By Abdul-Kadir Abdullah
In line with His Excellency, Governor Monday Okpebholo's vision for economic development of Edo State, the Edo State Investment Promotion Office (ESIPO) and the leadership of Dangote Cement held a significant Business Partnership Meeting at the company’s expansive cement factory in Okpella, Edo State, on Tuesday, April 29th, 2025.
The discussions centered on strengthening collaboration, addressing key operational challenges, and exploring opportunities for sustainable development within the region.
Hon. Amen Odigie, the Managing Director Edo State Investment Promotion Office (ESIPO), who led the investment promotion team, emphasized the government’s commitment to providing robust aftercare services to existing businesses like Dangote Cement.
He underscored the critical role of the company in Edo State’s economic growth, job creation, and infrastructure development during his address at the facility visit in Okpella. He added that Edo State, under the leadership of His Excellency, Governor Monday Okpebholo, is focused on creating a conducive and enabling environment for businesses to thrive.
Hon. Odigie noted:"We recognize that your journey as a major industrial player comes with its own set of opportunities and challenges. ESIPO is committed to being a proactive partner in your continued success. This visit is not just a formality, it's an opportunity for us to listen, to understand your current operations, to identify any areas where we can provide support, and to explore potential avenues for further collaboration and expansion"
"Edo State, under the leadership of His Excellency, Governor Monday Okpebholo, is focused on creating a conducive and enabling environment for businesses to thrive. This includes streamlining processes, ensuring security, and investing in infrastructure that supports industrial growth. We want to ensure that Dangote Cement continues to find Edo State a welcoming and profitable base for its operations"
The Plant Director of Dangote Cement, Engr. Mohammed Ismaeel, a veteran in the cement industry with 38 years of experience, highlighted both the successes and the hurdles faced by the company. A primary concern raised was the poor state of the 7.5-kilometer road infrastructure connecting the plant to the main road, significantly impacting logistics. Security also emerged as a critical issue, with the Plant Director referencing a past kidnapping incident involving ten employees. He stressed the need for enhanced security collaboration with both local and state government bodies.
Despite these challenges, the meeting also illuminated significant opportunities for mutual benefit. A key area of focus was waste management, specifically the high stripping ratio of the plant’s limestone reserves, which results in 1.5 tons of granite waste for every ton of limestone extracted.
Engr. Ismaeel proposed a collaborative effort to attract investors who could process this granite waste into valuable products like road construction materials, housing components, and granite tiles, potentially creating new jobs and revenue streams for the state. He also requested government support in identifying new limestone reserves to ensure the long-term sustainability of the plant.
Dangote Cement showcased its strong commitment to community development through its Community Development Agreement (CDA), signed in July of the previous year. The company allocates millions of naira annually for local projects, including scholarships for tertiary and secondary school students. Their Corporate Social Responsibility (CSR) initiatives also encompass the provision of security vehicles, plans for a community health facility in partnership with the Ministry of Health, and various other projects such as transformer installations, farmer support programme, youth training, and concrete road construction.
Tax considerations and cement pricing were also discussed. The company affirmed its full compliance with tax obligations and suggested benchmarking tax rates with neighboring states to enhance employee well-being. On pricing, Engr. Ismaeel clarified that the cost of cement is significantly influenced by the import of 95% of spare parts and the dollar-based pricing of gas, emphasizing that direct price comparisons with other countries are often misleading due to these factors.
Addressing community relations, the Plant Director acknowledged challenges with some local workers and welcomed ESIPO’s offer to organize town hall meetings to foster better communication and understanding between the company and the community. The importance of creating opportunities for local youth was emphasized, with ESIPO suggesting strategic planning to identify and develop local talent for future leadership roles within the company.
With a current staff strength exceeding 1,000 employees, a number attributed to the ongoing transition from construction to full operations, Dangote Cement highlighted its self-sufficiency in power generation through its two 30-megawatt generators.
