Dangote Cement's DANGCEM.LG export volumes fell 41% in 2019 due to a border closure in its home country of Nigeria, which is trying to combat smuggling, it said on Wednesday.

Nigeria closed its land border in August to curb smuggling of rice and arms, which it says threatens efforts to boost local production and security and to generate state revenues through import duties, the customs service has said.

Outgoing Dangote chief executive Joseph Makoju said the border closure led exports to drop to 0.5 million tonnes in 2019 from 0.7 million tonnes in the preceding two years. He said the company had exported to West and Central Africa from Nigeria.

Dangote's owner Aliko Dangote, also Africa's richest man, told Reuters last year he expected to export 8 million tonnes of cement in 2019, focusing on foreign markets to boost sales and generate much-needed hard currency.

Makoju said total production volumes last year stayed flat at 14.1 million tonnes.

The clinker mixer said higher discounts, marketing and haulage cost caused core profit to fall 9.1%, while margins slid 59.2%.

"We undoubtedly faced several challenges last year," Makoju told an analyst call.

Dangote Cement plans to commence a share buy-back program this year once it obtains regulatory approval.

The stock market has faltered this year after fears that the coronavirus outbreak in China would hit demand, one of Nigeria's major trading partners, and dampen growth. (Reuters)