Dangote loses n2bn monthly to apapa traffic jam
A very interesting and timely topic!
According to a report by The Punch, Africa's richest man, Aliko Dangote, loses a whopping N2 billion (approximately $5.5 million) every month due to the notorious Apapa traffic jam in Lagos, Nigeria.
The report states that Dangote's company, Dangote Cement Plc, has to spend a significant amount of money on fuel, maintenance, and other expenses due to the prolonged traffic congestion on the Apapa-Oshodi Expressway, which is a major route for the company's trucks.
The Apapa traffic jam has been a major headache for many businesses and residents in Lagos, causing delays, increased costs, and lost productivity. The situation has been exacerbated by the ongoing construction work on the Apapa-Oshodi Expressway, which has reduced the road to a single lane in some areas.
Dangote Cement Plc, which is one of the largest cement producers in Africa, relies heavily on the Apapa-Oshodi Expressway to transport its products to customers in Lagos and other parts of the country. The company has reportedly been forced to divert its trucks to alternative routes, which has increased its transportation costs and reduced its profit margins.
The report quotes the company's spokesperson, Mr. Anthony Chiejina, as saying that the Apapa traffic jam has had a significant impact on the company's operations and finances. "The traffic congestion on the Apapa-Oshodi Expressway has increased our transportation costs by over 50%, which has affected our profit margins," Chiejina said.
The Lagos State Government has been working to alleviate the traffic congestion on the Apapa-Oshodi Expressway, but the situation remains challenging. The government has promised to complete the reconstruction of the road by the end of 2023, which should help to reduce the traffic congestion and alleviate the financial burden on businesses like Dangote Cement Plc.
In the meantime, Dangote Cement Plc is exploring alternative transportation options to reduce its reliance on the Apapa-Oshodi Expressway. The company has reportedly invested in a new fleet of trucks and is also exploring the use of rail transportation to move its products.
Overall, the Apapa traffic jam is a major challenge for businesses like Dangote Cement Plc, and it highlights the need for the government to prioritize the development of infrastructure in Lagos and other parts of the country.