Aconomist:
Nothing you say makes sense. Why are you brining up fuel, which is influenced by subsidy and international oil prices? This is not comparable to cement. I don't know what they teach you people in school, but you lack basic reasoning.

I don't expect change to happen all at once but we can start from somewhere
Why not everyone boycott Dangote's product's?
We Nigerian's are after the name,we will still go for his product's.
If we start boycotting him and going for other companies, we will be giving them our supports and this in turn will boost other investors morales to venture into the production.
We Nigerians see a problem, we know the root but yet we do nothing.
Look at the issue of Banks
Have we sat down to ask ourselves why POS business is now really booming everywhere in the Country??
This is totally wrong,a Bank will have about 6 ATM's and only one working,forcing people to use POS and pay #100,every sector is ripping us off but yet we take no actions,we only complain and leave it..
This will keep happening till we start talking about the minor issues and actioning the solution

brandsoncharlie:

The price must not be the same but his profit margin is very high compared to Zambia despite the fact their economy may be more favorable in terms of production and others.

Hhmm.... Do you know their profit margin in both countries? Do you have access to their costing sheet and pricing details? Do you have access to their balance sheet and P/L reports? OP only shared the cost of a bag cement when converted to NGN. It wouldn't make any financial sense to address that in isolation. How much does he pay employees there? How much do tenants pay there? Maybe when we covert all those to NGN and put other economic factors into consideration, we'd have a better idea. But we definitely can't just compare the prices at face value. I don't live in Nigeria and my monthly house rent, when converted to NGN is more than 550k. If you multiple that by 12 and compare the product with the annual rent of similar apartments in Nigeria, you'd also believe it's outrageous. But it isn't and when all factors are considered (income vs expenditures), you'd see it has more or less the same value in Nigeria. Actually, I don't know if Dangote's margin is high or low but I think it'll be very similar in both countries.

Staphylococcus:


And Ibeto, Lafarge and Ashaka are selling far cheaper shey!

You are not brilliant.

Why cant competitors crash price? Cos its not profitable

You are not smart. it's very obvious. the major reason why they can't cut their prices is because Dangote controls more than 60% of the market share. he determines the price. That's why he's regarded as a monopolist. Have you ever wondered why Dangote exited from the noodles market, the flour market, water business and the juice business? the answer is simple. they were other serious players in each of the aforementioned business.
Dangote likes to play in a business where he's clearly the market leader so that we can determine the price whenever he likes. This is a huge economic malpractices.
I guess you wouldn't understand this, you aren't that smart afterall

Lucrativress:

I don't expect change to happen all at once but we can start from somewhere
Why not everyone boycott Dangote's product's?
We Nigerian's are after the name,we will still go for his product's.
If we start boycotting him and going for other companies, we will be giving them our supports and this in turn will boost other investors morales to venture into the production.
We Nigerians see a problem, we know the root but yet we do nothing.
Look at the issue of Banks
Have we sat down to ask ourselves why POS business is now really booming everywhere in the Country??
This is totally wrong,a Bank will have about 6 ATM's and only one working,forcing people to use POS and pay #100,every sector is ripping us off but yet we take no actions,we only complain and leave it..
This will keep happening till we start talking about the minor issues and actioning the solution

The only thing Nigerians listen to is violence, unfortunately. We fix the cement industry with massive protests. Like ENDSARS.

Public pressure against Dangote is growing.

Tobbit:
Following our fights on your CBD thread about this. I'm glad you finally took it up, did your research and you're now seeing the light.

I passed a memo yesterday following an information I came across. I hope you are looking into that aswell


Shell Petroleum is out with an exclusive information..



It's a clause within the PIB Bill that is aimed at granting Dangote the sole right to export crude out of the Country... Imagine. Time for another protest Nigerians. Spread the word.



Post this information on your timeline across all your social media handles to sensitive and inform people........ Let's kill this bill before it sees the light of the day..

If this is true, then I believe the ownership of this Business empire called Nigeria has just been transferred from the foreigners to the next owners as agreed 100 years ago.�

WoundedLamb:


Hhmm.... Do you know their profit margin in both countries? Do you have access to their costing sheet and pricing details? Do you have access to their balance sheet and P/L reports? OP only shared the cost of a bag cement when converted to NGN. It wouldn't make any financial sense to address that in isolation. How much does he pay employees there? How much do tenants pay there? Maybe when we covert all those to NGN and put other economic factors into consideration, we'd have a better idea. But we definitely can't just compare the prices at face value. I don't live in Nigeria and my monthly house rent, when converted to NGN is more than 550k. If you multiple that by 12 and compare the product with the annual rent of similar apartments in Nigeria, you'd also believe it's outrageous. But it isn't and when all factors are considered (income vs expenditures), you'd see it has more or less the same value in Nigeria. Actually, I don't know if Dangote's margin is high or low but I think it'll be very similar in both countries.

Dangote's margin in Nigeria is almost three times what it is in other African countries. I have analyzed all his financial statements.

Lucrativress:

I don't expect change to happen all at once but we can start from somewhere
Why not everyone boycott Dangote's product's?
We Nigerian's are after the name,we will still go for his product's.
If we start boycotting him and going for other companies, we will be giving them our supports and this in turn will boost other investors morales to venture into the production.
We Nigerians see a problem, we know the root but yet we do nothing.
Look at the issue of Banks
Have we sat down to ask ourselves why POS business is now really booming everywhere in the Country??
This is totally wrong,a Bank will have about 6 ATM's and only one working,forcing people to use POS and pay #100,every sector is ripping us off but yet we take no actions,we only complain and leave it..
This will keep happening till we start talking about the minor issues and actioning the solution

I never buy Dangote products. As in, never. It will shock you. Flour, sugar, salt, cement. Anything with that name, I boycott it

what about lafarge cement? Y only dangote.

ayterajah:
Am not supporting dangote but my point of view is that what's the economy state of Zambia compare to Nigeria and don't forget that dangote it's not alone ... he have many govt officials under him

No doubt Zambia economy is stronger than nigeria's economy at the moment but we should not be quick to forget that the cement is made here in nigeria. This fact alone should make cement not sell above 1500 Naira.

I can't really say much about this cos there could many factors contributing to the disparity. All I have been saying for many years now is that Dangote is one of our problems. You guys just wait and see how he's going to milk us dry through the refinery. The Govt has already prepared the table before him. He will refine at the cost he wants. He's going to double his net worth just less than 5 years of operation.
He loves monopoly cos he's not brainy enough to compete. Thanks to his friends in the Govt.

Tobbit:



Hahahahahahahahaha. Yes. Cause when one can't speak about one's activities with high level of intelligence, it means there's rottenness deep within. That's why no matter what he does Arsenal won't sell the club to him so he can white wash his image


He's stripping Nigerians to the bones but just few know it.


Cement should not be more than 2500/3500 Naira per bag.


When Dangote mentioned interest into Tomatoes, the market got destabilised, same Tomato that had revolved around 40/60 Naira for decades skyrocketed to 150/200 Naira


Now let me go deeper into the underlying econometrics of this.


If Tomato is farmed, processed, cost of maritime, haulage to Nigeria and the price steadies around 40/60 Naira for a decade, Home based productivity that benefits the masses should go below the import/retail price for the same size and not Quadriple it.


Which makes me beg our local outfits when they write stories why don't they get experts to run intelligent analysis on issues like this?


How should Tomato farmed in Italy/China cost five times lesser the proposed Nigerian price. And we want to maintain a strict almost closed market structure around it



The same thing is being done to Milk as we speak and will begin to roll out over the next few years


Local productivity isn't just about creating jobs if it's not going to result into subsidised reduction or close in prices to Imported goods, then should we bother about home based productivity atall?



The insult as a macroecononist that I am is Many average Nigerians will say fluctuations, light, power this that and that. Forgetting these guys mostly use casualties labours, generate huge finances from the stock market which in itself ought to be a stabiliser against sudden spikes in production chain


So I beg to wonder where are the elites



If I'm wrong, why is Milo still the same price inspite of different economic realities in the past 5 to 10 years. Kiln maintained the same price for over a decade. Nut No, Dangote must spike prices 50 times every 2 years, yet Nigerians are the ones financing it realistically and getting terrible Dividends that doesn't reflect profits his overall financial standings continue to reflect



I don't think Nigerians have professionals in the media. I doubt.

klin didn't maintain their price. as of klin 120g increase from 2100 to 2300. quantity wholesale. Milo maintained dia price for over 5 years now. but peak 16g (fullcream) skyrocketed from 9200 to 11300(quantity price) just within the space of 6 months.

heendrix:


The person that said Nigerians deserve the leaders we got or Nigerians deserve what we're going thr is not wrong

Trust these lunatics to keep defending Dangote while he's tearing them apart financially

There u carry on like an anointed umpire?You 4get, Dangote is a CAPITALIST! I mean C-A-P-I-T-A-L-I-S-T! What does that mean to u? Its the governments job to mitigate the worst excesses of capitalism, to regulate prices and combat monopolist business tendencies. Why do u think Dangote shud be HOLY-HOLY? U think he is a padre? No, he is businessman. Aside PMS, what else do u see government intrested in influencing? Transport fare hike like bitcoin during rush hour, yet its only Dangote u see? Landlord still collect 2yrs and high house rent. Market woman will cheat u mercilessly,sell u a paint of garri 5k if u dont know its 1k. Idont blame Dangote.

We are going to burn all he property useless set of people

BluDesk:




I never buy Dangote products. As in, never. It will shock you. Flour, sugar, salt, cement. Anything with that name, I boycott it

I'd actually start doing the same,it will seem like it will make no difference but this is the same scope they use for us during elections,like our votes don't count but na lie,if everyone decides to boycott his product's, we will see a massive change,just like if we all decide to go out and vote the right person in

After he will spend the money on one bumbum snapping ashawo for USA.

expliciit:
The dangote guy is a criminal, I have known this for a long time base on report and experts opinion that cement should not be more than #1000

I believe he has struck deals with policians and paid huge sums as bribes to get such free hand.

Aconomist:
EBITDA is the best way to get an apples to apples comparison between different companies. Dangote is not the only manufacturing company that invests in capital and property plant and equipment, so that doesn't justify the outrageous margin (which is around double the EBITDA margin of a Ferrari ). U.S. cement companies earn an average EBITDA margin of around 10%-12% compared to Dangote's 59%

link: https://www.macrotrends.net/stocks/charts/USCR/u-s-concrete/ebitda-margin

Dangote is price gouging the market, this is an indisputable fact. He influenced the government (through bribery) to create scarcity by banning imports and allowing him to hoard limestone resources to prevent other companies from entering the market. According to Rabiu of BUA Group, the only way to fix it is to liberalize the industry. He state's quote:

"The price of cement, which presently sells for about N4,000 per bag, remains high in Nigeria because the few producers are not able to meet the country’s huge demand. Nigeria’s 200 million people make it about 130 kilograms per head. If you check, you will see that most countries in Africa are doing between 170 kilogrammes to 200 kilogrammes per head.

So, Nigeria is actually producing less than other countries in Africa, apart from maybe Niger Republic. So, that means that we do not have enough capacity

“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,” he said, adding: “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

Read the full article for more information: https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

Cement capacity utilisation in Nigeria is not high. I do not think it is accurate to say cement producers cannot meet demand. If I am correct, demand has not been growing rapidly in the past few years, and supply has been tracking demand closely. Even if a lot of demand is truly unmet (which I do not think is true), why aren't cement producers ramping up production/utilisation?

I am neither agreeing nor disagreeing to your position on Dangote. This is Nigeria and I must say that Government is a major major risk factor for any business operating here. While other cement producers may be complaining when policies do not favour them, I definitely think they like the wider margins they earn in this market.

On imports, there is the need to assess whether imports would be net positive for the economy or not. Banning imports of course is a form of support for domestic companies, therefore, we cannot just say imports should be allowed without a clear indication of its net impact.

The bottom line is that the Nigerian cement manufacturing industry is one where strong government support is central. Even if there was no Dangote, as long as the policies are there, and there are willing investors, I am not sure things would be much different.

Lastly, compare the margins of the different producers. Could they really have survived if Dangote had kept EBITDA margins much lower? Lafarge is just coming out of financial rut and all those small companies BUA consolidated would probably have died before he thought to acquire them.

Again, I am neither for or against here, just a discussion.

Krismas:
There u carry on like an anointed umpire?You 4get, Dangote is a CAPITALIST! I mean C-A-P-I-T-A-L-I-S-T! What does that mean to u? Its the governments job to mitigate the worst excesses of capitalism, to regulate prices and combat monopolist business tendencies. Why do u think Dangote shud be HOLY-HOLY? U think he is a padre? No, he is businessman. Aside PMS, what else do u see government intrested in influencing? Transport fare hike like bitcoin during rush hour, yet its only Dangote u see? Landlord still collect 2yrs and high house rent. Market woman will cheat u mercilessly,sell u a paint of garri 5k if u dont know its 1k. Idont blame Dangote.

See listen Sir,our government is the problem yes,no proper checks and balance,each sector is using this deficiency to cheat the masses,if we decide to pick one and start from there to instill change,it is not bad,see that Bank own ehn,so so crazy,lastly they'll limit withdrawal to #5000,so they can rip you off #35-#50
There are many things we overlook in this country,this is what is giving other organizations the effrontery to exploit.
Let's start from somewhere.
See Garri,how the hell did fuel concern Garri??
Garri was still sold in Ikotun's Market for #250 last year February now it is #900-#1000 per paint.
And we accepted it like that
Bottle water is now #70.
All these little figures compounds to huge sums.
We have a long way to go but at least,let us start from somewhere.

Lucrativress:

I'd actually start doing the same,it will seem like it will make no difference but this is the same scope they use for us during elections,like our votes don't count but na lie,if everyone decides to boycott his product's, we will see a massive change,just like if we all decide to go out and vote the right person in

All the shop owners I buy groceries from know me. Once I need any product and it's only Dangote that is left, they don't bother tell me


I've not touched anything Dangote more than 10 times in 15 years period. I always look for his alternative however poor in quality and go for it..

somehow:


US does not have crude oil?

Wetin I no go hear!

most of u guys failed to comprehend my message but I will leave you to that

ezewealth:

klin didn't maintain their price. as of klin 120g increase from 2100 to 2300. quantity wholesale. Milo maintained dia price for over 5 years now. but peak 16g (fullcream) skyrocketed from 9200 to 11300(quantity price) just within the space of 6 months.

Obviously you don't know the detergent industry. Kiln was 20 Naira for atleast a decade. Do your homework. From 2002 to 2014,kiln remained at 20 Naira.

It is on this thread that I can see the level of idiocy in this country.

Do you all not know that Dangote has a cement factory in Zambia?

Can you tell me how much its costs to produce a bag of cement in Zambia? Compare that with Nigeria?

How do you know that his markup in Zambia is not higher than in Nigeria.?

I say all of you.......MUMU ni gbogbo yin.

Businessman dey e own dey do business jeje, you dey talk say e be your problem.

I feel like swearing for all of you, but I will keep quiet because you are all ignorant.

Inside our limestone sef, we still dey suffer

BluDesk:



All the shop owners I buy groceries from know me. Once I need any product and it's only Dangote that is left, they don't bother tell me


I've not touched anything Dangote more than 10 times in 15 years period. I always look for his alternative however poor in quality and go for it..

Wow that's working the talk
Highly commendable.
We Nigerians have to not just put it in mind that we're being cheated but do our parts in getting justice
Really you're highly commendable

TSBO:


Cement capacity utilisation in Nigeria is not high. I do not think it is accurate to say cement producers cannot meet demand. If I am correct, demand has not been growing rapidly in the past few years, and supply has been tracking demand closely. Even if a lot of demand is truly unmet (which I do not think is true), why aren't cement producers ramping up production/utilisation?

I am neither agreeing nor disagreeing to your position on Dangote. This is Nigeria and I must say that Government is a major major risk factor for any business operating here. While other cement producers may be complaining when policies do not favour them, I definitely think they like the wider margins they earn in this market.

On imports, there is the need to assess whether imports would be net positive for the economy or not. Banning imports of course is a form of support for domestic companies, therefore, we cannot just say imports should be allowed without a clear indication of its net impact.

The bottom line is that the Nigerian cement manufacturing industry is one where strong government support is central. Even if there was no Dangote, as long as the policies are there, and there are willing investors, I am not sure things would be much different.

Lastly, compare the margins of the different producers. Could they really have survived if Dangote had kept EBITDA margins much lower? Lafarge is just coming out of financial rut and all those small companies BUA consolidated would probably have died before he thought to acquire them.

Again, I am neither for or against here, just a discussion.

Sigh, you have to understand something called the demand curve. When prices are kept artificially high, demand will be at an artificially low level. This is why you need heavy competition in the industry. Cement is supposed to be a low margin industry where you sell massive volume to make a profit, not an industry where you produce below capacity and jack up prices.

Aconomist:
I've explained this numerous times. Liberalize the market. Allow imports if local companies can't produce at a reasonable price.

That's the perfect solution. Market liberalisation

EMIOMOADEOYE:
It is on this thread that I can see the level of idiocy in this country.

Do you all not know that Dangote has a cement factory in Zambia?

Can you tell me how much its costs to produce a bag of cement in Zambia? Compare that with Nigeria?

How do you know that his markup in Zambia is not higher than in Nigeria.?

I say all of you.......MUMU ni gbogbo yin.

Businessman dey e own dey do business jeje, you dey talk say e be your problem.

I feel like swearing for all of you, but I will keep quiet because you are all ignorant.

A wise man told me
As long as foolish people are still many in Nigeria
Getting Rich will keep being very easy....

LMS1:
One Tribe Like That Will Hire Pickup Trucks And Troop To Zambia Just To Go And Buy The Cement At Cheaper Price And Resell Them Here In Nigeria For Profits.
Igbo Kwenu!!

You think say you de wise You

winterfell007:


You are not smart. it's very obvious. the major reason why they can't cut their prices is because Dangote controls more than 60% of the market share. he determines the price. That's why he's regarded as a monopolist. Have you ever wondered why Dangote exited from the noodles market, the flour market, water business and the juice business? the answer is simple. they were other serious players in each of the aforementioned business.
Dangote likes to play in a business where he's clearly the market leader so that we can determine the price whenever he likes. This is a huge economic malpractices.
I guess you wouldn't understand this, you aren't that smart afterall

U see, u are stylishly stammering. U say Dangote control 60% of market shares? Then there is no better way to ruin him, than competitors lowering prices. It happened to Gala. Nothing stops the rest from producing a formidable front against him, Many of them were in the business b4 him. But u see, they are enjoyihg it.

This country should have this Price authority platform that can set price balance between the customers and the sellers in NIgeria or else things are going to get worst... i can bet on that...

Dangote doesn't control the government of zambia, the problem is not Dangote here, the problem is the government, whether some people will say Dangote controls the government here or not, the bottom line is Dangote is not the government.