MORGANABLE INVESTMENT WATCH
Dangote Cement shares surged by 10 per cent on Friday, October 23, closing at ₦1,111 on the Nigerian Exchange (NGX). The rally followed reports that billionaire investor Femi Otedola was buying the company’s shares again.
Akure —
Dangote Cement shares surged by 10 per cent on Friday, October 23, closing at ₦1,111 on the Nigerian Exchange (NGX).
The rally followed reports that billionaire investor Femi Otedola was buying the company’s shares again.
The increase pushed the company’s market capitalisation to approximately ₦18.75 trillion, strengthening its position among Nigeria’s most valuable listed companies.
Nairametrics reported the development on October 24, citing sources familiar with the matter. According to the report, Otedola was targeting a stake of up to five per cent in the cement producer.
However, the publication could not independently verify the reported purchases or establish whether they caused the share-price increase.
The stock’s performance attracted attention because Dangote Cement had experienced a pullback after reaching higher levels earlier in the year. Its latest rally therefore marked a significant recovery.
Nevertheless, the reported investment remains unconfirmed, and investors should distinguish the verified market figures from claims about Otedola’s activities.
SHARES RECORD STRONG GAINS
Dangote Cement closed at ₦1,111 on Friday, gaining ₦101 from its previous closing price of ₦1,010.
The stock recorded a trading volume of approximately 2.71 million shares, valued at about ₦2.85 billion. Its market capitalisation reached roughly ₦18.75 trillion during the session.
The latest advance followed a period of weaker performance. Dangote Cement started the year at approximately ₦609 per share and climbed to around ₦1,180 in June.
However, the stock later declined below ₦900 before recovering during subsequent trading sessions.
Friday’s increase brought the share price back above ₦1,100. It also raised the stock’s gain since the beginning of the year to approximately 82 per cent.
Although the performance points to a strong recovery, the share price remained below its June peak.
The broader Nigerian stock market also recovered on Friday after two consecutive sessions of losses. The NGX All-Share Index rose by 0.92 per cent to close at 247,222.27 points.
Meanwhile, the total value of listed equities increased by approximately ₦1.47 trillion to ₦160.52 trillion.
Other major stocks contributed to the recovery. First HoldCo also gained 10 per cent, while Fidelity Bank advanced by 9.09 per cent.
However, more stocks declined than advanced during the session, showing that the gains did not extend across the entire market.
OTEDOLA REPORTEDLY TARGETS FIVE PER CENT
According to sources cited by Nairametrics, Otedola is seeking to build a five per cent stake in Dangote Cement.
The report suggested that the investor was looking for opportunities in companies he considers undervalued.
However, the publication did not disclose the number of shares he had allegedly purchased or the amount he had spent.
It also could not independently confirm the size of the stake he intends to acquire. Consequently, the reported target should not be treated as a completed transaction.
A five per cent holding would represent a substantial investment in Dangote Cement.
At Friday’s closing price, such a stake would be worth approximately ₦937 billion, based on the company’s reported outstanding shares.
This figure represents an estimate of the potential value, not the amount Otedola has confirmed spending.
The company’s ownership structure makes the reported target particularly significant. Dangote Industries owned 86.65 per cent of Dangote Cement at the end of 2025, leaving less than 10 per cent of its shares in free float.
Free float refers to shares available for public trading rather than those held by controlling shareholders and other strategic investors.
Therefore, a five per cent stake would represent a substantial portion of the shares available to outside investors.
However, the actual market impact would depend on the number of shares purchased, the timing of the transactions and prevailing investor sentiment.
A PREVIOUS INVESTMENT IN DANGOTE CEMENT
The reported buying would follow Otedola’s earlier investment in Dangote Cement in 2024. At the time, he publicly expressed confidence in the company’s long-term prospects, highlighting its export capacity, dividend record and corporate governance.
He pointed to the company’s ability to export cement and generate foreign exchange. He also praised its history of dividend payments and its approach to corporate management. These factors formed part of the explanation for his earlier investment.
Otedola has also built a significant position in First HoldCo, the financial services group that owns First Bank of Nigeria.
His investments in major Nigerian companies have attracted attention because of their potential influence on market sentiment.
Nevertheless, his previous investment does not confirm the latest reported purchases. Until he or an appropriate official disclosure confirms the transactions, the extent of any new holding remains uncertain.
COMPANY PERFORMANCE AND INVESTOR INTEREST
Beyond the reported investment, Dangote Cement’s financial performance remains an important consideration for shareholders.
The company is one of Africa’s largest cement producers, with operations in Nigeria and other African markets.
Its performance depends on cement demand, production costs, energy prices, distribution networks and construction activity.
The company’s 2025 financial results showed group revenue of approximately ₦4.31 trillion, representing an increase of about 20 per cent from the previous year.
Group earnings before interest, tax, depreciation and amortisation also rose to approximately ₦1.98 trillion.
Furthermore, the company reported a group net profit of about ₦1.02 trillion for 2025, more than double its previous year’s result.
These figures provide important context for investors assessing the company’s financial position and growth prospects.
However, strong financial results do not guarantee continued share-price increases. Investors must also consider valuation, operating costs, economic conditions and the possibility of future market corrections.
For now, the confirmed development is Dangote Cement’s 10 per cent share-price increase on October 23.
The report of Otedola’s renewed interest has generated attention, but his alleged purchases and five per cent target remain unverified.
Further confirmation would clarify whether the billionaire investor has increased his holding and how his reported plans could affect the company’s ownership structure.
