Moderators, put this on the front page because I am about to share critical information for every patriotic Nigerian.

This week, Dangote Cement's manager Edwin Devakumar went on national TV and lied to the Nigerian public. But instead of conducting real journalism, Arise News gave him a platform to spout gross falsehoods and inaccuracies. Dangote Cement claims cement is cheaper in Nigeria than in Zambia, Ghana, and other countries. Now I will provide evidence from Dangote's own financial reports that disprove that statement.

See the first attached image of Dangote's 2019 earnings report, where he reveals his ex-factory prices per ton in different African markets. https://www.dangotecement.com/wp-content/uploads/reports/2020/FY2019/DangoteCement_FY2019_ResultsStatement.pdf

The Nigerian market: Image 1 and 2

On page 4, paragraph 5, Dangote states quote In " In dollar terms, ex-factory cement prices averaged $112/t for the FY 2019" -- $112 per ton is the equivalent of 0.112 per kilogram or $5.6 (2,100 Naira ) per bag.

On page 11 of his 2019 earnings presentation, he reports a production cost of only $33.6 per ton, which is 0.0336 per kilogram or 1.68 (641 Naira) per bag. This calculation gives Dangote cement a higher profit margin than Ferrari, Gucci, or Rolls Royce, which is unacceptable for the cement industry, where a normal margin is 5% to 10%. It indicates extreme oligopoly and possible corruption in the industry.

In the Zambian/Ghanaian markets: Image 3

On page 6, under the Zambia section, Dangote states quote " In dollar terms, ex-factory cement prices averaged $70/t for the FY 2019." The report also notes that ex-factory prices in Ghana are $98 per tonne.

$112 per tonne in Nigeria compared to $70 per tonne in Zambia in 2019, the last year he provided a breakdown of his ex-factory price in countries outside Nigeria. 2020 Ex-factory prices in Nigeria were quoted at 45,179 naira per ton, which is roughly $118. This means Dangote Cement is still increasing prices despite its already inflated profit margins.

Liberalize the cement industry, or Nigeria is doomed. The country needs at least 5-10 competitors to prevent oligopoly.

Cheif Iweta explains how Dangote destroyed competition in the cement industry:

https://www.thenigerianvoice.com/movie/54550/real-reasons-cement-price-is-high-iweta.html

"I think in the cement industry today, there is absolute crisis, and the crisis is artificial; created by the deceitful effort of a cabal whose members are also using the Federal Government agencies, like the Ministry of Commerce and Industry, to perpetrate evil against the country. The ultimate aim was to make the cabal and the so called local cement manufacturer who want to make abnormal profit of over 100 to 200 percent."

Rabiu of BUA Group begs Nigeria to liberalize the industry, although the current policy benefits him:

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

"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?"

Edwin Devamkumar lies on national TV


https://www.youtube.com/watch?v=cBK5wfAmhwg

If truly Dangote inflate the price of cement, why are other cement brands selling at the same price with dangote?

aremuforlife:
If truly Dangote inflate the price of cement, why are other cement brands selling at the same price with dangote?

Because three competitors is not enough to create competition. In economics, that's called an oligopoly. They can't even meet all the demand in the market so they coordinate with each other to jack up prices. The solution is to liberalize the market and/or allow imports.

Thank you so much for opening our eyes Mr. Akonomist.
God bless you real good.
It's so obvious we have rogues and insensitive people in government thats why no one is asking questions.
I wonder why Mr. Edwin was talking about diesel in his interview with Arise TV,Dangote generates power (IPP) using gas which is cheaper.

Cement shouldnt be more than N1,500 in Nigeria.

Akonomist:
Because three competitors is not enough to create competition. In economics, that's called an oligopoly. They can't even meet all the demand in the market so they coordinate with each other to jack up prices. The solution is to liberalize the market and/or allow imports.

Has any interested party been denied licence?

Akonomist:
Rabiu of BUA Group begs Nigeria to liberalize the industry, although the current policy benefits him:

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

"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?"

He is still talking with the side of his mouth!

415volt:
Thank you so much for opening our eyes Mr. Akonomist.
God bless you real good.
It's so obvious we have rogues and insensitive people in government thats why no one is asking questions.
I wonder why Mr. Edwin was talking about diesel in his interview with Arise TV,Dangote generates power (IPP) using gas which is cheaper.

Cement shouldnt be more that N1,500 in Nigeria.

More than 500NGN... They get limestone for free!

I will say this you National Assembly members are the cause of this nonsense!

aremuforlife:

Has any interested party been denied licence?

Good question