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Investor Presentaiton

Nigeria - Macro - Macro Economic Environment ■ % Nigeria transitioned to a new government in the second quarter after holding its 7th election cycle in March DANGOTE CEMENT ■ Economic Growth Nigeria's economy grew by 2.51% in the second quarter of 2023, faster than the 2.31% growth in Q1. The growth was underpinned by developments in the non-oil sector, which grew by 3.58%. In contrast, the oil sector contracted by 13.43%. The IMF forecast economic growth of 2.9% in 2023, slower than the 3.3% growth in 2022. Major downside to this outlook is tighter monetary stance due to accelerating inflation ■ Interest Rate The CBN hiked MPR eight-consecutive times over the last 12 months to 18.75%, in a sustained move to control accelerating inflation. One-year T-bills closed at 12.98%, higher than 8.49% in 2022, highlighting the upward trend in the yield curve in the period. The CBN resumed OMO sales in August after seven months of halting issuance of the short- term instrument. Exchange Rate In the second quarter, Nigeria floated the naira, allowing for market determined rates of the domestic currency. The naira weakened from N461.1/$1 at the end of 2022 to N769.3/$ at the end of September 2023 (65% devaluation). ■ External reserve stood at $33.2 billion as at end of September, down 10.4% from $37.1 billion as at year end 2022. ■ Total debt stock jumped to N87.4 trillion in H1 23, inclusive of N22.7 trillion advances from the CBN. Politics Big steps taken by President Tinubu to attract investors: - Fuel subsidy removal - FX market reform Peaceful transition of power after a keenly contested general election The President nominated Yemi Cardoso, as the new CBN Governor. Inflation Headline inflation rate accelerated to 26.72% YoY in September 2023, on the back of disruption in food supply and increases in import costs. ■ Food inflation quickened to 30.64% whilst core inflation rose to 21.8% in September. ■ Total trade stood at N24.8 trillion in H1 23, down 13% YoY. Both imports and exports were down 18.7% and 6.9% to N11.3 trillion and N13.5 trillion, respectively. Oil Production Nigeria's oil production averaged 1.2mb/d in Q2-23, down 14.7% and 19.2% YoY and QoQ, respectively. ■ Meanwhile, Brent Crude oil price averaged $81.9/b YTD to September, down by 20% YoY. Source: IMF, CBN, OPEC, NBS Investor Presentation Dangote Cement | Page 4
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