The impact of the foreign exchange restrictions by the CBN seems to have gotten to Dangote Group, the largest conglomerate in West Africa, as the company has said it is struggling with a tightened supply of foreign exchange, and is relying on its international cement operations and export-credit agencies to get around the shortage.
The Group Executive Director, Dangote, Devakumar Edwin, revealed this in an e-mailed response to Bloomberg on Wednesday.
“The forex situation is extremely tight in Nigeria, but Dangote Cement is already generating income in foreign exchange in Ethiopia, South Africa, Tanzania, Senegal and Cameroon. Further, we are also making financing arrangements through export-credit agencies for the first time.”
Though the Central Bank of Nigeria (CBN) has pegged the naira at 197 to 199 per dollar since March 2015 to stem its slide, skeptics believe that the CBN is hoarding dollars and only selling to people they feel “need” dollars the most.
Aliko Dangote has vehemently opposed the devaluation of the naira telling anyone who cares to know that he supports CBN policies, his company is seeking to increase sales and protect market share at its cement unit in Nigeria, amid weaker demand, while expanding elsewhere in sub-Saharan Africa and Asia.
