Dangote Cement Develops Low-Cost Operational Strategy to Boost Efficiency
Dangote Cement Plc (DCP) has unveiled new measures aimed at improving energy efficiency, cutting operational costs, and reducing emissions across its operations.
Chief Executive Officer, Mr. Arvind Pathak, said the company is accelerating its transition from diesel to Compressed Natural Gas (CNG) powered trucks as part of a broader cost-optimisation strategy.
“Our strategic priorities remain focused on long-term value creation. We have made significant progress in further strengthening our cost architecture,” Pathak stated in comments on the firm’s unaudited results for the half year ended June 30, 2025.
Switch to CNG Trucks to Cut Haulage Costs
Haulage remains one of DCP’s biggest cost drivers, prompting the company to commission 1,500 CNG trucks in 2024, with another 1,600 to be delivered in phases. The shift is expected to reduce exposure to the volatility in diesel and coal prices, while improving environmental performance.
Increased Use of Alternative Fuels
In addition, Dangote Cement is increasing the use of alternative fuels (AF) in cement production. These include waste oil, refuse-derived fuel, used tyres, plastics, and biomass such as palm kernel shells, rice husks, mango seeds, coffee husks, and coconut husks.
Head of Sustainability, Dr. Igazeuma Okoroba, explained that the move supports waste management, enhances energy security, and creates green jobs. “Since 2019, DCP has diverted over 1.5 million tonnes of waste from landfill, preventing contamination of land and water sources. We have also led by example, inspiring smaller industries to adopt alternative fuels,” she said.
Cost-Reduction and Expansion Strategy
Board Director, Mr. Emmanuel Ikazoboh, has also reaffirmed the company’s commitment to aggressive cost-reduction strategies to navigate inflationary pressures, expand alternative fuel adoption, and reduce reliance on fossil fuels.
With a production capacity of 52 million tonnes per annum (Mta) across Africa including 35.25Mta in Nigeria — DCP is expanding further with new plants in Côte d’Ivoire (3.0Mta) and Itori, Nigeria (6.0Mta), which will raise total capacity to about 61.0Mta.
Pathak said the expansion will strengthen the company’s position in Africa, support its export strategy, and diversify revenue streams. “As we move into the second half of the year, we remain focused on driving innovation, strengthening our pan-African operations, and delivering sustainable returns to investors,” he noted.
Transforming Nigeria into a Cement Exporter
Through sustained investment, Dangote Cement has eliminated Nigeria’s dependence on imported cement and transformed the country into a net exporter of cement and clinker to neighbouring markets.
