wharf roads, Obajana-Kabba road, and a few in Edo State.
Another Revenue Driver Aside from more contracts for the comapny, increased adoption of cement for road construction in the country benefits cement companies as a revenue driver while they ramp up their production capacity. Cement is majorly used for building construction in Nigeria.
Dangote Cement has signaled its intentions to increase production volumes across some of its plants within and outside the country.BUA Group’s production capacity is expected to hit 8 million tonnes this year, on completion of the second line at its Obu cement plant.
Lafarge Africa is about commencing an expansion of one of its plants located in the South West of Nigeria.
The Buhari administration has also made fixing infrastructure, especially roads a priority. A N100 billion Sukuk bond was raised last year to fix key roads around the country a facelift.
AG Dangote is a joint venture between Andrade-Gutierrez of Brazil and the Dangote Group. AG was founded in 1948 in Brazil, and is one of the biggest construction firms in the country. Dangote Cement Plc closed at N215 in yesterday’s trading session on the Nigerian Stock Exchange (NSE) down 2.27 %. Year to date, the stock is down 6.52%.
Results for the half year ended June 2018 show revenue increased from N412 billion in 2017 to N482 billion in 2018. Profit before tax rose from N155 billion in 2017 to N185 billion in 2018. Profit after tax also increased from N109 billion in 2017 to N113 billion in 2018.