June 12, 2017/Daily Trust

By Sunday Michael Ogwu

Undeterred by the economic challenges faced in 2016, the board of Lafarge Africa Plc has offered its shareholders a dividend of N1.05 gross per share at its annual general meeting, amounting to N5.8billion, which represents 34.7 per cent of net income after taxation.

Demand for cement which had grown steadily for the past five years up till 2015 flattened in 2016 when oil prices dropped remarkably; consequently leading to the devaluation of the Naira and limiting government expenditure, a critical driver of activity in the construction sector.

Growth was also subdued in South Africa during the same period as the economy slowed down, and imported cement flooded the market.

Following the economic slowdown in 2016 in the construction sector in Nigeria and in South Africa, Mobolaji Balogun, Chairman of Larfarge, said the board took measures to reduce the effect of the devalued Naira by successfully commissioning the new line in Mfamosing, as well as the transformation of the company.

Michel Puchercos, the Country CEO of Lafarge Africa remarked that: “The plan is to increase the use of alternative fuel (biomass) and locally mined coal to lessen production disruptions due to gas supply shortages.”