AllenSpencer:


Dont mind the dull brains

Hate and jealousy has ruined their life's

Why their last ten generations never succeeded in life.

Painting a picture that Dangote dictates price for other cement manufactureres.

As if Toyota determines the price for Maserati

You don't seem to understand how price fixing works among a small cartel of suppliers who dictate terms in a closed market. The funny thing is that Dangote cooperated with Zambian authorities investigating a price fixing scheme hatched up by the 3 leading suppliers of cement in the country (including Dangote and LaFarge Zambia) after they conspired to hike cement prices in Zambia. The other 2 companies were heavily fined, while Dangote who snitched on those companies was simply ordered to reduce its prices. Economic protectionism has handed the overwhelming majority of Nigeria's cement production to just 3 companies. Entry barriers to the sector are very high due to the backwards integration policy mandate for all players in the sector, and systemic advantages Dangote and the other top 2 players have enjoyed with initial import waivers, and forex waivers and tax credits, making it very hard for new players to compete. Due to the protectionist measures (ostensibly to promote local content), demand far outstrips supply and with these 3 companies knowing full well that they control the entire closed market and a government who do not keep them in check, they can conspire to fix prices to the benefit of all 3 players. BUA himself has admitted that the 3 big players make monstrous, easy profits and called for more liberal policies in the sector. If any of the 3 companies decided to crash prices, it would make little difference in their market share, for the simple fact that their installed production capacity would remain the same. Capturing the market with lower prices will only make sense when you can meet local demand and everyone can run to you to buy your product and boycott the price gougers.

The bottomline is that the portrayals of Dangote's immense success solely to his capitalistic genius is misguided. He's an oligarch in the model of many Russian and East European billionaires who profited from monopolizing markets after the collapse of communism, and he preys on an underregulated Nigerian market where the government doesn't seem to understand its role in enforcing anti-trust laws that stop predators from abusing their strangle-hold on the local market. These things are in plain sight and they are not hidden. You can read Dangote Cement annual financial reports and compare his profit margins in Nigeria with his vastly smaller profit margins in other African countries where he operates. If the government wants to ban the importation of bulk cement, the least it can do is not allow a small cartel of companies to hold the entire country to ransom with price-gouging.

When you were blessed people normally what your downfall.

jmoore:
Dangote and price of cement.

Most of us like to follow the crowd. The crowd sometimes act based on emotions.

Dangote is not the only cement manufacturer in Nigeria. We have Lafarge and BUA. So why are the blames all pointed at Dangote?

I haven't seen any post that listed prices of Lafarge and BUA cement.

If Lafarge and BUA are cheaper than Dangote, then go for the cheaper ones.

If all of them have same prices, then 'crucify' all. Not dragging only Dangote.

Dangote is from the “wrong” ethnic group...
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Obi1kenobi:
You don't seem to understand how price fixing works among a small cartel of suppliers who dictate terms in a closed market. The funny thing is that Dangote cooperated with Zambian authorities investigating a price fixing scheme hatched up by the 3 leading suppliers of cement in the country (including Dangote and LaFarge Zambia) after they conspired to hike cement prices in Zambia. The other 2 companies were heavily fined, while Dangote who snitched on those companies was simply ordered to reduce its prices. Economic protectionism has handed the overwhelming majority of Nigeria's cement production to just 3 companies. Entry barriers to the sector are very high due to the backwards integration policy mandate for all players in the sector, and systemic advantages Dangote and the other top 2 players have enjoyed with initial import waivers, and forex waivers and tax credits, making it very hard for new players to compete. Due to the protectionist measures (ostensibly to promote local content), demand far outstrips supply and with these 3 companies knowing full well that they control the entire closed market and a government who do not keep them in check, they can conspire to fix prices to the benefit of all 3 players. BUA himself has admitted that the 3 big players make monstrous, easy profits and called for more liberal policies in the sector. If any of the 3 companies decided to crash prices, it would make little difference in their market share, for the simple fact that their installed production capacity would remain the same. Capturing the market with lower prices will only make sense when you can meet local demand and everyone can run to you to buy your product and boycott the price gougers.

The bottomline is that the portrayals of Dangote's immense success solely to his capitalistic genius is misguided. He's an oligarch in the model of many Russian and East European billionaires who profited from monopolizing markets after the collapse of communism, and he preys on an underregulated Nigerian market where the government doesn't seem to understand its role in enforcing anti-trust laws that stop predators from abusing their strangle-hold on the local market. These things are in plain sight and they are not hidden. You can read Dangote Cement annual financial reports and compare his profit margins in Nigeria with his vastly smaller profit margins in other African countries where he operates. If the government wants to ban the importation of bulk cement, the least it can do is not allow a small cartel of companies to hold the entire country to ransom with price-gouging.

Tales by the Moonlight...
Why don’t you go take similar advantage of the “under regulated” Nigerian market? SMH
>

omonnakoda:
Lafarge is the biggest cement company in the world
Dangote is NOT in the top 10

FarahAideed:
Don't mind propaganda ..why hasn't Bua made his cement 1000 and cut off Dangote

Bless you both...

I have the Naysayers the same question...
Why is the competition not undercutting Dangote’s prices?!
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philfearon:
It's because he is in every one's face. Since the FG has encouraged him to shove his cement down everyone's throat, the onus is on his company to make it affordable to all at reasonable price.

Both Lafarge and BUA won't sell #3,000 when Dangote Cement is selling at #1500 for Instance. It's common sense!

Make it affordable how?

Why didn't lafarge sell at 1500
Why don't you make your own cement and sell at 1500