Dangote Cement Signs $800 Million Itori Expansion Deal to Double Production Capacity
Itori Cement Plant Set to Double Capacity Under $800 Million Expansion
Dangote Industries Limited has signed a Memorandum of Understanding (MoU) worth more than $800 million with China's Sinoma International Engineering Co. Ltd. to expand the Dangote Cement plant in Itori, Ogun State. The investment will double the facility's annual production capacity from 6 million to 12 million metric tonnes, reinforcing Nigeria's position as one of Africa's leading cement producers and exporters.
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The agreement was signed by Dangote Group President Aliko Dangote and Sinoma Chairman Lin Zhong, extending a long-standing partnership that has delivered several major cement production facilities across Africa. Once completed, the expanded plant is expected to serve both the domestic market and export destinations across the continent.
Capacity Expansion to Support Growing Demand
According to Dangote, the expansion is part of the company's long-term growth strategy and aligns with its Vision 2030 objective of increasing total cement production capacity to between 90 million and 100 million metric tonnes annually.
The company said the additional capacity will help meet rising domestic demand driven by infrastructure projects while significantly expanding exports to African markets. The investment is also expected to generate foreign exchange earnings, create employment opportunities and strengthen Nigeria's manufacturing base.
Backing Infrastructure Development
Dangote attributed the expansion partly to the Federal Government's growing emphasis on the use of concrete in road construction and other infrastructure projects.
Industry observers believe increased cement production capacity could improve supply reliability, support large-scale infrastructure programmes and enhance Nigeria's competitiveness under the African Continental Free Trade Area (AfCFTA).
Implications for Housing and Real Estate
The expansion carries significant implications for Nigeria's housing and construction sectors.
Higher cement production capacity could improve product availability for residential and commercial developments while supporting government efforts to accelerate infrastructure delivery. Although increased supply does not automatically translate into lower cement prices, it could ease supply constraints over the medium term and provide greater certainty for developers planning large-scale housing projects.
The investment also reinforces Ogun State's growing role as one of Nigeria's leading industrial and manufacturing hubs, with potential spillover benefits for logistics, employment, housing demand and commercial real estate.
Why It Matters
Cement remains one of the most critical inputs for housing and infrastructure development in Nigeria.
Large-scale investments in domestic manufacturing strengthen local production, reduce dependence on imports and improve the industry's capacity to support national construction programmes. Increased export capacity also generates foreign exchange, contributing to broader economic growth and industrialisation.
Outlook
Upon completion, the expanded Itori facility will become one of Dangote Cement's largest production and export hubs in Africa. The project is expected to strengthen Nigeria's manufacturing sector, support infrastructure development and enhance the long-term outlook for housing construction, regional cement exports and industrial investment.
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