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How Dangote Cement Tackles Africa’s Waste, Climate Change Issues

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. . . Africa Cement Trade Summit Opens In Abidjan

 

The Group Managing Director of Dangote Cement Plc, Arvind Pathak has opened up to industry players on how the company is at the forefront to save the environment through sustainable production of cement with the utilisation of Alternative Fuels (AF).

He made the disclosure at the 12th Africa Cement Trade Summit (ACTS), which kicked off in Abidjan, Cote d’Ivoire.

According to Pathak, cement production is an energy-intensive process which consumes thermal energy of about 3.3GJ/tonne of clinker produced, and its electrical energy consumption is in the region of about 90 – 120kWh/tonne of cement.

He maintained that decarbonisation was no longer an option but a necessity, with the use of alternative fuels, such as municipal, agricultural, and industrial wastes, in the place of fossil fuels, which have been effective in emissions reduction.

Pathak was delivering a paper titled “Utilisation of Alternative Fuels as a Strategy for Sustainable Cement production in Africa” at the Summit organised by the Singapore-based Center for Management.

The summit had in attendance cement companies’ Chief Executives, Cement Industry Service Providers and other critical sector stakeholders from across the world.

According to the Dangote Cement CE, who was represented by the Group’s Head of Sustainability, Dr. Igazeuma Okoroba, AF as opposed to fossil fuels emit less CO2 when combusted and that agricultural biomass are known to be carbon neutral.

He noted that with the level of cement consumption worldwide reaching 4.2 billion tonnes in 2020 and as population is projected to grow by 12‑23% in 2050 due to rapid urbanisation, the demand for cement will also grow, therefore the need to prioritise the inclusion of alternative fuels in fuel mix is crucial to address climate change concerns.

He said the cement industry, which provides a vital material to meet Africa’s infrastructure deficit, generates 7% of the world’s CO2 emissions as the cement value chain involves the intensive use of energy for raw materials’ mining, crushing, mixing, drying, firing, clinker grinding, packaging and dispatch to customers.

This, he posited, places a critical demand on fuel sourcing and controlled energy usage, as almost every stage of the cement value chain produces CO2 emissions, with the bulk of emissions emanating from the firing process during clinker production in the kiln.

“From being the world’s largest bulk cement importers to self-sufficiency and now net exporters of cement to other countries, it is therefore not unexpected that Dangote Cement is one of the pioneer African companies in decreasing CO2 emissions through a fuel substitution strategy. Through reporting, Dangote Cement responds to the evolving environmental, and social challenges by disclosing investment priorities and progress on projects that address the issues.

“We also leverage sustainability reporting to ignite market growth. As part of this commitment, we began reporting in 2020 and received an initial rating of C on climate change. As the company’s actions improved, we rose to a B- and then achieved a B+ rating in 2022,” Pathak added.

According to him, “As a multinational present in many African countries, Dangote Group aims to become a regional leader in sustainability. Dangote Cement is dedicated to environmental sustainability and combating climate change. We have implemented a robust Climate Change Policy that aligns our operations with global climate goals. The Environmental Pillars of the company define the ways of entrenching sustainability by identifying, measuring and mitigating actual and potential environmental impacts of operations.”

Pathak revealed that the company’s goal is to continuously improve performance on energy efficiency, waste management, water consumption, and monitoring of greenhouse gas emissions. “As an African business, we believe that utilising alternative fuel is a critical decarbonisation lever for industries to address the continent’s climate change mitigation. Dangote Cement’s Alternative Fuel (AF) Project is an example of this mindset,” he said.

The Dangote Cement boss told his audience that in the wake of global climate shocks, decarbonisation is no longer an option but a necessary component to future-proof businesses in a rapidly changing world. He added that businesses must set clear and detailed short, medium, and long-term targets and decarbonisation strategies for each transition target.

“Indications are that companies that are likely to thrive in this new wave of climate consciousness are not only decarbonising but also thinking about how to shift the business into faster-growing areas.

“Our Board maintains oversight over sustainability reporting, which is essential for corporate success. Through this reporting, Dangote Cement responds to evolving environmental and social challenges by disclosing sustainability commitments and actions. As part of this commitment, we began reporting to the CDP in 2020 and received an initial rating of C on climate change. As the company’s actions improved, we rose to a B- and then achieved a B+ rating in 2022.

“We are one of the pioneer African companies in decreasing CO2 emissions through a fuel substitution strategy. This initiative focuses on substituting fossil fuels by using alternative fuels. The consequences of this strategy are already visible. Biomass and alternative fuels are said to have a lower environmental impact compared to conventional fuels but may produce some emissions.

“Dangote Cement’s efforts in providing access to adequate, safe, and affordable housing are consolidated in the Dangote seven sustainability pillars, themed “The Dangote Way”. Through the drive of the leadership on sustainability, we have a compelling challenge for deliberate programmes for the substitution of fossil fuels, with AF. This also contributes to Nigeria’s CO2 reduction commitments by 2060″, he added.

While admitting that the emissions challenge will tarry in the industry for a while, Pathak expressed optimism that the cement industry will continue to contribute to tackling climate change, besides the consequential benefit of CO2 emission abatement.

He noted that as urbanisation contributes to increase waste generated, Sub-Saharan Africa is predicted to become the prevalent region globally in terms of total waste generation, if the current trend persists. Low-income countries have also been at the receiving end of hazardous wastes from waste trades, which further compounded the waste situation.

“The Stockholm Convention on Persistent Organic Pollutants (POPs) which is a global treaty to protect human health and the environment from highly dangerous chemicals, describes the firing hazardous waste in cement kilns as the best available technique for treating dangerous waste because most cement kilns possess the conditions and equipment to treat hazardous waste. This is where Dangote Cement provides the solution to Africa’s waste problem”, he asserted.

“Beyond the management of Africa’s waste, AF is a lever to decarbonise cement manufacturing process. Regarding cost and policies in Africa, other options are improving the energy mix with increased use of transitional fuels, efficiency in cement production, design optimisation, and decarbonisation via CO2 sinks, such as reforestation and renewable energy for power generation,” he concluded.

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Group Credits PINL with Safeguarding Environment, Farms

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A group has given kudos to the Pipeline Infrastructure Nigeria Limited (PINL) for effective pipeline surveillance and community interventions during the recent flooding in parts of the Niger Delta.

The Niger Delta Progressive Alliance (NDPA) in a statement signed by its Convener, Nse Victor Udoh, noted that the PINL’s operational efficiency and sustained maintenance of pipeline corridors helped prevent additional environmental damage, preserve farmlands and protect aquatic ecosystems from threats associated with pipeline failures and oil spills.

According to the NDPA, annual flooding in the Niger Delta poses serious environmental risks, particularly when floodwaters come into contact with damaged pipelines, oil spills and illegal activities around oil and gas infrastructure.

The organisation noted that the recent flood season was different, as there were no reported cases of widespread oil contamination of floodwaters, dead fish or the spread of oil into farms and residential areas attributable to pipeline failures.

READ ALSO: DPRP Decries Rising Fuel Imports, Despite Strong Local Supply Capacity

It said the development underscored the importance of preventive pipeline management, stressing that effective infrastructure protection was often measured by disasters that were prevented rather than emergencies that attracted public attention.

According to the group, regular patrols, monitoring and right-of-way surveillance enabled PINL to identify and address potential threats before they escalated into major incidents.

It added that inspection, maintenance and repair activities had also contributed to maintaining the integrity of critical pipelines, especially during periods of heavy rainfall and flooding.

The NDPA further commended PINL for its interventions in flood-affected communities in Rivers, Bayelsa and Imo States.

It cited the company’s restoration efforts in areas previously affected by illegal refining, as well as empowerment programmes targeting women and youths in host communities.

Udoh said the initiatives showed that corporate social responsibility should go beyond occasional charitable gestures and become part of a sustained commitment to community welfare and development.

“We commend Pipeline Infrastructure Nigeria Limited, therefore, on two counts that this season has made inseparable: the efficiency of its service, tested by a flood and found equal to it, and the seriousness of its social responsibility,” he said.

He added that the group had observed that farms remained protected and waterways retained their ecological value despite the flooding.

“This season, our farms still stand where the water reached them. Our creeks still hold their life,” Udoh said.

The alliance maintained that infrastructure security and community welfare were closely linked in the Niger Delta, where pipelines pass through several communities and environmentally sensitive areas.

It urged PINL to sustain the standard, stressing that protection of critical national infrastructure, environmental preservation and improved host-community welfare should remain mutually reinforcing objectives.

The NDPA described PINL’s performance during the flood season as an example of how operational efficiency and responsible community engagement could combine to protect energy infrastructure and the environment.

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Dangote Threatens Petrol Importers’ Supply Over Product Blending

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As concerns continue to mount over product quality and allegations of blending of imported fuel with products refined locally against major oil marketers, the Dangote Petroleum Refinery and Petrochemicals (DPRP), is contemplating cutting off supplies to the culprits.

The proposed measure could take effect as early as this week, subject to further consultations and any last-minute intervention, according to sources familiar with the situation.

The grave concern is that some marketers are allegedly blending imported Premium Motor Spirit (PMS), also called petrol, with petrol purchased from the DPRP before distributing the resulting product in the market.

READ ALSO: Nestoil Boosts Oil Production with $28m Drilling Fleet

This has left the refinery concerned that such practices could make it difficult to distinguish between products it supplied and the products subsequently blended or handled by third parties.

“It is difficult to understand why we would invest heavily in producing high-quality petroleum products for Nigerians, only for those products to be mixed with imported products of uncertain quality and the resulting product to be associated with the refinery,” a senior official at the $20bn Lekki-based plant, who spoke in confidence due to the lack of authorisation to speak on the matter, stated.

The refinery has also raised concerns about what it called a lack of a standard laboratory and adequate quality-control infrastructure for imported petroleum products, particularly the capacity to independently verify and certify the specifications of products entering the Nigerian market.

The latest development comes barely days after the DPRP warned that rising petrol imports were forcing it to export excess stocks despite having sufficient capacity to meet Nigeria’s domestic demand.

The refinery said imported PMS accounted for approximately 43 percent of fuel supplied into the Nigerian market in July, saying the continued issuance of petrol import licences had created uncertainty over domestic demand and made production and inventory planning increasingly difficult.

The DPRP said it had consistently maintained sufficient inventory and reserved product volumes to guarantee steady supply to the Nigerian market, but argued that keeping large stocks indefinitely was becoming commercially unsustainable when it could not determine how much imported petrol would enter the country.

“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times. However, in an environment where significant volumes of imported PMS continue to enter the market through licences issued by the regulator, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely.”

The refinery said the surplus petrol that could not be absorbed by the domestic market would consequently have to be exported to regional and international markets.

The proposed restriction on sales to importing marketers now adds a new dimension to the refinery’s concerns, as Dangote moves from highlighting the commercial impact of rising imports to considering measures that would prevent marketers from sourcing its petrol while simultaneously importing competing products.

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Nigeria Beats 2026 Foreign Reserves Target, Hits $53.1b

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CBN Prohibits Foreign Banks' Rep Offices From Banking Operations

Nigeria’s economic fortune is benefiting from the Middle East crisis, as the impact of capital inflows from stronger crude oil earnings has seen her foreign reserves climb to record $53.1 billion, beating the $51.04 billion year-end target.

Data available on the Central Bank of Nigeria’s (CBN) website indicated that the reserves closed at $53.1 billion on August 24, which is the highest level in almost 18 years.

Any analyses of the growth shows that the difference in reserves position places the Nigerian economy in good stead, because it can cover over 12 months import.

It is noteworthy that Nigeria’s external reserves fuel the CBN’s capacity to support the local currency and meet external obligations, have continued to rise steadily, since the face-off between the United States and Iran.

Further analysis of the data displayed by the CBN showed that the liquid portion of the external reserves stood at $52.5 billion.

Biztellers reports that Brent crude traded around $87 per barrel, within the week, well above Nigeria’s 2026 federal budget benchmark of $64.85.

READ ALSO: Shell Endorses Regional Action Plan for Safe Helicopter Services

With the Middle East crisis not showing signs of abating, analysts believe the price rebound would largely bolster Nigeria’s fiscal revenues.

The line of thought is popular among those who know, because as a crude oil exporter, Nigeria will continue to earn more petrodollars, which they argue would support the domestic currency – naira’s stability, while pumping the volume of external reserves.

In its economic projections for 2026, the CBN targeted stronger oil earnings, foreign exchange market reforms and improved external capital inflows to achieve the year-end reserves projection.

According to analysts, the current reserves position reinforces the steady growth in Nigeria’s external buffers.

The founder/Chief Executive Officer of the Centre for the Promotion of Public Enterprise (CPPE), Dr Muda Yusuf, earlier hinted at a positive outlook for Nigeria’s external reserves as he does not see anything derailing the forex and fiscal reforms that have brought about stability and improvement in external reserves, as reported by The Nation.

Yusuf said: “Well, the outlook for me is positive because I don’t see anything derailing these forex reforms, fuel subsidy etc. It is these reforms that have brought about stability.”

The CBN data further showed that Nigeria’s external reserves have maintained a steady upward surge in recent months.

The reserves started June at $49.80 billion and crossed the $50 billion mark by June 5, reaching $50.12 billion.

On June 15, reserves had increased further to $50.81 billion before rising to the current position. The reserves stood at $51.9 billion on July 31, and continued.

The sustained increase reflects stronger foreign exchange inflows and improved liquidity conditions in the country’s external sector.

The CBN Governor, Olayemi Cardoso, said: “This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.”

The CBN’s decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion, Cardoso added.

The CBN boss had explained that although he had no idea where the fund for the backlog clearance would come from, when he assumed office, he believed it was the right thing to do, and gave investors his word.

He said: “Credibility is at the heart of any central bank. If you don’t have credibility, people do not trust you and they do not invest in your economy. When I took office, I made a promise we would pay the backlog, the verifiable backlog of monies that were owed by Nigeria to third parties.

“And it was, at the time, estimated at over $7 billion US dollars. And to be honest with you, I had no idea how I was going to do it, but I just felt it was not something to be negotiated.”

Cardoso explained that Nigeria needed to ensure that its integrity is maintained. Analysts believe the higher reserve level could enhance the CBN’s capacity to support exchange rate stability and meet external obligations.

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