In a strategic move to boost stakeholder value, Dangote Cement Plc (DCP) is aggressively implementing measures to enhance energy efficiency and reduce its operational costs and emissions.
The company's initiatives include a large-scale transition from traditional fossil fuels to cleaner energy sources, as detailed in its recent half-year unaudited results for the period ending June 30, 2025.
According to Dangote Cement's Chief Executive Officer, Mr Arvind Pathak, the company is making significant strides in strengthening its "cost architecture" by prioritising long-term value creation.
A key part of this strategy is the shift from diesel to Compressed Natural Gas (CNG) powered trucks, which will substantially lower haulage costs, one of the largest drivers of operational expenses.
Dangote Cement commissioned 1,500 CNG trucks in 2024 and is in the process of phasing in an additional 1,600 vehicles.
This shift not only mitigates the impact of volatile diesel prices but also improves the company's environmental footprint.
In addition to the CNG transition, Dangote Cement is ramping up its use of alternative fuels (AF) for cement production.
Dr Igazeuma Okoroba, the company's Head of Sustainability, explained that these materials, which include waste oil, used tires, plastics, and various forms of biomass like palm kernel shells and rice husks, serve a dual purpose.
They provide a sustainable waste management solution, diverting over 1.5 million tonnes of waste from landfills since 2019, while also offering a more sustainable energy mix for power and heat generation.
Dr Okoroba emphasised that this move reduces dependence on fossil fuel imports, thereby enhancing energy security, lowering costs, and creating new green jobs within local communities.
The company's leadership in this area has also inspired smaller industries to explore the use of biofuels for electricity generation.
This aligns with comments from Mr Emmanuel Ikazoboh, a Director on the Board, who previously highlighted cost reduction and the adoption of alternative fuels as a key strategy to navigate inflationary pressures and build a more sustainable future.
Beyond its energy initiatives, Dangote Cement is also focused on aggressive expansion.
With a current capacity of approximately 52.0 million tonnes per annum (Mta) across Africa, including 35.25 Mta in Nigeria, the company is poised for further growth.
New greenfield plants are slated for commissioning in Côte d’Ivoire (3.0 Mta) and Itori, Nigeria (6.0 Mta), which will push its total capacity to roughly 61.0 Mta.
Mr Pathak noted that this expansion will strengthen Dangote Cement's position on the continent and significantly contribute to its export and revenue diversification strategies.
Through these strategic investments and expansions, Dangote Cement has successfully transformed Nigeria from a cement importer to a net exporter, serving neighbouring countries and solidifying its market dominance in Africa.
The company's focus on cost reduction, energy efficiency, and sustainable practices positions it for continued growth and long-term value creation in an evolving market.
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