Dangote Cement Adopts Strategies To Reduce Operational Costs

The Chief Executive Officer of Dangote Cement, Mr. Arvind Pathak, who made this disclosure, said the company is transitioning from diesel to Compressed Natural Gas (CNG) powered trucks, to reduce haulage costs.

Mr. Pathak, in his comments on the company’s half year unaudited results for the period ended June 30 2025, stated that, “Our strategic priorities remain focused on long-term value creation. We have made significant progress in further strengthening our cost architecture.”

With haulage being one of the biggest drivers of operational costs, DCP commissioned 1,500 CNG trucks in 2024, with phased delivery of an additional 1,600 trucks to support cost reduction initiatives.

This has helped to mitigate the impact that the volatility in the prices of traditional energy sources like diesel and coal have on operating costs.

The replacement of conventional fossil fuel with CNG will also enhance the company’s environmental efficiency.

In addition, DCP is ramping up the utilisation of alternative fuels (AF). Typical AF materials for cement production include waste oil, refuse derived fuel, used tyres, plastics and biomass such as palm kernel shells, rice husks, mango seeds, coffee husks, cotton lint, coconut husks amongst others.

According to the Head of Sustainability, Dr. Igazeuma Okoroba, “utilising these materials provide a waste management alternative to landfill as well as proffering a more sustainable energy mix for power and heat generation. This action will mitigate the adverse effects of these materials on the environment. Alternative fuels also reduce dependence on fossil fuel imports thereby improving energy security, lowering energy costs and creating economic opportunities through the provision of green jobs to our local communities.”

Dr Okoroba stated that, since 2019, DCP has diverted over 1.5 million tonnes of waste from the landfill which would otherwise have contaminated land and water sources.

“We have also provided leadership in the use of AF as smaller industries now see the benefit of utilising AF as biofuels for the generation of electricity”, she said.

It would be recalled that a Director on the Board, Mr. Emmauel Ikazoboh, during his acceptance speech, had equally identified cost reduction as one of his strategies.

He said, “we will implement robust cost-reduction strategies to navigate inflationary pressures and enhance our competitiveness. We will accelerate our efforts to adopt alternative fuels and technologies, reducing our reliance on fossil fuels and contributing to a more sustainable future.”

Dangote Cement Plc has about 52.0Mta capacity across the African continent with Nigeria accounting for 35.25Mta. Currently, additional greenfield plants are set for commissioning in Cote d’Ivoire (3.0Mta) and under construction in Itori, Nigeria (6.0 Mta) pushing total capacity to about 61.0Mta.

Mr. Pathak said that “this expansion in capacity will not only strengthen our position in Africa but also contribute meaningfully to our export strategy and revenue diversification. 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 our investors.”

Through investments geared towards expansion, Dangote Cement has succeeded in eliminating Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement and clinker, serving neighbouring countries.