On the directive by the Federal Government to producers of cement to reduce the price, he said the increase in price of fuel diesel contributed to the high price of the commodity.

"What we have to look at is that cement is a very cheap product and at the company level we sell at about N1,500 but of course diesel has gone up from N80 to N160 while transporters have taken an opportunity to increase the price.

"We cannot put them out of business but we will make sure we inject additional 5,000 trucks to bring down the cost of transportation," he said.

[url=http://dailytimes.com.ng/article/court-hear-dangote%E2%80%99s-appeal-october]More at source[/url]

hop this works

I once made arrangements to bring cement into the country, but had to back track due to exclusivity of licenses and the cost. I still have my contacts and I can land a bag of good portland cement to PH at a cost of N350. Add extra N50/ bag to take care of transport and logistics from PH + and another N100 forrelevant duties, 

I am confident that in a truely free market economy, that I will make a killing by selling at N800/bag unless already established titans are ready to go to a price war with me in which case, they would only win by dipping below N550. The level of protection without regulation offered to a few entities in Nigeria, has encouraged hyper inflation indused by over prising e.g cement and telecoms.

Totally deregulate the cement industry or apply stringent control and stiff penalties. This is why I think that govt should have rival  non-subsidised profit oriented bodies in key sectors to provide stiff challenges to companies with a tendency to monopolise the market.

How can you ask a public company to lower their prices? Dangote has to pass on the operating cost to the customers in order to make a profit. Asking him to lower the price will cut into the bottom line.

Companies are here to make money.

I was surprised to hear that it cost N400 per bag in China. One importer Mr Iweta lamented the monoploy being enjoyed by dangote as killing the competition. He said he can sell at a lower price if allowed to import into Nigeria.

dustydee:

I was surprised to hear that it cost N400 per bag in China. One importer Mr Iweta lamented the monoploy being enjoyed by dangote as killing the competition. He said he can sell at a lower price if allowed to import into Nigeria.

That is probably right. We know how Nigeria likes to protect Dangote's industries, but allow other industries in certain sectors to compete with suppliers from other countries, mainly China.

dustydee:

I was surprised to hear that it cost N400 per bag in China. One importer Mr Iweta lamented the monoploy being enjoyed by dangote as killing the competition. He said he can sell at a lower price if allowed to import into Nigeria.

i am surely you will be the first to shout substandard when such cement are brought into the country,

md4real:

i am surely you will be the first to shout substandard when such cement are brought into the country,

what will make it substandard? is it because it is from China or because it costs N400? We have SON and if they fail to do their Job then don't blame me.

FACE:

I once made arrangements to bring cement into the country, but had to back track due to exclusivity of licenses and the cost. I still have my contacts and I can land a bag of good portland cement to PH at a cost of N350. Add extra N50/ bag to take care of transport and logistics from PH + and another N100 forrelevant duties, 

I am confident that in a truely free market economy, that I will make a killing by selling at N800/bag unless already established titans are ready to go to a price war with me in which case, they would only win by dipping below N550. The level of protection without regulation offered to a few entities in Nigeria, has encouraged hyper inflation indused by over prising e.g cement and telecoms.

Totally deregulate the cement industry or apply stringent control and stiff penalties. This is why I think that govt should have rival  non-subsidised profit oriented bodies in key sectors to provide stiff challenges to companies with a tendency to monopolise the market.

You don't seem to be in debt, a family friend of ours is in a N300m naira debt, after importing bagging equipments, the good for nothing whoever refused him license. Dangote is a rogue, cement can be sold in this country for very little when it is imported. If producing doesn't favour dangote, then he should turn his factories into bagging plants

blink182:

You don't seem to be in debt, a family friend of ours is in a N300m naira debt, after importing bagging equipments, the good for nothing whoever refused him license. Dangote is a rogue, cement can be sold in this country for very little when it is imported. If producing doesn't favour dangote, then he should turn his factories into bagging plants

That's what you get when market is semi-deregulated and skewed in favour of a few bodies, leading to near monopoly. Dangote and co are not going to do less than 700% profit margin as long as all the players are comfortable with their slices and patches of the market. I also think that they are involved in price fixing as well and the prices are not going to come down as a result of competition but maybe as "goodwill" gesture from the players or by executive fiat.

Take fuel importation as another example where import licenses are held by a select few with govt subsidy to back them up, why wont they be wealthy beyond imaginations ?

How about the GSM companies that recouped their investments within 3 years by providing services. If you invest billions, you are expected to make operational profits every year, but to recoup your billions including capital expenditure within 3 years is taking the mick.

Sometimes, govt needs to protect consumers by weighing in on excessive pricing of commodities, expecially when such pricing are reflected on your profits.

Goodluckshould please open borders for cement importation since these capitalists are lying to us that they produce at N1,500. N1,500 is high, very high to produce a bag of cement. Dunlop and michelin left this country because they were not allowed the monopoly, rather FG made the environment uncomfortable for them to survive while at the same time making the environs comfortable for importation because Dangote wasn't into tyre manufacture.

Why did FG ban cement to make the environs comfortable for dangote and other while the prices are very very cheap outside the country. For all these years, they should have positioned themselves to a high position for exportation meaning their prices and quality are suppose to compete with world market but the reverse is the case.

Let them bring down the prices or FG should open the borders for cement importation so that they will either reduce their prices or go out of market

Theres one thing i dont see people talking about COOOOOSSTT!!!, To me I dnt think its just the prices of cement, if you look at the rate of inflation generally in Nigeria is just jumping higher and higher, from cost of electricity to cost of fuel to cost of transportation to cost of employment everything add adds up to business cost whether fixed or variable. Hence it has to be passed on to the consumers unless( The government is ready to subsidies, of which they do not have the money) and again if you look at nigeria as a whole i think the pries of cement should actually be coming down because there is so much demand construction here and there, but u kno ppl like dangote would like to cash in on it, Would also like to correct one impression that people say DANGOTE IS A MONOPOLY, ? The man jus got economies of scale, if you do something better than your competitors it doesnt make u a monopoly, does it>?

youngmonie:

Theres one thing i dont see people talking about  COOOOOSSTT!!!, To me I dnt think its just the prices of cement, if you look at the rate of inflation generally in Nigeria is just jumping higher and higher,  from cost of electricity to cost of fuel to cost of transportation to cost of employment  everything add adds up to business cost whether fixed or  variable. Hence it has to be passed on to the consumers unless( The government is ready  to subsidies, of which they do not have the money) and again if you look at nigeria as a whole i think the pries of cement should actually be coming down  because there is so much demand  construction here and there, but u kno ppl like dangote would like to cash in on it, Would also like to correct one impression that people say DANGOTE IS A MONOPOLY, ?  The man jus got economies of scale, if you do something better than your competitors  it doesnt make u a monopoly, does it>?

So what is he doing better than his competitors, you mean sponsoring OBJ and Goodluck and then get his way. I don't even think someone like Dangote pays Duties.This nonsense just have to stop. Some people have mentioned here already their interest in bringing in cement but got frustrated

Honestly i dont have respect for people like Dangote,Adenuga and other rich men in nigeria because they collude with Govt to milk the public, How dare u have exclusive licence of cement and u will not be a billionaire, Give that opportunity to an idiot and he becomes a billionaire as well,

I only have respect for pple like WARREN BUFFETS,STEVE JOBS,BRANSON,GATES etc who made their money through hardwork and intelligence.

i

where is ibeto

ibeto cement can reduce it's prices then it should take over

alj_harem:

where is ibeto

ibeto cement can reduce it's prices then it should take over

its easier to blame dangote

even though we know about 5 other large importers/manufacturers of cement in the country, people wont really ask why those ones are not selling at a lower price, funny thing obj or yaradua even re-issued them license to import but they must manufacture a certain percentage BUT most of them cant meet these manufacturing targets, some cant even import without incuring huge costs but hey the are pushing for importation only not minding the job creation aspect.

So you see it easier to blame the Mallam for their failures as if they also dont have local politicians in their pockets

Wapco, NNCC so many others are manufacturing in the country

FACE and Blink

Are those prices including transport,tax, duties etc etc

Please help us with some inside infos

Why price of cement is high – Ibeto
By MOSES AKAIGWE
Thursday, May 19, 2011

More Stories on This Section

An industrialist and Chairman of Ibeto Cement Nigeria Limited, Port Harcourt, Mr. Cletus Ibeto, has blamed the current high price of cement on an interplay of factors, including the price of diesel, the rising cost of trucking the product to different parts of the country by transporters and the after-effects of recent natural disasters in Japan.

The cement manufacturer disclosed that there is serious cement scarcity in the international market due to massive demand in Japan and by donor agencies, as reconstruction activities go on in the Asian country following the earthquake and tsunami of March 11. The situation, he said, has invariably impacted on the price of cement in Nigeria.

Ibeto, who was reacting to the ultimatum issued by the Federal Government to the Cement Manufacturers Association of Nigeria (CMAN), to reduce the per-bag price of the vital building material in 30 days, assured that the manufacturers would do whatever they could to obey the presidential directive.

He, however, pointed out that for the price of cement to come down, the critical factors contributing to the upward surge have to be addressed but said the manufacturers were glad that President Goodluck Jonathan who issued the deadline at a meeting with the association on Monday in Aso Rock, Abuja, identified the need to intervene with actions in order to make the product affordable to Nigerians.

“We will try as much as we can to see that the price of cement comes down but we also hope that as promised by Mr. President, government will go back to the drawing board to address the issues which contribute to the high cost of the product,” Ibeto told Daily Sun in an exclusive interview. He added that though the manufacturers had been craving for a reduction on duties charged on imported raw materials to only five per cent, from the present 30 percent, “import duty has little to do with the current high price of a bag of cement.”

According to him, huge sums are spent by the manufacturers on LPFO, a key cement manufacturing component and a special oil used in heating the klin during cement production, which contributes to pushing up the price of the end product.
But in a related development, David Iweta, a stakeholder in the cement industry with a cement bagging terminal facility in Sapele, has alleged that cement price was deliberately kept on the high side by the big cement manufacturers and importers whom he accused of running a cabal that made it impossible for new investors to go into the business.

“The cabal is deceiving the Federal Government,” he said, arguing that cement produced in the country was not supposed to cost more than N700 (against the present N1800 which he claimed was price at which the manufacturers sold to the distributors). Iweta, who was the guest of a television station in Lagos yesterday morning, advised President Jonathan to revalidate the revoked licences of some intending investors and approve the applications that had been pending for years, to have more cement injected into the market.

Sun Newspaper

The FG should do something about the cabals in the Diesel market

The instruction should have just been "Guys you have made enough to recoup campaign donations you made, go back to status quo ante" lol

How can you direct the crashing of price if you don't know how much is the landing cost of such commodity, is government going to reduce its own tax and duties charges on that product. What about the price of diesel and kerosene at N160 per liter?

You can't compare the cost of production of commodities in Nigeria with those of other countries. A glaring instance is the cost of power and fuels

FACE:

I once made arrangements to bring cement into the country, but had to back track due to exclusivity of licenses and the cost. I still have my contacts and I can land a bag of good portland cement to PH at a cost of N350. Add extra N50/ bag to take care of transport and logistics from PH + and another N100 forrelevant duties, 

I am confident that in a truely free market economy, that I will make a killing by selling at N800/bag unless already established titans are ready to go to a price war with me in which case, they would only win by dipping below N550. The level of protection without regulation offered to a few entities in Nigeria, has encouraged hyper inflation indused by over prising e.g cement and telecoms.

Totally deregulate the cement industry or apply stringent control and stiff penalties. This is why I think that govt should have rival  non-subsidised profit oriented bodies in key sectors to provide stiff challenges to companies with a tendency to monopolise the market.

so cement can be that cheap??

When the industry is not over-regulated by the government, then of course, it can be cheap.

It's obvious the government realize they created the monopoly, because it makes no sense for the government to tell a publicly traded company to lower the price of cement. wtf?

the truth will soon come out

FACE:

I once made arrangements to bring cement into the country, but had to back track due to exclusivity of licenses and the cost. I still have my contacts and I can land a bag of good portland cement to PH at a cost of N350. Add extra N50/ bag to take care of transport and logistics from PH + and another N100 forrelevant duties, 

I am confident that in a truely free market economy, that I will make a killing by selling at N800/bag unless already established titans are ready to go to a price war with me in which case, they would only win by dipping below N550. The level of protection without regulation offered to a few entities in Nigeria, has encouraged hyper inflation indused by over prising e.g cement and telecoms.

Totally deregulate the cement industry or apply stringent control and stiff penalties. This is why I think that govt should have rival  non-subsidised profit oriented bodies in key sectors to provide stiff challenges to companies with a tendency to monopolise the market.

[b]God bless you my brother. I worked in a construction company in the states for almost 4 years, and my company handled constructions in Dubai.
The price of a Portland cement within the US is $7 (#1050.00) depending on locations; if your buying bulk, you pay ($5), while the price goes for $12.99 in Dubai.
Coming back here, I was shocked when I tried to build my first house and discovered that cement was such a goldmine.
I tried to do exactly the same thing you had in mind, but in a different way: I mean, I was talking to friends in the states and letting them see the possibility of starting a cement factory in any lime rich part of Ogun State. Most of the Iyewa's lands are lime filled, and thats why Larfarge, Portland, and Dangote are all over there now.
I was shocked when I discovered the kind of hurdle I would go through before getting a licence. The bribing process alone is a totally discouraging as that enough is worth several millions. The dream died when I was told about the cost of getting the Cement Manufacturers Associate which is already bought and owned by some individual to endorse the cement itself. I was told they would kill the product the same way Burham was killed the South West. Anyways, I hope GEJ wont chicken out of this like he did against FIFA.[/b]

Nigerians shouldnt be deceived. Cabals everywhere. i forsaw this before the elections and knew that a PDP govt wont have the guts to break these monopoly. By all indices and even considering all there so called factors that has made cement be on the high side, there is still no justification for it to be sold at the price is presently going for. Its simply ridicoulous.
i see no light at the end of the tunnel in the nearest future. The president's order is just simply talk, nothing will be achieved at least till they recoup their investment in bringing this govt to power in the first instance.
Nigerians will simply have to continue to endure no doubt.

I hope I don't end up leaving this good for nothing country for good. How can a whole country be milked dry by a few. Well you people voted this government in. Enjoy it while it lasts.

Who's afraid of libralization?let the government grant import permits to importers and lets see how the competition affects the market price.

the revamping of the textile industry without addressing the production of cotton, and now asking a privately owned company to reduce the price of its comodity without addressing the cost of disel. which accoeding to the company is the root cause of the increment.