Dangote Cement Spent ₦196 Billion On Fuel And Power In 2021 Due To Inflation
Dangote Cement Plc has disclosed that fuel and power consumed by the company increased by 34.4% to N196.634 billion in 2021 from N146.342 billion in 2020. The Group Chief Financial Officer, Dangote Cement, Mr. Guillaume Moyen who disclosed this at the company’s 13th AGM said the increase was as a result of volume growth and inflationary pressures on the costs.
What the company is saying
Moyen said, “In total, manufacturing costs increased by 25.8% to N551.0 billion from N437.9 billion in 2020 while fuel and power consumed increased by 34.4% to N196.6 billion from N146.342 billion and materials consumed increased by 30% to N175.4 billion from N134.91 billion.
“The increase in Nigeria’s manufacturing costs was mainly driven by energy costs due to increased production volumes and price increases for gas which is pegged to the US Dollar. The Nigerian naira depreciated from N401/1US$ at the end of 2020 to N424/1US$ at the end of 2021.
“Thanks to our continuous cost control efforts, total selling and administrative expenses only rose by 19.6% to N256 billion in 2021 mainly from higher haulage expenses which are driven by volume, AGO costs and other general administrative expenses. Inflationary pressure and the foreign currencies’ conversion to Naira is driving part of this increase.”