Despite N1.6trn Revenue, Dangote Cement Cuts Spending On Corporate Social Responsibility By Over 46%

… As BUA, Lafarge Increase CSR Spending

Dangote Cement Plc which is Africa’s biggest cement manufacturer owned by billionaire businessman, Aliko Dangote, has cut its spending on Corporate Social Responsibility (CSR) by 46.3 per cent despite declaring mega revenue and profit from its operations in Nigerian communities.

The company’s spending on CSR was reduced from N3.53bn spent in 2021 to N1.89bn by the end of 2022.

Huge social responsibility initiatives are expected from cement companies considering the health hazards their activities could cost the communities where they reside.

According to the United States Environmental Protection Agency, the emissions of Sulfur dioxide (SO2) from cement plant into the environment in high concentrations could affect breathing and may aggravate existing respiratory and cardiovascular diseases.

This has aggravated the debates on why cement manufacturers should give more to the communities where they operate.

Although the company’s accounts did not provide reasons for the surprise cut, it is unrelated to its revenue or profit positions.

In 2022 full year, Dangote Cement posted record revenue of N1.61trn up from the N1.38trn recorded in 2021.

The cement maker also posted an impressive profit after tax which amounted to N382.3bn, higher than the N364.4bn posted in 2021.

Dangote’s market capitalisation on the Nigerian Exchange Limited is N4.8trn.

Dangote’s competitors in cement manufacturing like Lafarge WAPCO and BUA Cement Plc are raising their spending on CSR in the communities where they operate.

For instance, despite earning just N360.9bn revenue, less than a quarter of Dangote Cement’s revenue, BUA Nigeria’s second biggest cement maker spent N1.07bn on CRS compared.

The company spent N1.02bn that the company spends in 2021 when its revenue was N257.32bn.

BUA’s most notable CRS spendings were the construction of Afokpella – Camp concrete road – Okpella; Annual development levy- Okpella town and 10 units of pick-up double cabin van for Okpella vigilante security among 27 other projects.

BUA’s Market capitalisation is N3.1trn.

Lafarge, another cement manufacturer in 2022 spent N761m on diverse social investment programs and initiatives in Nigerian communities from its 2022 revenue of N373.2bn.

Lafarge increased its spending from N604.1m in 2021. In 2021 its revenue was N293.1bn.

Larfage has a market capitalisation of N415.6bn.