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Why Exactly Is The Cement Price Going Up This Way? - Business (3) - Nairaland

Nairaland Forum / Nairaland / General / Business / Why Exactly Is The Cement Price Going Up This Way? (39924 Views)

BUA Moves To Crash Cement Price To N3,500 After Meeting Tinubu / BUA Promises To Reduce Cement Price / Dangote: Our Cement Price Is Lower In Nigeria Than Other Countries (2) (3) (4)

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Re: Why Exactly Is The Cement Price Going Up This Way? by Yemmysworld91: 11:44am On Feb 17
Passionnn:
Open Google and type
WHO OWNS NIGERIA?
Then come back and let's discuss
.
Though I must agree that Dangote is one of the major problems we have in this country, but this your claim is fallacious.

conduct a similar search for other countries and the results will show the billionaire of each country being listed as the owner of that country. In the case for China, where Jack Ma will be shown as the owner of China.

4 Likes

Re: Why Exactly Is The Cement Price Going Up This Way? by nairalanda1(m): 11:45am On Feb 17
MASTERCHIEF0847:

So cost of production has remained the same for cement manufacturers while everything else is on the increase?
Make una dey use una brain before making a comment abeg.
Cement production involves mining with heavy equipment that can only be imported as well as it's spare parts and paid for in dollars,those responsible for repairs are also expatriates who will not be paid in naira, add cost of diesel for running the factory at over 1000 naira per liter as well as importing gypsum and others then you will understand. Pay a visit to the quarry of any cement manufacturer then you will understand cement production is capital intensive.

Been reading your comment, and seeing the response.

The reason why they abuse you is simple. The average Nigerian wants every businessman to sell him or her cheap products. Meanwhile, he or she won't be doing that for their business, and when you confront them, them go say that it is their right to set their prices..lol.

1 Like

Re: Why Exactly Is The Cement Price Going Up This Way? by Kingbuhari(m): 11:47am On Feb 17
E no concern me because I don japa
Re: Why Exactly Is The Cement Price Going Up This Way? by GreenCovering: 11:47am On Feb 17
Gypsum sourcing in Nigeria

1 Like 1 Share

Re: Why Exactly Is The Cement Price Going Up This Way? by Buharidgeneral: 11:47am On Feb 17
We will know the true price during the raining season
Re: Why Exactly Is The Cement Price Going Up This Way? by ToyozzieTohSwt: 11:49am On Feb 17
Well, whether we talk about this or not it will keep increasing. We should be asking why if price of something in Nigeria increases, it never decreases again



Anyways, I buy/sell coins, swap giftcards and e-wallet funds to Naira at the best rates only on XPM Exchange. LINK IN SIGNATURE to begin


That's all
Re: Why Exactly Is The Cement Price Going Up This Way? by aywagze(m): 11:51am On Feb 17
simple economics ..this is what you get when you are just printing money and values are not created. there is no relative productions ..🤔
Re: Why Exactly Is The Cement Price Going Up This Way? by persius555(m): 11:54am On Feb 17
We need to allow competitors from outside come in to compete in this space. We're at the mercy of fellow Nigerians who call to be local but thirst for foreign status.
Re: Why Exactly Is The Cement Price Going Up This Way? by nairalanda1(m): 11:56am On Feb 17
BluntCrazeMan:
Please I need someone to explain it fully to me - like as if I'm 10yrs old.

Why exactly is the price of cement going up this way?? What exactly really happened?

Is the price only affecting Just Dangote Cement?
Or it also affected all the other cement brands like Bua and Elephant.??

IN addtion to the answers given

1. There aren't many cement manufacturers in the country, and if more people (not just one, several more) are licensed to manufacture cement, there may be more cement in the country, and thus prices come down

2. Government is spending more on concrete roads, and then there are the planned mass housing projects...meaning a lot more cement gets mopped up, not too much in the market.

Above two are summarized from a Punch article from feb 11

1 Like

Re: Why Exactly Is The Cement Price Going Up This Way? by worldclass68(m): 11:56am On Feb 17
Passionnn:
Open Google and type
WHO OWNS NIGERIA?
Then come back and let's discuss



Its just Google algorithms doing nonsense and not only Nigeria alone, search for China or other countries and see Google bringing up someone wealthy from that country.

1 Like

Re: Why Exactly Is The Cement Price Going Up This Way? by Nice2023(m): 11:56am On Feb 17
Reliably,Dangote stopped selling cement last week.

And the news sent in shock wave across board and some people used the opportunity to hike price.

Nigeria is funny.
Re: Why Exactly Is The Cement Price Going Up This Way? by Quebec91(m): 11:58am On Feb 17
cheesy
Passionnn:
Open Google and type
WHO OWNS NIGERIA?
Then come back and let's discuss
Re: Why Exactly Is The Cement Price Going Up This Way? by chinonfelix2(m): 12:02pm On Feb 17
You are talking of cement.
What of rice,beans,garri,sugar,flour,oil even the corn he promised us.
Why are all these goods going up?
That should be the question.

2 Likes

Re: Why Exactly Is The Cement Price Going Up This Way? by ufotunang: 12:10pm On Feb 17
BluntCrazeMan:
Please I need someone to explain it fully to me - like as if I'm 10yrs old.

Why exactly is the price of cement going up this way?? What exactly really happened?

Is the price only affecting Just Dangote Cement?
Or it also affected all the other cement brands like Bua and Elephant.??
..the cause is the high costs of fuel, disel due to the removal of fuel subsidy, the dollars exchange rate rising everyday..1500 naira to a dollar...due to floating of the naira which makes the dollars to keep on rising and make the naira to lose value...this causes the costs of production of the cements to be high and the high costs of transporting the cement to the market....due to high costs of fuel and disel
Re: Why Exactly Is The Cement Price Going Up This Way? by dettolgel: 12:12pm On Feb 17
MASTERCHIEF0847:

Have you ever been to a cement factory? Have you seen the mining equipment used for mining limestone? To even service those equipment you have to bring in expatriates who will be paid in dollars, spare parts will be paid in dollars, same as importing stuff like gypsum which is imported and paid for in dollars. Those mining equipment and spare parts are not produced by INNOSON grin so they have to be imported from Europe mostly and it's paid for in dollars.
At least do a little research on cement production before you display your ignorance na.

You are asking him to do research grin

This is Nigeria if you had to put little effort into breathing most of them would have been dead by now. And you want such people to go through the pain of doing research which involves using ones brain. I tire for you.

Actually he should have visited those key industries as part of school excursions. But you and I know the state of our education system.

1 Like

Re: Why Exactly Is The Cement Price Going Up This Way? by YorubaKing: 12:13pm On Feb 17
MASTERCHIEF0847:

So cost of production has remained the same for cement manufacturers while everything else is on the increase?
Make una dey use una brain before making a comment abeg.
Cement production involves mining with heavy equipment that can only be imported as well as it's spare parts and paid for in dollars,those responsible for repairs are also expatriates who will not be paid in naira, add cost of diesel for running the factory at over 1000 naira per liter as well as importing gypsum and others then you will understand. Pay a visit to the quarry of any cement manufacturer then you will understand cement production is capital intensive.

Baba, you've NOT answered the question. OP is wondering why the cost of a nation's natural resource is this expensive to even its local market.

So you're telling me the cost of excavation and logistics is the major driving force behind skyrocketing prices? 🙄 Even to local markets?
Guy, these are beyond natural forces of macro economics, abeg.

When a nation headed by bloodthirsty Vagabonds-In-Power oils the wheels of a certain capitalist fool pretending to be a businessman, this is usually the result.
Re: Why Exactly Is The Cement Price Going Up This Way? by yewit37486: 12:18pm On Feb 17
chinonfelix2:
You are talking of cement.
What of rice,beans,garri,sugar,flour,oil even the corn he promised us.
Why are all these goods going up?
That should be the question.

Exactly.
Re: Why Exactly Is The Cement Price Going Up This Way? by paskal16: 12:20pm On Feb 17
Thieffnubu will take care of economy
Re: Why Exactly Is The Cement Price Going Up This Way? by 460olapitan: 12:23pm On Feb 17
Open Google and typeWHO OWNS NIGERIA?Then come back and let's discussOpen Google and typeWHO OWNS NIGERIA?Then come back and let's discuss...
Re: Why Exactly Is The Cement Price Going Up This Way? by KangaIye: 12:25pm On Feb 17
What is the rational behind the increase in Bag of Pure Water, the water used is sourced in Nigeria here tongue
Re: Why Exactly Is The Cement Price Going Up This Way? by drololaaof: 12:26pm On Feb 17
They are shylocks, there is no reason for the upwards rise of cement price, a product that over 90% of material are locally sourced.
Wind will blow their yansh open .
Re: Why Exactly Is The Cement Price Going Up This Way? by merry101: 12:27pm On Feb 17
Guy the players, dangote and co dey kill us


Tituxy:


Dangote owns Nigeria?

this is funny..and also worrying..
However you choose to see it,
Dangote seem to be bigger than Nigeria..
He is arguably the only man in Nigeria who breaks the rule and still win..
Re: Why Exactly Is The Cement Price Going Up This Way? by KangaIye: 12:28pm On Feb 17
Oxb90:
Enemy of Nigeria! You wey dey use your dirty brain, is there any justification for 16k a price of a bag of cement that is produced in Nigeria and over 95% of its raw materials are locally sauced?

What is the rational behind the increase in Bag of Pure Water, the water used is sourced in Nigeria here tongue
Re: Why Exactly Is The Cement Price Going Up This Way? by MamaletASO: 12:28pm On Feb 17
Oxb90:
Enemy of Nigeria! You wey dey use your dirty brain, is there any justification for 16k a price of a bag of cement that is produced in Nigeria and over 95% of its raw materials are locally sauced?

Don't mind that guy..he doesn't know what he is saying
Re: Why Exactly Is The Cement Price Going Up This Way? by ganiyud2001(m): 12:29pm On Feb 17
Are u justifying the increase in price that is triple within the space of 3-4 wks? Is dollar triple within the space of 3-4 weeks the production and maintainance rate triple suddenly between January and now? Was Government policies that affect price made now? Cost of diesel triple between January and now ? Just asking question
Re: Why Exactly Is The Cement Price Going Up This Way? by Majesty7: 12:30pm On Feb 17
Flier:
The price increase has nothing to do with corruption,it’s simply because of demand higher than supply,dealers are now selling their cement to neighboring countries to make double profit because of weak Naira something that is not a crime till government make it a crime

So, the neighbouring market demand is higher than the Nigerian market? Are the cement producers not selling outside the Nigerian market before? When we talk about policies, we mean, the policy not favourable tlfor cement startup. Do you think Bua, Dangote and Lafarge are the only cement manufacturers? No! The policy is not favourable. Your idea, regarding selling outside thereby increasing demand is completely false. Cement demand not that high that should make the product scarce.

You even mean dealers grin and not producers grin grin grin
Re: Why Exactly Is The Cement Price Going Up This Way? by qtx(m): 12:33pm On Feb 17
BluntCrazeMan:
Please I need someone to explain it fully to me - like as if I'm 10yrs old.

Why exactly is the price of cement going up this way?? What exactly really happened?

Is the price only affecting Just Dangote Cement?
Or it also affected all the other cement brands like Bua and Elephant.??

wat is not going up except salaries?
Re: Why Exactly Is The Cement Price Going Up This Way? by Blakjewelry(m): 12:38pm On Feb 17
MASTERCHIEF0847:

So cost of production has remained the same for cement manufacturers while everything else is on the increase?
Make una dey use una brain before making a comment abeg.
Cement production involves mining with heavy equipment that can only be imported as well as it's spare parts and paid for in dollars,those responsible for repairs are also expatriates who will not be paid in naira, add cost of diesel for running the factory at over 1000 naira per liter as well as importing gypsum and others then you will understand. Pay a visit to the quarry of any cement manufacturer then you will understand cement production is capital intensive.
shhh all these are silly excuses. One is one of the major factor of production in that sector is diesel and we haven't seen a major sharp increase lately.

You people deserve what is happening, running to give excuse for every silly increase just to say I no tell una?

Nigeria is for everybody I won't derive joy from it pain.

We produce garri here for years then all of a sudden the price keep jumping astronomically you will tell me it because of dollars.
Nigeria is the only country were the rules of both basic and complex theory of economy don't hold.

I know of someone who imports a hp laptop for 120k when dollar was 460k 2 years ago and he is still bringing same laptop for same price today when dollar is 150 because price depreciate over there as time goes on but when that laptops gets here people do sell for 270k infact as them year say dollar increase, they automatically increase their old stock. We are just too wicked as a people.

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Re: Why Exactly Is The Cement Price Going Up This Way? by gbagyiza: 12:39pm On Feb 17
MASTERCHIEF0847:

So cost of production has remained the same for cement manufacturers while everything else is on the increase?
Make una dey use una brain before making a comment abeg.
Cement production involves mining with heavy equipment that can only be imported as well as it's spare parts and paid for in dollars,those responsible for repairs are also expatriates who will not be paid in naira, add cost of diesel for running the factory at over 1000 naira per liter as well as importing gypsum and others then you will understand. Pay a visit to the quarry of any cement manufacturer then you will understand cement production is capital intensive.

You spoke as someone who has the knowledge in cement production. I guess u work there or you have someone who works there. Another factor u did not mention is the scarcity of the product as a result of reduction in production capacities by the cement manufacturing companies which also contributed in pushing the price up within a short period, but I believe Government can do something to bring the price down.

1 Like

Re: Why Exactly Is The Cement Price Going Up This Way? by VeeVeeMyLuv(m): 12:41pm On Feb 17
nairalanda1:


IN addtion to the answers given

1. There aren't many cement manufacturers in the country, and if more people (not just one, several more) are licensed to manufacture cement, there may be more cement in the country, and thus prices come down

2. Government is spending more on concrete roads, and then there are the planned mass housing projects...meaning a lot more cement gets mopped up, not too much in the market.

Above two are summarized from a Punch article from feb 11
Exactly
Competition! Give the so-called monopoly a run for their money 💰

It is what gave birth to companies like Ford and Google, crashing the whole price down, make it available to more people.

See Alonso stepping up to take over from the present generation of coaches. Look at Jugen Klopp acknowledgement of this fact.
Re: Why Exactly Is The Cement Price Going Up This Way? by victorazy(m): 12:51pm On Feb 17
MASTERCHIEF0847:
Increase in cost of production, transportation etc... that is what you get in a dollar-dependent economy.

Oga na lie!

Na Northern elites with their tools just to frustrate any government not headed by them.

That's why they were destroying farm lands of other zones, na only them can obtain license to build and own filling stations. These are key points that holds Nigeria, food, security & oil.

Is a long time planed something.
Re: Why Exactly Is The Cement Price Going Up This Way? by Ckonnet: 12:55pm On Feb 17
BluntCrazeMan:
If the materials for producing cement are sourced locally,, what has DOLLARS got to do with its cost of production.??

Machinery which includes spare parts
Fuel be it diesel,gas or petrol
Logistics

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