Management of Dangote Cement Plc has said yesterday that the price of its product per bag from the factory was between N2,450 in Obajana and Gboko, and N2,510 in Ibese, inclusive of VAT.

The clarification came against the backdrop 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, who gave the clarification at an interface with journalists in Lagos, 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.

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He said that though the company has direct control over its ex-factory prices, it could control the ultimate price of cement in the market.

According to him, it is important to distinguish Dangote’s ex-factory prices from prices at which retailers sell cement in the market.

He frowned on intentional misinformation or demarketing allegedly sponsored by some individuals to the effect that Dangote sells its cement at higher prices in Nigeria relative to other African countries at the expense of Nigerians.

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Devakumar described the allegation as false, misleading, and unfounded, and challenged the media to conduct independent investigation into the price of cement in some other African countries, including Cameroun, Ghana, Sierra Leone, Zambia.

‘’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.”

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“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’’, Devakumar said.

Xdesign79:
This what happen when govt would not control the price of commodity in the country....everybody does what they like...its so sad.

Kabongo1:
Where can I buy cement for 2500 in Nigeria Please?

thesicilian:
When you consider the overall cost of doing business in Nigeria, including taxes, logistics, raw materials, etc, you'll actually agree with what Dangote is saying.

Xdesign79:
This what happen when govt would not control the price of commodity in the country....everybody does what they like...its so sad.

owobokiri:

Which taxes? The one they refuse to pay? They ones they don't pay in other African countries? Which "overall cost of doing business"? They're almost getting limestones for free! Explain exactly how the cost of doing business in Nigeria is responsible for almost 5k per bag of cement! He sold cement for almost 2k under Jonathan.
Dangote is even trying to shift the blames to the traditional bogey man here, the "middle men", you are the one pushing a tired excuse of "cost of doing business"..
Don't know why every evil in this country must have a supporter...

FOLYKAZE:


You don't have to lie to substantiate your points. Where are they selling cement at ₦5,000 per bag? Can you show us receipt evidence?

FOLYKAZE:


Cement is sold at the rate of ₦3,000 per bag. It should go for ₦2500 as stated by DCP but we need to honestly add logistic cost, transportation cost, and other expenses like store rent, security, loading costs from the retailer and distributor end. Also note that retailers are selling for profit, not running charity.

owobokiri:


People like you who tell ordinary citizens to go and start a cement factory if they want to bring down the price of cement are the biggest problems we have in this unfortunate country! You're too vicious for your own good!

A comparative analysis of cement prices across borders in Africa was posted here few days ago, showing the disparities in prices, including in countries with Dangote outlets. Your response is to start talking of cost of doing business in Nigeria... Go to obajana, Dangote is getting his local raw materials almost FREE! If we have to factor in the cost of imported raw materials, it's only fair we take into consideration the fact that he gets away with all sorts of privileges in this country, including tax cuts, free access to mineral resources, cheap labor and endless grants! Cement production used to be in the exclusive list, mind you. So it's a highly profitable and economically sensitive aspect of the local economy! Dangotes irresponsible business practices in this front is directly effecting the way Nigerians live. And yes! Cement sold for over 4,500 per bag in certain places in the east recently! That's totally obnoxious.?

nwimo22:
I bought cement at N4,000 yesterday in Owerri

dvdwed:
That fair enough.

#2,500 - Factory Cost price
# 300 - Delivery
# 200 - Retail Profit


Averaging #3,000 to #3,500

Dangote is not the problem , the guys printing more #60b naira notes, yeyerizing the naira. Bubu and his gang.

FOLYKAZE:


You were lying with every single punches from your finger that cement is sold outrageously at the rate of ₦5,000. You turn around yelling it is sold at ₦4500 in the east. Where is your evidence? You are only asked to provide an invoice showing the rate but you can't submit any.

What raw material does DCP get absolutely free? Is limestone the only material needed for producing cement? And where is the evidence DCP gets limestone absolutely free as you suggested? Tax cut, cheap labor, limitless grants...you can cook all those bullshit from your bumbum. It's all riddle with lies unless you provide substantive evidence.

DCP has stated they produce and sell from the factory at the rate of ₦2,500. The middlemen and retailers are free to add their own expensive cost of logistic and transport, rent, labor, and profit to arrive at ₦3,000 which cement are sold at retail outlets.

owobokiri:

Don't have the interest to go back and forth with a "monument to mischief" like you...
Cement prices in Nigeria is a very topical issue which a whole lot of families are grappling with. This is a country where individuals more else carter for their housing needs. You can play to the gallery, but facts are facts. And facts are that Dangote was caught selling cement in other African countries with logistical challenges worse than Nigerias.., half the cost he sells in Nigeria! That's where the rub is. You can't spin that one..., hard as you try. I told you that cement was sold in this country for almost 5k! I stand by that because I know when it sold around 4.5k in certain areas in the east. You can now keep entertaining yourself on this thread for stipends, it doesn't change the fact that Dangote your paymaster has the Nigerian economy on a chokehold and must be stopped!

owobokiri:

Which taxes? The one they refuse to pay? They ones they don't pay in other African countries? Which "overall cost of doing business"? They're almost getting limestones for free! Explain exactly how the cost of doing business in Nigeria is responsible for almost 5k per bag of cement! He sold cement for almost 2k under Jonathan.
Dangote is even trying to shift the blames to the traditional bogey man here, the "middle men", you are the one pushing a tired excuse of "cost of doing business"..
Don't know why every evil in this country must have a supporter...

FOLYKAZE:


You were lying with every single punches from your finger that cement is sold outrageously at the rate of ₦5,000. You turn around yelling it is sold at ₦4500 in the east. Where is your evidence? You are only asked to provide an invoice showing the rate but you can't submit any.

What raw material does DCP get absolutely free? Is limestone the only material needed for producing cement? And where is the evidence DCP gets limestone absolutely free as you suggested? Tax cut, cheap labor, limitless grants...you can cook all those bullshit from your bumbum. It's all riddle with lies unless you provide substantive evidence.

DCP has stated they produce and sell from the factory at the rate of ₦2,500. The middlemen and retailers are free to add their own expensive cost of logistic and transport, rent, labor, and profit to arrive at ₦3,000 which cement are sold at retail outlets.