Bofoy4:
Dangote is wicked


in fact we need revolution in this country

very soon attack on dangote and his company will start.
Dangote is not the only one producing cement though their are political under tone.

UnabashedIPOB:


Monopoly of what ?This is an interview question.

His investment is related to profit, so what are you saying?

WOW! I am sorry I engaged you in a discussion that's above your intellectual comprehension. First off, you have no clue what monopoly means other than your simpleton understanding of it and secondly, you lack the ability to use a given data and apply it to an issue at hand. I apologize. I did not know your level of knowledge. You know, social media has made every IDIOT and numbskull an expert on issues that used to be only within the province of intellectuals.

supportnija:
Useless men in power, cut your allowance, salary to save economy, I hate these people.

sonnie10:
Good development. its long over due.

Check Alibaba, almost all the confirmed sellers have their cement for $60 ( 29,000 naira) per ton (20 of 50kg bag) . So a bag is about #1450 (naira). The difference is too much!

If the manufacturers do not want to comply, the senate should just lift ban on importation. After all, the tax from all the manufacturer is nothing compared with import duty. Even the employment opportunities they provide could be compensated through creation of more construction work as a result of reduced cement price.

Dammyseyon:

Lol, I like to learn. How many percent market share does amazon control in the E-commerce industry? Less than 50 if you do your findings well. Samsung is topping the mobile technology industry with just 23% market share. I can't do all the research for you, you can help yourself to be informed. Why do you think facebook acquired WhatsApp, Instagram and even tried to acquire Tik-Tok? Read up on monopolistic competition. Thanks. I await your response

Tayeni:
You made a strong point with the profit data of Dangote cement. But, don't you think the high cost of cement could be attributed to the non existing key infrastructures like power and transportation.

Ideally, cement is best transported by rail not trucks. i learnt he built some roads leading to his factory himself. Assembles his trucks himself. Has a dedicated gas power plant. The general business environment in Nigeria is unstructured and hostile. What do you think?

AllenSpencer:


Competition or monopolistic competition.

This monopolistic competition is just an accusation. Every successful business wants to grow and spread his wings. Why accusing the financial strength of an individual.

Lets assume your monopolistic competition is valid, what are the competitors business strategy? Fold their arms and accuse the industry leader for having a large market share.

My point is that, In a competitive market, you cant accuse the largest market shareholder while exonerating competitors. You make it look like Dangote is responsible for his competitors woes.

Over 10 companies have licenses to build refinery as it stands today, one has not invested the way Dangote is doing, at the end of the day, people start screaming monopoly. Is Dangote deciding for all the billionaires in Nigeria not to compete with him.

Dangote`s competitor's are also worth billions and opened t several strategic options, Is it Dangote that is denying them loans . Give it to those businessmen. They take high risk and reap big. When the lose, we dont call them monopolistic losers

Krismas:
Your error is in not properly differentiating MONOPOLY from MONOPOLISTIC TENDENCY or UNFAIR COMPETITION . Dangote cement is not a MONOPOLY

AllenSpencer:


Come and learn UnabashedIPOB

Can you see how he hit the nail on the head briefly.

"Oligopoly "

And you are screaming monopoly upandan Nairaland

Mr. Educated

Your economics teacher should be killed if still alive.

Dammyseyon:


Candidly speaking, I'm enjoying your write up. You know what you are saying and I must accept you are making some point. But would you agree with me Dangote wouldnt be enjoying the kind of trade liberalism if it weren't for the government support in terms of embargo placed on importation of what he produce that can be imported at cheaper cost or high import duties placed on the few allowed ones? Look at the recent controversy on BUA's sugar plant stirring up just to pave way for Dangote? Do you know the closed border recently opened were opened because of Dangote? Our government is the reason Dangote controls our economy. Monopolistic competition makes producers dictate price. Unfortunately, there's little or nothing we can do about it.

Hideki:
it will put more pressure on FX. We will need the dollars we don't have to import the cement. hence the price can jump to 5k

UnabashedIPOB:



Your economics teacher should be killed if still alive.

Not only are you dumb as a rock , you are funny as well. You 're the one that needs to go and hang yourself for your idiocy. It seems like your brain does not have enough cells to be able to reason both simple and complex concepts. Buh-bye!

Officialhorlah:

https://thenationonlineng.net/senate-moves-to-cut-cement-prices/

AllenSpencer:




Mr. Educated that finds it difficult to understand monopoly. Mention Dangote's monopoly, and he starts composing a novel.

Did you see the brilliant analysis that dude made? He was able to come with detailed analysis and recommendation in brief.

AllenSpencer:


When you said oligopoly, I did not contest that cos am certain that's what playing. Accusing Dangote I totally disagree cos in a free market, his competitors should be able to capitalize on his prices, but this is not the case. They follow each other at 100Naira price difference.

Can we say Dangote is monopolistic? If agree to say yes, then we must also accuse his competitors for their incompetence.


You talked about importation and that will kill local production and demand on forex. The idea is all about Dangote and people forget the fact that before importation will kill Dangote cement, all of his competitors would have gone bankrupt.

You can take Dangote out. He has invested heavily and deserves that kudos. If government should regulate price, I believe Dangote can fall in line and still dominate. His competitors who feel the major impact considering their market share and production capability.

9jaRealist:


They were run into the ground by POOR government management....

Nonetheless, Ewekoro still exists. It is owned by Lafarge (used to be Blue Circle UK, before Lafarge acquired Blue Circle), which is the world’s BIGGEST AND MOST POWERFUL producer of cement. The irony was that despite the fact that Lafarge has been in Nigeria since the 1950s/60s (as well other major multinational cement producers like Holcim, Scancem, Heidelberg, etc.), before most of us were even born, it was until indigenous Nigerian producers like Dangote and BUA built world-class plants that Lafarge decided to rehabilitate and modernize its decrepit and polluting Ewekoro and Shagamu plants, and it was still bagging imported cement and producing/dumping low-quality 32.R-graded cement until Dangote and BUA came on the scene with locally-produced 42.R-grade cement (Dangote is the FIRST, and likely remains the ONLY producer, in Africa of 52.5R-grade cement, the highest quality globally).

Bendel Cement was acquired by BUA Group under the Obasanjo privatization program, and has since been retrofitted and modernized, and a brand new plant added, and is now producing about 6 million tons/year (more than 10x its production under government management and ownership). Sokoto Cement was also acquired by BUA Group under the privatization program, and repeated the same modernized production upgrade feature as it did in Edo State. Calabar Cement Co., which was moribund and not producing, was acquired by Flour Mills under the same privatization program, and together with Holcim built a state-of-the-art new plant in Cross River State, and again has geometrically increased production levels and capacity. Similarly, when BCC Gboko was acquired by Dangote Cement under the same Obasanjo privatization program, it was moribund and NOT producing any cement. After so much objection by rent-seeking Benue politicians, Dangote Cement turned around the plant, increasing its capacity TEN-FOLD from 400K tons/year to 4 million tons/year, built a power plant (which supplies electricity to the local community and LGA), roads, clinic and housing. Meanwhile, Ebonyi politicians also engaged in a long fight against Ibeto Group’s acquisition of Nkalagu Cement Co., until relatively recently, and since then the Ibeto Group has awarded contracts to Sinoma for a total rebuild and modernization of the Nkalagu plant (as well as a second new plant nearby).

The entry of indigenous Nigerian producers like BUA and Dangote has helped transform Nigeria from the world’s second-largest importer of cement (only second to the US) to an EXPORTER of cement, saving billions of dollars previously spent on importation, earning millions of dollars from exports, and CREATING TENS OF THOUSANDS OF JOBS IN NIGERIA FOR NIGERIANS! Only people who celebrate failure and denigrate success would want Nigeria to return to the old regime of poorly run government-owned cement companies, and massive imports. SMH
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Arcridwan:
Senator Lola ashiru is an architect that is why he move that motion that is Nigeria for us you do you what will please you

UnabashedIPOB:


No, Dangote is a monopoly and is engaged in price fixing as well. Your confusion stems from the fact that your definition of monopoly is narrowly defined as a market structure characterized by a single seller, selling a unique product in the market where the seller faces no competition, as he is the sole seller of goods with no close substitute. He enjoys the power of setting the price for his goods. But you fail to understand also there's monopoly when a single company or a group of companies becomes large enough to own all or nearly all of the market (goods, supplies, commodities, infrastructure, and assets) for a particular type of product or service. If and when you can wrap your head around that, then may be you can begin to understand that monopoly is not just when one seller or manufacturer is involved.

9jaRealist:


There are NO entry barriers to the cement industry in Nigeria...
Other than the hundreds of millions of US dollars needed to build cement plants.

Even Flour Mills ventured into the cement manufacturing business.
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UnabashedIPOB:


My bad my brother! Sorry, for coming off like that. I just got tired of IDIOTS here who have bought hook line and sinker the FULANI agenda and propaganda. All HAIL BIAFRA!!

lionphil:


It's alright my brother. It's either they give us Biafra or Biafra. Nothing else will do.

9jaRealist:




You lot should quit partaking in illegality...
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vibbb:
A working govt policy will checkmate production prices across board (Production companies generally) but the question is: Do we have a working govt.?