omonnakoda:
They are not dong anyone a favour by building in Nigeria.They are doing business at incredible margins and if they cannot produce at internationally competitive prices we should give up on cement and focus on areas where we can compete and import instead.However there is no reason why we cannot compete. The rational for producing in Nigeria is that we can compete on price internationally and if that is not the case we should quit. You cannot say what you are saying without data.What are the profit margins of Nigerian manufacturers and how does that compare internationally??

EbolaParasite:


Read my last comment. I actually do have data so this is not hearsay. Are you familiar with cement manufacturing? Because if you are not, then I will be wasting my time. I have data from Cemex, Lehigh, St. Mary's and Titan cement in America, to name a few. I have friends that worked for a company in Pennsylvania that built Obajana for Dangote. I do have numbers.

ITbomb:

Understand that a brand new Peugeot car went for N10k at that time and make your conclusion of "JUST N500k"

iykebesbt1:
the way these people be spending money and making real investment will left u wondering whether na escort u escort person come dis world

kingslly:
So what happened to investing in Nigeria?

omonnakoda:
I would not want such a high flier as you are to waste your precious time so let us leave it at that

EbolaParasite:


No need to tease me. No one is bragging here. It's an anonymous forum. Information is all over the web if you seek it. But anyway, good chat.

vimi:
Dangote, a man whose life was changed with just 500k by his uncle

grandstar:


5000 then could buy you a brand new car

Elslim:
land no de naija for such project ni

400billionman:


Nigeria is already sufficient in cement production. That is why the product does not command profit anymore for distributors..

Since 2012.

Elslim:
land no de naija for such project ni

omonnakoda:
No one is teasing anyone . You just come across as arrogant,that may not be your intention but that is the effect you create. You have not said anything I do not know but to tell me you would be wasting your time if blablabla is very patronizing and if you do not get it then the problem is a lot worse . I already gave you data from proshare.[b] Dangote cement is the most profitable cement company in the world [/b]and the Nigerian government should squeeze them a little by refusing to buy cement from it above the international rate, that will not drive it out of business. It may even help it because that would be an opportunity to boost the housing and construction sector and he will have a greater turnover with lower margins. If he cannot sell at international rates(at least) then we must question the viability of his business model

no1fan:


Such factories are built close to the source of limestone. He has one already in Nigeria.

Elslim:
land no de naija for such project ni

EbolaParasite:


@Bolded, - not correct.
More profitable than Lafarge, CEMEX, Holcim, Loma Negra?
The reason I said I would be wasting my time if you didn't know about cement manufacture is because I know the industry well. It has nothing to do with arrogance. It's just that if you don't know the industry well, then we would be arguing forever. I can go into the details of how the raw materials move from the conveyor bits to the raw grinding mill, to incineration in the Kiln and/or calciner to produce Clinker which is mixed and ground with gypsum to give you cement. I know the industry well hence my statement. Not trying to be arrogant.

all4naija:
Another rich Nigerians should go into real estate with quality buildings by involving developed nation best architects and construction standard. The cements from Dangote is useless if not used to develop Africa for good. When I mean good I mean standard housing infrastructure like the ones found in almighty South Africa, Ghana, Asia, etc.

MPSA:


I support your statement 100%

What are the teeth emoticons for?! Jeez! Are you serious by replacing Townships and smelling Ghana with almighty USA and Europe respectively?

omonnakoda:
There is no logic to the proposition i.e non-profitability as a consequence of self sufficiency. Distribution by definition is a value addition process. The problem we have is our distributors are too many,too fragmented and do not add enough value.Sadly our distribution systems are inefficient.Cement should be a low margin product where profitability comes from turnover volumes rather than margin.
Not just cement but distribution in general,Nigeria is crying out for a mega distributor with deep pockets.

Also in building materials what we need is a Mega company making blocks that ccan go to Dangote and buy 1 million bags of cement daily and make blocks of a standard quality .Such a player will remove some of the distribution burden from Dangote and lead to lower prices

400billionman:


I am talking in practice. If before 2012 when Nigeria was not cement sufficient, the scarcity yielded higher returns for dealers, and after 2012 when supply exceeded demand, dealers groan under little or nor margin, it can be inferred that self sufficiency led to the unprofitability.

I am not saying that you are wrong but looking closely at the distribution chain, no other factor changed between 2011 and 2013, which means all other factors remained constant save for excessive production volume. Resultant effect being unprofitability.

Sir, are you encouraging monopoly in the distribution chain by the bolded ? Is that how to grow SMEs ? There are many deep pockets in the building sector. By this time last year, cement was selling at a factory price of N1,500, now it is selling at N1,820 because one man is fixing and controlling the price. The is rainy season and by right, cement should be at its lowest price at this time of the year. Though I smell a policy that will soon fix cement price like fuel. We are being fleeced. Will you encourage a situation where a manufacturer pockets N1,820 and his distributor goes home with N30 ?

all4naija:
Another rich Nigerians should go into real estate with quality buildings by involving developed nation best architects and construction standard. The cements from Dangote are useless if not used to develop Africa for good. When I mean good I mean standard housing infrastructure like the ones found in almighty USA, Europe, Asia, etc.

decentsoft:
is good to invest?is good to invest?is good to invest?

all4naija:
Another rich Nigerians should go into real estate with quality buildings by involving developed nation best architects and construction standard. The cements from Dangote are useless if not used to develop Africa for good. When I mean good I mean standard housing infrastructure like the ones found in almighty USA, Europe, Asia, etc.