Corporate Tax

Dangote Cement: N97 billion to be paid in corporate tax

Dangote Cement Plc has maintained its position as a major economic driver with a tax burden of N97 billion for the fiscal year ended December 31, 2020.

The company also proposed a dividend of N16 per share.

According to the audited results of the cement group of companies published on the Nigerian Stock Exchange (NSE), the tax burden represents an increase of 95 percent compared to the sum of N 50 billion recorded in 2019.

Dangote Cement’s Nigerian operations sold 15.9 million tonnes for 2020 in the reporting period compared to 14.1 million tonnes in 2019.

This includes both cement and clinker sales, which means growth of 12.9 percent for 2020 as a whole.

In terms of domestic sales alone, the Nigerian companies sold 15.6 million t, an increase of 14.3 percent compared to the previous year, which led to an increase in market share.

The turnover of the Nigerian operations rose by 18.0 percent to N 720.0 billion due to the demand on the domestic market.

This volume growth was fueled by a successful innovative national consumer promotion, ‘Bag of Goodies – Season 2’, and lower rainfall in the third quarter compared to last year.

During this period, the cement company inaugurated its gas-fired power plant in Tanzania.

The cement company had a strong performance not only at the top but also at the bottom due to cost saving measures.

Despite inflationary pressures and currency volatility, disciplined cost control measures allowed the company to maintain the relatively low cost of cash per ton.

The cost control measures include improved plant efficiency, a better fuel mix and general overhead optimization.

In response to the development, Dangote Cement’s CEO Michel Puchercos said: “2020 was a good year for Dangote Cement across the board. Several innovations made 2020 a productive year, such as our first clinker consignment, first bond issue and the successful buyback program.

“We increased our capacity in Nigeria by three Mt, inaugurated our two export terminals and our gas-fired power plant in Tanzania. All of this was achieved while focusing on protecting our employees, customers and communities from the effects of the pandemic.

“Dangote Cement had strong sales growth supported by strong cement demand. Profitability was further strengthened by our disciplined cost control in what we believe to be a highly inflationary and volatile year. These measures resulted in a 37.7 percent after-tax profit increase to N276.1 billion. “

Looking ahead, Puchercos said, “We have strengthened our alternative fuels initiative, which focuses on leveraging the circular economy business model and reducing the risk of our cost base for currency fluctuations. We continue to integrate Dangote Cement’s seven pillars of sustainability into every aspect of our business and culture. “

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