jaszplus12:

A particular tribe are not happy because it's not their person that's enjoying the monopoly...if it were... hmmnmm they would have said how no one else can be smarter than them!! Would not have referred to it as wickedness but as business acumen!!

Cartel, oligarchy or monopoly is not business. There is no competition

Aconomist:
Dangote is selling cement for 55 Kwatcha (1150 naira) in Zambia. But in Nigeria, the same cement is going for 3,000 to 5,000 naira. Dangote is the biggest problem in Nigeria. I have never seen such a wicked excuse for a human being in my live. EndSARS is over. It's time to start END DANGOTE.

https://zambiareports.com/2021/03/31/78130/

And as expected the National Assembly has turned a blind eye to this. What a country.

Don't know where you got your info from but I just googled prices of cement in Zambia and it's between 135 and 140 kwacha as against 55 Kwacha posted on this forum.

PLS let's avoid misinformation, it's not good for our development at all.

jaszplus12:

Thanks for the insult. Understand that you're a product your own mind. For every negative word you utter it tells how deeply depraved you are!

he did not insult you, he only described who you are in clear terms.

jaszplus12:

A particular tribe are not happy because it's not their person that's enjoying the monopoly...if it were... hmmnmm they would have said how no one else can be smarter than them!! Would not have referred to it as wickedness but as business acumen!!

All Nigerians are feeling the heat of his wickedness.

Are you people ashamed of yourselves?
Why are you defending evil?

od501:


He bought and maintains those things, not like he hired it or something. He is solely responsible for its maintenance. If it had been government owned e g. The power plant, the money would have been used for other things. And for the cost of production, how do you know this?

It's in his damn financial statements. Dangote's factories are made with the latest technology compared to older companies where they are still using 20 - 40 year old factories and outdated technology. Dangote is also significantly more vertically integrated than other cement companies.

By owning his own powerplants, Dangote gets electricity at its cost of production. In fact, he gets it cheaper than cost of productions because of the supply-chain synergies between cement production and electricity generation, which both require coal, etc.

ayterajah:
Am not supporting dangote but my point of view is that what's the economy state of Zambia compare to Nigeria and don't forget that dangote it's not alone ... he have many govt officials under him

What economy state are you talking about?
Most of the cement ingredients used for cement is in Nigeria, so why the increase.
Those government officials under him are criminals which should be investigated and prosecuted.
Open the link and read the report in Zambia and it open your eyes.
He's doing anyhow in Nigeria but can't do such nonsense in Zambia because the criminality in Nigeria is high.

Aconomist:
I have answered these questions numerous times. Dangote is selling his cement at roughly double its cost of production in Nigeria (60% EBITDA Margin) compared to a 22% EBITDA margin in other African countries. Transportation, etc. is included in this. Here is the 2020 financial statement.

How about my other question, is Dangote the only Cement manufacturer/importer? Why aren’t others selling at lower prices, or is it Dangote that fixes the price of cement?

Dangote Nigeria isn’t a charity, I could say he’s one of the largest employer of labor in Nigeria, how do you think he sustains that?

Aconomist:
The size of the economy doesn't matter. Cement price is selling for between 1,500 and 1,900 in South Africa, which is a large economy like Nigeria.

Don't mind that person, criminals are just too much in Nigeria. When I read the report I just knew they're set of thieves that don't what Nigeria to grow.

Acidosis:
You guys are always on Dangote's matter yet his cement is not the only available brand in the market. Did anybody force you to buy Dangote cement?

...always complaining about how Dangote killed competition. Tbh, this is one of the craziest things I have seen on the internet. If Dangote wants to kill Ibeto, Unicem, Lafarge and others, all he needs to do is crash the price of cement to N1000 per bag. He doesn't need to bribe anybody. This is simple economics. Make una dey use una head on this forum.

Dangote is wicked bla bla, yet his noodles, spaghetti and salt are some of the cheapest brands in the market.

Look at the images below and search for the brand with the best and cheapest offer.

As per the Zambian analogy from the OP, it's really not worth a response from me. I would leave that for primary school students to debate.

Dangote is a price maker monopolist, he builds his business on predatory pricing, first he'll crash the price of his products below such that his competition would fall out of business, and then he sharply increases the price again. Predatory pricing in illegal un business.

Not the norm sir

Litmus:


Yes you can.




On a Thursday morning in April 1990, in the suburb of Stechford in Birmingham, a strange grocery chain started trading in the UK. It only stocked 600 basic items – fewer than you might find in your local corner shop today – all at very low prices. For many products, including butter, tea and ketchup, only a single, usually unfamiliar brand was offered. To shoppers accustomed to the abundance of Tesco and Sainsbury’s, which dominated the British grocery sector with thousands of products and brands, delicatessens, vast fridges and aisles piled high with fresh fruit and vegetables, the range would have seemed dismal.

The managers of this new shop, which was called Aldi, had not bothered to place a single advert announcing its arrival – not even an “Opening soon” sign outside the store. Strip lights illuminated the 185 sq metre store, and from the ceiling hung banners listing prices for the goods stacked on wooden pallets or displayed in torn-open cardboard boxes on metal shelves. A £1 deposit allowed you to borrow a trolley but there were no baskets. The checkout assistants, who had been trained to memorise the price of every item in the store, were so fast that shoppers experienced what some would come to call “Aldi panic” – the fear that you cannot pack your goods quickly enough. The store accepted cash but not cheques or cards. Customers seeking itemised receipts left disappointed.

Information on Aldi’s owners was as limited as the decor. Most news reports noted merely that the company belonged to a frugal and spectacularly rich pair of German brothers, Karl and Theo Albrecht, who had both fought in the second world war and whose desire for privacy had reached extremes after Theo’s high-profile kidnapping for ransom in 1970s. The Albrechts had an extremely popular chain of bleak discount stories in Germany: the brothers had divided the country into separate fiefs, with each controlling the market in one half of the territory.

But most people were confident they would fail in Britain, where there was a discernible snobbery about discount stores. When a reporter from the Times visited an Aldi store in Birmingham the following year, he thought it represented the “anonymous, slightly alarming face of 1990s grocery shopping”, without any pretence of sophistication. “One looks in vain for avocados or kiwi fruit.”

The British supermarket giants, whose 7% profit margins were the world’s highest, were even more dismissive. Sainsbury’s remarked on the absence of service, which was important to British customers. “We welcome the advent of Aldi and others to come,” said Tesco managing director David Malpas. “We can live quite happily in our part of the market and they can live in theirs.”

For a long time it looked like he was correct. In 1999, when Walmart bought Asda, the UK’s third biggest grocery chain, the Financial Times noted that Aldi had made “little impact in Britain” because customers were not as price-sensitive as Americans or continental Europeans. German shoppers, notoriously, took this to extremes: one of the country’s biggest electronics retailers, Saturn, even adopted “Thriftiness is sexy” as a marketing slogan. By 2009 – after nearly two decades – Aldi’s market share was just 2%, similar to that of Lidl, its German rival and imitator, which had launched in Britain soon after Aldi.

Read:

https://www.theguardian.com/business/2019/mar/05/long-read-aldi-discount-supermarket-changed-britain-shopping

Wow. But Zambia is full of snakes, arguably worse than the corruption in Nigeria.

Aconomist:
When people ask me why I don't invest in Nigeria, remember this thread and responses like this. Nigerians are addicted to stagnation and justify their own demise -- only a fool would put his hard earned capital into a nation of monkeys like this.

Cement prices around the world range from $3 to $6 while Dangote is selling for the equivalent of $11 for a profit margin of 60% in Nigeria compared to an industry average profit margin of 5% to 12%. He is able to charge these high prices because of low competition -- he kicked out competitors by hoarding limestone resources and convincing the federal government to ban imports.

According to Rabiu of BUA Group, Nigeria's real cost of cement production is the lowest in the world. The high prices are because of price gouging and monopolistic behavior from Dangote.

If place your point of argument on these facts . What about elephant clement . Why have they not reduce their prices tremediously so as to kick DC out of d market . I think the cost of doing business in nigeria is the issue .

PAWG:



How about my other question, is Dangote the only Cement manufacturer/importer? Why aren’t others selling at lower prices, or is it Dangote that fixes the price of cement?

They don't sell at lower prices because the market is in scarcity. According to Rabiu, they can't produce enough to meet demand. Rabiu is asking the government to liberalize the industry to allow more companies to enter the market.

https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

If you want to know how Dangote created this scarcity, read here:

https://www.thenigerianvoice.com/movie/54550/real-reasons-cement-price-is-high-iweta.html

Aconomist:
When people ask me why I don't invest in Nigeria, remember this thread and responses like this. Nigerians are addicted to stagnation and justify their own demise -- only a fool would put his hard earned capital into a nation of monkeys like this.

Cement prices around the world range from $3 to $6 while Dangote is selling for the equivalent of $11 for a profit margin of 60% in Nigeria compared to an industry average profit margin of 5% to 12%. He is able to charge these high prices because of low competition -- he kicked out competitors by hoarding limestone resources and convincing the federal government to ban imports.

According to Rabiu of BUA Group, Nigeria's real cost of cement production is the lowest in the world. The high prices are because of price gouging and monopolistic behavior from Dangote.

You nailed it

Staphylococcus:



You are not brilliant OP

Chevron and Shell selling PMS over $2.50/Liter in the USA, Why are they selling cheaper in Nigeria

You see that comparison is baseless

1. Chevron and Shell do not sell refined products.

2.Fuel is cheaper in Nigeria due to government subsidy.

itubaba001:

If place your point of argument on these facts . What about elephant clement . Why have they not reduce their prices tremediously so as to kick DC out of d market . I think the cost of doing business in nigeria is the issue .

The problem in Nigeria is scarcity. All of the companies are struggling to meet market demand, hence the high prices.

The solution is to allow imports or allow more companies to join the market.

Aconomist:
They don't sell at lower prices because the market is in scarcity. According to Rabiu, they can't produce enough to meet demand. Rabiu is asking the government to liberalize the industry to allow more companies to enter the market.

https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

If you want to know how Dangote created this scarcity, read here:

https://www.thenigerianvoice.com/movie/54550/real-reasons-cement-price-is-high-iweta.html

Why are the salaries of Dangote Nigeria higher than those of Zambia. Have you guys considered the cost of transportation? Even my state is bigger than Zambia.

Stop the demonizing campaign. How about Lafarge, are they saints?

Advocate500:
the fulanis are they buying cement cheaper than what the tribe you mentioned are buying it's? And some one will argue that common sense is common.

If the Fulani are not buying for less then why are you whimpering?

Lafrresh:
Whatever you want say is your problem but if you are a businessman your main goal is to increase your profit �. It's now left for the government and consumers to allow you sell at that price.
If people don't buy no one would tell him before he reduces his price na , it's because he has a high number of consumers and the government didn't set a maximum price for him.

Car sellers do the same , most of the cars they buy are salvaged. They repair it and sell it at astronomical prices .
Ok lemme ask you this question , if you were Dangote would you reduce your price or increase it to make profit
You'll probably say increase so I don't see why you are insulting him

Look at yourself? Are you happy defending criminals and supporting people making money at all costs to the detriment of their countrymen?

You're even citing an example of frauds selling off salvaged cars as good Tokunbo. A fraudulent practice that is now making people to ask for VIN before buying vehicles.

samwash:
Let's face the reality, many factors comes into play in the production industry.
lets compare Zambia to Nigria in terms of
Economic growth
Government policies & tax
Dollar exchange rate
Source of raw materials
Market competivenes
Manpower & Technology
Security, Power etc.
A company that has its factory in two different country ( lets say Nigeria & Benin Republic) will not sell a particular product the same price in both country even if they are neighbors.
Note; the value of the country local currency plays a major role that's were inflation comes into play.

OK give us the figures let us compare?
Are you aware Nigeria, is among the countries with the least tax to gdp ratio.
Be reasonable abeg.

PAWG:



How about my other question, is Dangote the only Cement manufacturer/importer? Why aren’t others selling at lower prices, or is it Dangote that fixes the price of cement?

Dangote Nigeria isn’t a charity, I could say he’s one of the largest employer of labor in Nigeria, how do you think he sustains that?

For every 1 job Dangote creates in his cement factory, he destroys 10,000 jobs in the construction industry because of his unreasonable prices. Nigeria's unemployment rate is high mainly because of Dangote. We would actually have more jobs if we allowed imports.

Construction is one of the largest employers in the world. Dangote has destroyed millions of jobs with his cement oligopoly.

Oil companies will plunder your resources, pollute your lands and water ways, you applaud them
Chinese, Indians and Lebabeae will come, will enslave y'all and exploit you u a no get mouth to talk na businessman who suffers the same things you suffer when producing hos stuff una want attack. SMH

Aconomist:
I have answered these questions numerous times. Dangote is selling his cement at roughly double its cost of production in Nigeria (60% EBITDA Margin) compared to a 22% EBITDA margin in other African countries. Transportation, etc. is included in this. Here is the 2020 financial statement.

Guy really this:

“Our ex-factory price is still about N2,700 per bag, but cement is selling between N3,500 and N3,800. I had to stop my people from collecting money last week, simply because we are collecting money much more than what we can produce,” he said...


That’s greed from retailers, is it Dangote that caused it?

Nigerians are wicked to themselves that’s why things are expensive. Imagine a retailer wanting to make more than the manufacturer. It happens everywhere, enter the market and try to buy a pair of shoes or an Aba made suit, the asking price will shock you.


We’re too greedy

PAWG:



Why are the salaries of Dangote Nigeria higher than those of Zambia. Have you guys considered the cost of transportation? Even my state is bigger than Zambia.

Stop the demonizing campaign. How about Lafarge, are they saints?

You don't understand basic economics. Economies of scale -- look it up. The larger a market is, the cheaper it is to produce. This is why large countries like China lead in manufacturing. SCALE.

Aconomist:
For every 1 job Dangote creates in his cement factory, he destroys 10,000 jobs in the construction industry because of his unreasonable prices. Nigeria's unemployment rate is high mainly because of Dangote. We would actually have more jobs if we allowed imports.

Can I ask you an honest question? Where are you from?

PAWG:



Guy really this:

“Our ex-factory price is still about N2,700 per bag, but cement is selling between N3,500 and N3,800. I had to stop my people from collecting money last week, simply because we are collecting money much more than what we can produce,” he said...


That’s greed from retailers, is it Dangote that caused it?

Nigerians are wicked to themselves that’s why things are expensive. Imagine a retailer wanting to make more than the manufacturer. It happens everywhere, enter the market and try to buy a pair of shoes or an Aba made suit, the asking price will shock you.


We’re too greedy

It's not greed. THERE IS SCARCITY IN THE MARKET. The solution is to liberalize the industry OR allow imports. Why are Nigerians so damn stupid?

samwash:
Let's face the reality, many factors comes into play in the production industry.
lets compare Zambia to Nigria in terms of
Economic growth
Government policies & tax
Dollar exchange rate
Source of raw materials
Market competivenes
Manpower & Technology
Security, Power etc.
A company that has its factory in two different country ( lets say Nigeria & Benin Republic) will not sell a particular product the same price in both country even if they are neighbors.
Note; the value of the country local currency plays a major role that's were inflation comes into play.

I can only agree with the power/logistics factors but others are not excuse for him to inflate the price of cement in Nigeria. Limestone is in abundance, our tax is one of the lowest in the world, and others. Zambia currency is one of the worst in the world yet he decided to sell very cheap to kill competition and then start inflating the price of the commodity.

Let me tell you, dangote business model is to first crash the price of commodity and make business unbearable for competitors, buy them off and start his monopolistic wickedness. If not for the fact that dufil foods ( indomie) were innovative, he almost destroy the pasta business for them.

If you want to know more about his wickedness, ask his employees.

PAWG:



Can I ask you an honest question? Where are you from?

The U.S. But I'm also a Nigerian citizen.