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Dangote Group: Epitome Of Good Corporate Governance



Companies under Dangote Groups have shown their high standards of corporate governance and global best practice in Nigeria and in countries where they have business operations and in the international community generally.

Corporate governance is the system of rules, practices and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company’s objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.

The Dangote Group, which has interests in cement, sugar, flour businesses and oil and gas. It operates in Nigeria and some African countries, including Benin, Cameroon, Ghana, South Africa, Togo, Tanzania, and Zambia.

Four of Dangote’s companies listed on the Nigerian Stock Exchange (NSE) had a market capitalisation of N4.321 trillion. This value is about 30.85 per cent of N14.008 trillion, which was the total capitalisation of the equities listed on the Nigerian bourse as at June 8, 2018.

The companies include, Dangote Cement Plc, Dangote Sugar Refinery Plc, Nascon Allied Industries Plc and Dangote Flour Plc. An analysis of the companies indicate that Dangote Cement has the highest value of N4.018 trillion, which is 28.68 per cent of the total capitalisation of the equities market.

Dangote Sugar Refinery Plc trailed with N240 billion, Nascon Allied Industries has N59.347 billion, while Dangote Flour has a value of N53 billion.

Dangote Group said it is committed to setting the trend and being the point of reference for high standards of corporate governance and global best practice, in Nigeria, in countries where it has business operations and in the international community generally.

According to the Group, our key focus at all times is recognition of, and compliance with, all laws regulating the business environment. This practice is in consonance with our belief that good corporate governance is a means of sustaining viability of the business in the long term and maintaining the confidence of investors.

Dangote Cement believed that the attainment of business objectives is directly aligned to good corporate behavior as it provides stability and growth to the enterprise, saying in line with this objective and the need to meet its responsibility to its shareholders, the company strives to meet the expectations of both its operating environment, foreign investors and stakeholders in general.

Dangote Cement Plc holds firm to its guiding principles of transparency, accountability, good quality management and integrity through the adoption and monitoring of corporate strategies, processes and policies in order to comply with its legal and ethical environment. In addition to being the highest capitalised company in Nigeria and West Africa, Dangote Cement has also maintained the lead on corporate governance compliance with the Securities and Exchange (SEC) rules on Corporate Governance in Nigeria, the Investments and Securities Act (ISA), as well as the Listing Rules of the Nigerian Stock Exchange (NSE). This high level of commitment has culminated to Dangote Cement being one of the seven companies to be listed on the Premium Board of the NSE, which is limited to companies who have achieved the stringent rules and international standards prescribed by the Exchange.

Management of the NSE recently lauded Dangote Cement for its adherence to best corporate governance practices. Managing director/chief executive of the Exchange, Mr. Oscar Onyema gave the commendation while welcoming the Group managing director of Dangote Cement, Engr. Joe Makoju and his management team to the special sounding of the closing gong on the trading floor of the NSE.

Onyema who congratulated Engr. Makoju on his confirmation as the substantive chief executive of Dangote Cement described him as proper and fit for the role given his level of experience and years of exposure in the manufacturing sector.

He said that as the largest listed company on the Exchange and with other listed companies from the Group, Dangote Sugar Refinery, Dangote Flour and Nascon, any change in the management cadre is very important as it affects the stock market. He stated that Makoju’s tenure as the helmsman of Dangote Cement is yielding the expected results as increased investors’ confidence has resulted in good performance of the stock.

Oscar said, “The performance of the stock is very good and is a fallout of the resilience, expertise and diligence of the management team. It is listed on the premium board.”

He also appreciated the chairman of Dangote Cement on his efforts and advocacy for an improved and better capital market as well as sponsorship of NSE’s events. He called for more partnerships with Dangote Cement in terms of Corporate Social Responsibilities (CSR) projects.

Makoju in his response described it as an honour and privilege to be invited to participate and sound the closing gong noting that there exists a special relationship between Dangote Group and the NSE as Aliko Dangote was a former president of the Council of the Exchange. He said that Dangote Cement has grown from a national company to a continental one operating in several countries across Africa.

The doyen of Stockbrokers, Mr. Sam Ndata, on behalf of other stockbrokers congratulated Makoju and described him as a tested hand in the cement sector. He said, “there is no doubt that Dangote Cement will do well with you at the helm of affairs.”

It will be recall that the NSE in 2017, named Dangote Cement Plc as the Most Compliant Listed Company. The bourse said its decision was informed by the company’s demonstration of the highest degree of compliance with the rules and regulations regarding disclosure obligations of listed companies on the Exchange in 2017.

Most companies strive to have a high level of corporate governance and for many shareholders, it is not enough for a company to merely be profitable, it also needs to demonstrate good corporate citizenship through environmental awareness, ethical behavior and sound corporate governance practices.