Dangote Cement Plc is expected to pay a total of N40.39 billion in taxation to the nation’s treasury from its operational result in the first quarter of 2021.
According to the financial result published by the country’s largest cement manufacturer on Friday, April 30, 2021, the amount is due from corporate tax for the period ended March 31, 2021.
The amount of corporate tax due from Dangote Cement in the first three months of the year is more than 47.3 per cent if compared with the N27.42 billion paid in the corresponding period of 2020 financial year.
In addition, the company currently pays over N240 million Value Added Tax (VAT) daily to the government, making the company one of the biggest private sector tax payers in the country.
As part of the company’s corporate social responsibility along with the government’s quest to boost infrastructural development in the country, Dangote Cement opted to provide funding for the constructions of major roads in Lagos and Kogi States.
Further analysis of the financial report showed that the company ramped up production capacity in the Obajana Line 5 and resumed production at the Gboko plant to meet increased demand for its products.
Dangote Cement also increased total volume of cement sold in the first three months of the year from its Nigerian operations to 4.9Mt compared to the 4.0Mt sold in the first quarter of 2020.
Pan-African operations sold 2.6Mt of cement in the period under review compared to 2.3Mt sold in the corresponding period in 2020.
The cement maker said it’s making efforts to start the Okpella plant before the end of June in order to meet the increasing demand for cement in the country and help to moderate prices in the market.
Commenting on the financial result, Dangote Cement General Managing Director/Chief Executive Officer, Michel Puchercos, said that the company started the first quarter of 2021 on a positive note and recorded increases in revenue and profitability.
He stated that the cement company posted a profit after tax N89.7 billion.
“We took the strategic decision to pause our clinker exports to ensure we meet the rapid volume growth in the Nigerian domestic market. We are improving the output of our existing and new assets and aim to recommence clinker exports in the second quarter.
“One of our priorities in 2021 is to strengthen our alternative fuel initiative. It focuses on leveraging the circular economy business model, optimising costs and reducing exposure of our cost base to foreign currency fluctuations.
“As ever, we are committed to keeping our staff and communities safe by being fully compliant with health and safety measures in all our territories of operation,” he said.
Dangote Cement Plc is sub-Saharan Africa’s largest cement producer with an installed capacity of 48.6Mta across 10 African countries and operates a fully integrated business with activities covering manufacturing, sales and distribution of cement.
Dangote Cement is a subsidiary of Dangote Industries Limited, a diversified and fully integrated conglomerate as well as a leading brand across Africa in businesses such as cement, sugar, salt, beverages, and real estate, with new multi-billion dollar projects underway in the oil and gas, petrochemical, fertiliser and agricultural sectors.