The Federal Government has allowed Dangote Cement to resume exports across its land borders, raising hopes that the country may be opening up trade with neighbours after a year-long blockade.
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President Muhammadu Buhari‘s administration gave its authorisation for Africa’s biggest producer to export cement to Niger and Togo in the third quarter for the first time in 10 months, Michel Puchercos, Chief Executive Officer, said on an investor call in Lagos. The export was made possible “through authorisation given by this administration,” he said.
The exemption to Dangote Cement is seen as a softening of the government’s position on a border closure that started in August last year, and could open the way for other businesses to fully resume exports across the country’s land barriers, Bloomberg reports.
Nigerian authorities closed borders with neighbouring countries, including Benin and Niger, to curb smuggling and boost local production. Although the blockade encouraged the consumption of locally grown produce such as rice, it hurt factories across West Africa, which rely on Nigeria’s market of 200 million people.
Dangote resumed land export with “restricted volumes,” and plans to grow the trade using the sea channels, according to Puchercos.
The Lagos-based company’s plan to buy back some of its shares has been delayed by market volatility and low liquidity, which have affected valuation, Guillaume Moyen, acting Chief Financial Officer said at the same conference call
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