Aliko Dangote, the chairman of Dangote Industries Limited, has revealed that the devaluation of the Nigerian naira created the biggest mess for the company in 2023.
Speaking at the annual general meeting of Dangote Sugar Refinery Plc on Tuesday, Dangote said the company is making efforts to ensure it pays dividends this year despite the challenges.
Dangote highlighted that the naira’s devaluation from N460 to N1,400 affected not only his company but also a significant number of businesses, especially those in the food and beverage industry. He noted that many of these companies would be unable to pay dividends this year due to the currency devaluation.
“The biggest mess created was actually the devaluation of the naira from N460 to N1,400,” Dangote said. “You can see almost 97 percent of the companies, especially in food and beverages businesses, none of them will pay dividends this year for sure, but we will try and get out of it as soon as possible.”
Regarding the suspended merger of Dangote Sugar Refinery with Nascon Allied Industries Plc and Dangote Rice Limited, Dangote explained that the Securities and Exchange Commission (SEC) wanted the rice factory to begin operations first. He assured that the company would reapply for the merger once the rice factory in Jigawa is commissioned.
Dangote also highlighted the company’s sugar master plan, which aims to enable Dangote Sugar to sell only locally produced sugar within the next four years. He emphasized that the implementation of the backward integration policy would provide the company with the best future in terms of stability and prevention of exchange rate losses.
By the grace of God, in the next four years maximum, our company should be producing what we are selling currently, all domestic, 100 percent domestic,” Dangote said, adding that any imported sugar would only be used to complement local production.
Credit: The Nigeria Lawyer