CocoaOla:
i cant believe nigeria still have real human being with high IQ like you man you said it all nigerians are only good in corruptions
averages nigerians are educated illiterates forming street wise to cheat their fellows. it horrible here

Thank you boss. I'm honoured

You are going about this the wrong way in my opinion.
It is obvious you know what you are talking about. You have presented your argument and backed it up with facts and figures. Don't engage in throwing insults, because once you do, the message which you are trying to pass across would be forgotten and it becomes tit for tat with insults.

It is obvious that many Nigerians are not aware of the tax breaks and numerous tax exemptions and political backing Dangote has been enjoying over the years. But you're in a position to educate them. Don't allow yourself to be distracted with insults.

Aconomist:
I'm a trained economist in the U.S. I don't know what they teach you in Nigerian schools, but when you see someone selling cement at more than double its cost of production (60%) EBITDA margin that should tell you that the market is anti-competitive and broken.

If I was to pitch Dangote cement stock to most serious American investors, they would tell me that these numbers are the result of fraud or corruption. If Nigerians are defending something like this, you monkeys really have the zoo country you deserve. The only thing intelligent people should do is train themselves to stop caring and wash their hands of Nigeria.

Incognito403:

Your thinking has been obfuscated by hate and bitterness.

You're not making any sense. It's easy to see.

Olodo

Is the cement made in Zambia?
Besides, you can always buy the cheaper BUA.

Nigeria is a cashout land

Yeye country. fvck Any explanation to favour the high price here

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!!

and are his tribe people getting if cheaper?

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/

Truth is, he isn't.. you see in Nigeria, if you factor in the costs of the number of corrupt people he has to settle, so he can manufacture in peace, you will agree that the price of a bag of cement is quite cheap.

Or you think to bully people out of any market he pleases is free of charge?

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

https://www.nairaland.com/6486878/sell-cement-major-distributor-1900

Dangote sells to distributor at 1900 naira

sunday0707:
I don't believe Rabiu, let him reduce his own product price with a reasonable amount and let's see if people would be waiting on dangote. Though until the masses in the country wakes up to reality, government through people like him and dangote would continue to toy the citizenry

Quote from Rabiu:

"Even though this cement policy is a good one, it must be done in such a way that a lot of players must come in and participate. There is no point in making a policy that only one, two, or three people are able to benefit from that policy. That does not make sense. I am benefiting from this policy, but I know it is a bad policy. So, whilst the policy is good, the way it is being administered is not good. You can’t have a policy that restricts so many people from participating, at the end of the day, you are just creating a monopoly."

Rabiu urged the federal government to open up the cement industry for more competition.

According to him, the few players in the industry, “are making so much money in the industry and Nigerians are the ones paying for this. I am part of it, but I know it is wrong. Few people are benefiting and 200 million people are suffering. The business is doing well, we are making money, but how much money do you really need?"

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

Na their way oo

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/

Dangote is not selling cement at # 1,150 in Zambia, blame it of the PPP of Naira, Zambia economy is not characterised by high inflation as that of Nigeria.

All the paper work foisted on us is useless.Dangote cement price is disservice.to the development.of.Niigeria.Cement
shouldd not cost more than N2000.or even less!

UAE is one of the most expensive place to live but despite that, 50kg of cement is between 12 to 13 Aed around 1500 Naira, UAE Don't have raw materials for cement they are importing from abroad but yet its cheaper than Nigeria... What exactly did dangote said We did to him

Sir, just for info

U can't create a price war with the market leader.
That is suicide.( Every good economists knows this).

Every challenger knows this.

I'm not into arguments though

Acidosis:


You haven't said any meaningful thing bro asides the disputable fact that you're a trained economist in the U.S. Well, I'm not a trained economist but I know how to check appropriate places for information instead of making up figures to attack an individual over a perceived industry problem - same individual with the best market price o. Lol.

I have attached the profit/loss profile for the year 2019. So, please check and enlighten yourself. Look at the gross profit, revenue, and profit t attributable to the owners of the company.

Let's even assume your 60% data is correct, how do you explain the fact that his price has consistently remained the best in Nigeria? How come the "wicked" Dangote sells cheaper Cement than "Saint Ibeto" and "Saint Lafarge"? Why can't they crash the price and, consequently, create a price war like many companies in your country of residence do?

LMS1:
One Tribe Like That Will Hire Pickup Trucks And Troop To Zambia Just To Go And Buy The Cement At Cheaper Price And Resell Them Here In Nigeria For Profits.
Igbo Kwenu!!

not economically wise to do so

The only reasonable explanation is that dangote is using Nigerian market to subsidize other markets.

Dangote cement is dirt cheap all over Africa.
The only place where it is costly is in Nigeria.

Biodun556:



https://www.nairaland.com/6486878/sell-cement-major-distributor-1900

Dangote sells to distributor at 1900 naira

That is a dirty lie, you dumb Nigerian monkey. HIS EBITDA MARGIN IS 60% -- THIS MEANS HE IS SELLING FOR DOUBLE HIS COST OF PRODUCTION.


READ. IT. HERE. IN. THE. FINANCIAL. STATEMENT.

How is the ease of production in Zambia like.


Do they have power supply?

Are the workers honest above 70 %.

How are their road network like.

Traffic

Ease of truck repair

Ekelebe and alaye disturbance

Egunje payment to regular and so called traditional officials

Etc


In Nigeria, simple things are complex.

Business without generator in Nigeria is a not serious business; then the fuel.


Some businesses even in America is cheaper to start and maintain than in Nigeria.


Let us be assessing well.

I don't have any concrete opinion on Dangote.

But I know that location of business varies depending on circumstances including finance.


When I say we are one if not the most disorganized country, I no dey talk am with joy.

Ehe this is how it should be!! Acidosis is backing his argument with data and figures, you are countering with your data and figures, no time for insults or emotions.

Aconomist:
Well, I respect you for at least trying to argue with me based on data. I have attached Dangote's 2020 earnings presentation and screenshotted page 8. Here is the link: https://www.dangotecement.com/wp-content/uploads/reports/2020/FY2020/DangoteCement_FY2020_ResultsPresentation.pdf

As you can see circled in red, Dangote's EBITDA margin in Nigeria is 58% -59%, which I rounded to 60%. This means he is selling cement at more than double its cost of production. If you are not aware, "EBITDA" refers to Earnings Before Interest Taxes, Amortization or Depreciation -- similar to cash operating profits. Compare this to Dangote's "Pan African" segment, where the EBITDA margin is only 22%.

His margin is lower in other African countries because they have high levels of competition in the market and don't allow Dangote to price gouge like he is doing in Nigeria. The chart you listed above is combining Dangote's Nigerian operations with his Pan African operations.

yesloaded:


To make it simple, let FG unban importation of cement

It's that simple

USA doesn't have crude oil whereas we do here in Nigeria

Buy Nigeria to enrich dangote and their private pocket, even if I buy from somewhere, with the landing cost it won't cost more that 2000 per 50kg ... Useless country

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.

Sir, the reasons you listed above further convinced me that Dangote and other cement manufacturers are treacheously dealing with the Nigerian consumer.
His company will be confiscated by a hostile government someday with the way he is cheating his fellow Nigerians.
Dangote is funding these Zambian arm of his company with money he is making or milking from Nigerians and same applies to even Lafarge that just divested from its SA arm.
This is preposterous and Nigerians should go to court to compel investigation into this cement price rip off like the Zambian government has done. Every one indicted should be jailed. The investigation should be headed by a retired judge in the mould of Late Justice Kayode Eso.
God bless Nigeria

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.

cement should be more expensive in Zambia than in nigeria

vioment:
How is the ease of production in Zambia like.


Do they have power supply?

Are the workers honest above 70 %.

How are their road network like.

Traffic

Ease of truck repair

Ekelebe and alaye disturbance

Egunje payment to regular and so called traditional officials

Etc


In Nigeria, simple things are complex.

Business without generator in Nigeria is a not serious business; then the fuel.


Some businesses even in America is cheaper to start and maintain than in Nigeria.


Let us be assessing well.

I don't have any concrete opinion on Dangote.

But I know that location of business varies depending on circumstances including finance.


When I say we are one if not the most disorganized country, I no dey talk am with joy.

You don't even understand the cement industry. Dangote is not using generators, he has his own powerplants and he mines his own coal to fuel them. This is why his cost of production is among the lowest in the world.

DANGOTE IS ONE OF THE GREATEST ENEMY OF NIGERIA. THIS MAN NEEDTO BE ELIMINATED FROM THIS COUNTRY IF NIGERIA MUST MOVE AHEAD.

How come there’s no other good cement manufacturer in this Nigeria? Like with all the billionaires in Nigeria they can’t produce a competitive cement market... na wa ok naija is bursted.

If Dangote wasn’t among the richest men in the world all these trivial criticism won’t exist . Dangote isn’t Nigerias Problem lol . I really don’t know where the hate is coming from I mean . Such a Frivolous Criticism.
I was also naive but not to this level then when I discovered that same Airtel that sells 1.5GB for #1500 in Nigeria ,Sells 28GB with extra benefits for #1500 in India . And then I had to do some deep finding , My Eyes Opened .
Lol No Sentiments

vioment:
How is the ease of production in Zambia like.


Do they have power supply?

Are the workers honest above 70 %.

How are their road network like.

Traffic

Ease of truck repair

Ekelebe and alaye disturbance

Egunje payment to regular and so called traditional officials

Etc


In Nigeria, simple things are complex.

Business without generator in Nigeria is a not serious business; then the fuel.


Some businesses even in America is cheaper to start and maintain than in Nigeria.


Let us be assessing well.

I don't have any concrete opinion on Dangote.

But I know that location of business varies depending on circumstances including finance.


When I say we are one if not the most disorganized country, I no dey talk am with joy.

Stop posting nonsense.
Dangote is not a start up company that needs to settle everybody.

He enjoys govt support to the fullest.

Any omo-onile or traditional ruler that tries to frustrate him would face the army in minute.

Stop making unintelligent argument.

Infact, he has it better in Nigeria than in other parts of Africa.

Power is not a valid excuse.
His plants are ran by gas. Gas is cheap in Nigeria especially at dangote's level of connection and purchase.

georgeakins:


Is Dangote cement the only cement in the market?

Why do you people from the East like running someone down once he is not from your ethnic group?

lol someone produces cement and sells it at 3000 in our country, then exports the same cement to Zambia and sells it at 1500 and you see no problem in this.

very interesting points you have made.

Tobbit:



Hahahahahahahahaha. Yes. Cause when one can't speak about one's activities with high level of intelligence, it means there's rottenness deep within. That's why no matter what he does Arsenal won't sell the club to him so he can white wash his image


He's stripping Nigerians to the bones but just few know it.


Cement should not be more than 2500/3500 Naira per bag.


When Dangote mentioned interest into Tomatoes, the market got destabilised, same Tomato that had revolved around 40/60 Naira for decades skyrocketed to 150/200 Naira


Now let me go deeper into the underlying econometrics of this.


If Tomato is farmed, processed, cost of maritime, haulage to Nigeria and the price steadies around 40/60 Naira for a decade, Home based productivity that benefits the masses should go below the import/retail price for the same size and not Quadriple it.


Which makes me beg our local outfits when they write stories why don't they get experts to run intelligent analysis on issues like this?


How should Tomato farmed in Italy/China cost five times lesser the proposed Nigerian price. And we want to maintain a strict almost closed market structure around it



The same thing is being done to Milk as we speak and will begin to roll out over the next few years


Local productivity isn't just about creating jobs if it's not going to result into subsidised reduction or close in prices to Imported goods, then should we bother about home based productivity atall?



The insult as a macroecononist that I am is Many average Nigerians will say fluctuations, light, power this that and that. Forgetting these guys mostly use casualties labours, generate huge finances from the stock market which in itself ought to be a stabiliser against sudden spikes in production chain


So I beg to wonder where are the elites



If I'm wrong, why is Milo still the same price inspite of different economic realities in the past 5 to 10 years. Kiln maintained the same price for over a decade. Nut No, Dangote must spike prices 50 times every 2 years, yet Nigerians are the ones financing it realistically and getting terrible Dividends that doesn't reflect profits his overall financial standings continue to reflect



I don't think Nigerians have professionals in the media. I doubt.

Aconomist:
Dangote has a EBITDA (this calculates profits before tax, interest, depreciation, etc.) margin of 60%,. He says it in his annual report. If he has an EBITDA margin of 60% and he is selling for 3,000 naira, his cost of production is only 1200 naira. Also, notice how much lower the EBITDA margin is in "Pan Africa" which is his operations outside Nigeria.

This just just open price gouging. And you monkeys are too dumb to see it.

Link: https://www.dangotecement.com/wp-content/uploads/reports/2020/FY2020/DangoteCement_FY2020_ResultsStatement.pdf go to page 4.

You're truly dumb. Cement manufacturing companies can make and sell cement at #800 profitably. Got this info from a senior accountant in one of the companies.

That aside, compare Dangote's returns to the world industry average of 17%.

Someone that pays just #25 per ton on limestone. Nigerians shouldn't be buying cement for more than 1k a bag.

If you're supporting this then you're not human.

Nigeria according to UN report currently has more than 17 million units of housing deficit.

With this practice how will the condition improve?

We just have foolish educated Nigerians like yourself that lacks morals.

Aconomist:
It is a oligopoly (limited competition) not a monopoly. But Oligopoly is just as bad as monopoly because the few producers can coordinate with each other to keep prices high. Also note that Dangote's market share in the southern part of the country is pure monopoly. BUA Group sells mostly in the North and LaFarge only sells to civil engineering companies -- they don't usually do residential.

Lafarge doesn't only sell to civil engineering companies. That is not true.

Also Business is a hard adventure.

Most 2 Major local producers started out as importers. He successfully moved to production.
Others faltered. You may say they didn't, right? That Dangote used government support to eliminate them.

The question would be : If he is ALL so powerful, how come he failed at Tiger spices, Noodles/Flour & Beverages(juices).

Also how did BUA survive him? To remain in the industry?
Business is hard. I wish it wasn't. Monopolist would always seek to dominate. Capitalism is ruthless.

God help us.