After stepping down as chairman of Dangote Sugar in June, Aliko Dangote is also stepping down as chairman of Dangote Cement. He is refocusing on the Lekki refinery, fertilizers, and petrochemicals, capital-intensive sectors where he retains direct control.
Aliko Dangote (photo) is no longer chairman of Dangote Cement. The decision, approved by the board of directors on Friday, July 25, marks a new stage in the restructuring of his industrial empire. At the head of one of the continent’s largest industrial flagships, the Nigerian businessman is handing over the reins to Emmanuel Ikazoboh, former president of Deloitte West and Central Africa, to lead the cement company.
This withdrawal comes a few weeks after he stepped down as president of Dangote Sugar Refinery in June. These two companies, listed on the Nigerian Stock Exchange, have long been the visible pillars of his diversification and industrialization strategy.
The announcement comes as Dangote Cement has just posted its best results in six years, with net profit tripling to $202 million in the second quarter, driven by the stability of the naira and high cement prices.
A strategic refocusing on key sectors
However, these departures should not be interpreted as a withdrawal. “He is stepping down as chairman and retiring from the board of directors to devote more attention to his other major projects, including the Dangote Petroleum Refinery, petrochemical and fertilizer plants, and government relations,” said Anthony Chiejina, head of branding and communications for the Dangote Group.
While the objective is to complete the vertical integration of its energy activities, while strengthening the group’s role in African agriculture through fertilizers, this refocusing is also explained by the nature of the sectors concerned. They require heavy investment, are highly regulated, have little exposure to direct competition, but remain dependent on political and institutional parameters. These are all areas where Dangote’s personal presence is considered crucial.
Cement and sugar are thus becoming consolidated divisions, while refining, fertilizers, and petrochemicals now form the new center of gravity of the group’s industrial strategy.
