As stakeholders across the country continue to hail Dangote Group
over the price slash in cement, the company yesterday stated that
the measure was not meant to promote monopolistic tendencies.
The federal government, stakeholders in the cement sector as well
as shareholders had hailed Dangote Cement for the huge
investments in cement as well as the recent slash in the price of
the commodity, describing it as unprecedented. However, a few
industry watchers have expressed concern that the move could
hand the company monopolistic advantages in the market.
But the group managing director of Dangote Cement Plc, Mr
Devakumar Edwin, has dismissed as baseless the accusation in
some quarters that the price reduction was intended to chase
away some manufacturers so that Dangote Cement could
monopolise the subsector.
Featuring on Lagos-based Channels Television business
programme, “Business Morning”, the Dangote Cement boss
explained that the price cut was purely a patriotic duty to the
citizens of the fatherland.
According to him, “What we have done is a patriotic decision in the
overall interest of Nigerians. We are in business to make money
and we know that the price cut would not affect our profit
margins. We are a Nigerian company; we have responsibility to
make the product available to our people at the most reasonable
price.
“As our production capacity increases, we found out that we could
reduce the price to help low income earners find it easy to build
their own houses and this is what we have done. Those
castigating us and crying of monopoly are those who want house
ownership to remain exclusive right of the rich.”
Maintaining that Dangote Cement likes competition, Edwin said it
was competition that encouraged the company to commit huge
investment into cement sector.
“We believe in competition and openness. We can defend our price
anytime and it’s only an enemy of Nigerians that would speak
against the price reduction,” he stated, declaring that Dangote
would continue to protect the buyers from the hands of profiteers
who might want to capitalize on the new price regime to create
artificial scarcity, one of the reasons the company has been
publicising the price cut in the media.
Support for the Dangote cement price cut has come from several
quarters.
Minister of Industry, Trade and Investment, Olusegun Aganga, who
led others at a stakeholders’ meeting in Abuja, said the decision of
Dangote Cement Plc. to bring down the price of cement was a
patriotic one in line with the aspiration of Nigerians and the
federal government.
He said: “Our main focus for the cement sector is to improve the
standard of cement and to bring the price down. More cement
manufacturers must do it themselves just as Dangote Cement has
done because we do not do price regulation.”
According to him, the federal government had attracted new
private sector investments in the cement sector to the tune of
$7billion within three years, a feat it was proud of.
Aganga’s statement came in midst of expression of surprise by
many who thought such price slash was not possible in the
next 10 years.
Chairman of the Trusted Shareholders Association, Mukhtar
Mukhtar, described the cement price slash as a positive
development for the Nigerian economy, adding that it would create
jobs, encourage the poor and middle class to build houses, and
bring down house rent in the long run.
“I want to, on behalf of shareholders, commend Aliko Dangote for
yet another feat,” he said.
Coordinator of the NGO Network, Mr. Muhammad Attah, said the
Dangote Cement deserves commendation, adding that the
company had invested more than any other firm in the cement
sector in the history of Nigeria.
The Company pegged the Dangote 32.5 cement grade at N1,000
per 50 kg bag, while the higher 42.5 grade is to sell for N1,150 per
bag.
The new prices, exclusive of the VAT, represents about 40 per cent
discount on the prevailing market prices of the product.
http://leadership.ng/news/390788/cement-price-cut-monopoly-dangote

Even if na for monopoly, we still like am like dat.

Ok na, let's see how this will end!

SirHouloo:
Even if na for monopoly, we still like am like dat.

Abi ooo... Monopoly to the advantage of the masses is one we are ready to embrace.

Go check d price now, barely a month after d stupid announcement. Miinimum is 1750 per bag now

Dangote what's wrong with thou? Cement is now 1745 from your factory. . .as in direct from your factory! Dealers are now selling 1800, 1900 and even 2000 naira as retail price! Which way Nigeria?

Paper price cut

175:
Dangote what's wrong with thou? Cement is now 1745 from your factory. . .as in direct from your factory! Dealers are now selling 1800, 1900 and even 2000 naira as retail price! Which way Nigeria?

The price cut lasted for only 6 weeks and most people did not buy at that slashed price. Yes I didn't because we were busy trying to sell off old stock at a loss.

He is reaping from distributors pocket.

Because by January 2015, latest by February, there will be another price slash lower than the previous N1,308. He is taking us for a ride..