Dangote reveals actual price of cement sold to dealers


The management of Dangote Cement Plc has clarified that the price of a bag of cement from its factories and plants across Nigeria (as at 12th April, 2021) is N2,450 in Obajana and Gboko, and N2,510 in Ibese inclusive of VAT.

The clarification was made in view of recent insinuations that the company sells cement in Nigeria at significantly higher prices relative to other countries, particularly Ghana and Zambia.

Dangote’s Group Executive Director, Strategy, Portfolio Development & Capital Projects, Devakumar Edwin revealed that, while a bag of Cement sells for an equivalent of $5.1, including VAT in Nigeria, it sells for $7.2 in Ghana and $5.95 in Zambia ex-factory, inclusive of all taxes.

He said that though the company has direct control over its ex-factory prices, it cannot control the ultimate price of cement when it gets to the market. He advised that it is important to distinguish Dangote’s ex-factory prices from prices at which retailers sell cement in the market.

He, therefore, frowned at intentional misinformation or demarketing, allegedly sponsored by some individuals, that Dangote sells its cement at higher prices in Nigeria relative to other African countries at the expense of Nigerians. He described the allegation as false, misleading, and unfounded, while giving the media persons present at the press conference copies of invoices from Nigeria and some other African countries (Cameroun, Ghana, Sierra Leone, Zambia), and urging them to conduct independent investigations on the price of cement across the West African coast.

Edwin further explained that while Dangote cement has 60% share of the market, other companies have the remaining 40%. DCP has no control over neither the prices charged by other cement manufacturers nor the prices charged by retailers in the markets.

He further explained that “Demand for cement has risen globally as a fallout of the COVID crisis. Nigeria is no exception as a combination of monetary policy changes and low returns from the capital market has resulted in a significant increase in construction activity. To ensure that we meet local demand, we had to suspend exports from our recently commissioned export terminals, thereby foregoing dollar earnings. We also had to reactivate our 4.5m ton capacity Gboko Plant which was closed 4 years ago and run it at a higher cost all in a bid to guarantee that we meet demand and keep the price of Cement within control in the country.”

He said: “Over the past 15 months, our production costs have gone up significantly. About 50% of our costs are linked to USD so the cost of critical components like: gas, gypsum, bags, and spare parts; has increased significantly due to devaluation of the Naira and VAT increase. Despite this, DCP has not increased ex-factory prices since December 2019 till date while prices of most other building materials have gone up significantly. We have only adjusted our transport rates to account for higher costs of diesel, spare parts, tyres, and truck replacement. Still, we charge our customers only N300 – 350 per bag for deliveries within a 1,200km radius. We have been responsible enough not to even attempt to cash in on the recent rise in demand to increase prices so far,” he said.

https://dailynigerian.com/dangote-reveals-actual-price/

Ok o...so d blame is on the wholesale retailers....I see..!

Once anything go up in Nigeria

Who is to blame now Dagote, middle men or retailers

I am happy he is feeling the heat enough to come and explain himself. Nigerian consumer still have a lot to learn about their power and rights. Monopoly is anti consumer for real

Alejoas:



I am happy he is feeling the heat enough to come and explain himself. Nigerian consumer still have a lot to learn about their power and rights. Monopoly is anti consumer for real

Seriously, this man is milking Nigerians dry. Price of cement at the Market is N3300 to N3500.
That's criminal difference of N1000 that's too much to bear

BUHARI is not the only PROMBLEM in this country, WE are doing ourselves too. HABA!!!

platorepublic:


Seriously, this man is milking Nigerians dry. Price of cement at the Market is N3300 to N3500.
That's criminal difference of N1000 that's too much to bear

He is busy fighting local competitors in Ghana Zambia Sierra Leone with Price

Where as using Fulani government in Nigeria to makeup the difference by forcing us to buy cement #4000 to #3800 now he is trying to make Zombie’ believe USD ,wholesalers and retailers are the problem

Oga Dangote come of it , we are wiser than this crap you put out there just to hide your shame

majamajic:
Once anything go up in Nigeria

The FG is to blame.

They have no mechanism to monitor and curtail the excesses of middlemen in Nigeria.

Ok

Is it 2500 that he sell at other African countries.. Retailers come worst. I won't blame them,because government is really the problem here. Price of fuel,and everything other thing contributed.. Niaja no get leaders

I am happy he is feeling the heat enough to come and explain himself. Nigerian consumer still have a lot to learn about their power and rights. Monopoly is anti consumer for real

Why imported goods alway cheaper than local ones in naija

Brunosamel:
Who is to blame now Dagote, middle men or retailers

What's the actual price of production and transportation