Aconomist:
I don't live in Nigeria, but it is still my country. And I can't invest until this cement issue is resolved.

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/

Johnrake69:


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.

Asour:


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

Also Business is 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.

Tobbit:



Smh. Where are the elites for goodness sakes or does education imply just speaking good Queens English.

Aconomist:
I don't care how he did it. All I know is that prices need to come down or the country needs to allow imports.

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.

Aconomist:


All of this information is in Dangote's financial report. He sells cement at double his cost of production in Nigeria (60% EBITDA margin) compared to a 22% EBITDA margin in other African countries.

angelfallz:
Bros, this is an excerpt from an article in the premium times newspaper, "Local production is useful but it should not come at all costs. So much was made of the expected outcomes for Nigeria once cement production was localised, but have the premises for those promises been proven right? Available data shows that Nigerian cement firms have the world’s highest profit margins, with Dangote Cement having margins of 45 per cent, when margins of major cement producers in other countries in India, Germany, Mexico, range from 1 to 14 per cent, with one other outlier being China’s Anhui Conch Cement that has a 21 per cent profit margin."

You can read the full article here: https://www.premiumtimesng.com/opinion/450128-of-dangote-and-near-absolute-monopolies-by-cheta-nwanze.html

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

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/

CSTRR:

N25 per tonne for limestone.

That is daylight robbery.

The man is robbing the Nigerian people badly.

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

extol1:

the man has render kogi useless. he is producing cement there and he has packed all the coal and still pack without doing anything to the community.

extol1:

the man has render kogi useless. he is producing cement there and he has packed all the coal and still pack without doing anything to the community.

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.

angelfallz:


The bolded, USA has crude oil.

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.

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.

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.

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!!

Xisnin:


The price of some drugs in the US is higher than in Canada despite many being manufactured inside the US.
If you have ever owned a business, you would understand that your comparison does not follow as many
things factor into the price. There are three ways to drive down the price, competitors, importing, or new laws.

Zambia manufactured cement will carry Zambia's price. Even some prices of goods vary within Nigeria.

If cement production cost is the lowest in the country, I expect BUA to have run Dangote out of business
by slashing the price by half and running Dangote out of business?
As far as I know, there is no law banning new companies from investing in cement production.

While I am not a fan of price-fixing as it creates more problems in the long run.
You could start a campaign for the price of cement to be fixed and any other products you consider too expensive.
Blackmail doesn't work against businesses as only profit matters.

Xisnin:


The price of some drugs in the US is higher than in Canada despite many being manufactured inside the US.
If you have ever owned a business, you would understand that your comparison does not follow as many
things factor into the price. There are three ways to drive down the price, competitors, importing, or new laws.

Zambia manufactured cement will carry Zambia's price. Even some prices of goods vary within Nigeria.

If cement production cost is the lowest in the country, I expect BUA to have run Dangote out of business
by slashing the price by half and running Dangote out of business?
As far as I know, there is no law banning new companies from investing in cement production.

While I am not a fan of price-fixing as it creates more problems in the long run.
You could start a campaign for the price of cement to be fixed and any other products you consider too expensive.
Blackmail doesn't work against businesses as only profit matters.

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/

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!!