jaszplus12:

A particular tribe are not happy because it's not their person that's enjoying the monopoly...if it were... hmmnmm they would have said how no one else can be smarter than them!! Would not have referred to it as wickedness but as business acumen!!

Too many fools abound in Nigeria.

samwash:
Let's face the reality, many factors comes into play in the production industry.
lets compare Zambia to Nigria in terms of
Economic growth
Government policies & tax
Dollar exchange rate
Source of raw materials
Market competivenes
Manpower & Technology
Security, Power etc.
A company that has its factory in two different country ( lets say Nigeria & Benin Republic) will not sell a particular product the same price in both country even if they are neighbors.
Note; the value of the country local currency plays a major role that's were inflation comes into play.

It's very interesting you mentioned Benin republic for comparison.

Dangote is the single major reason that smuggling of rice and spaghetti from Benin republic into Nigeria became big business because he's excessively greedy. When he was importing rice and spaghetti from Benin republic, he used to sell in Nigeria up to 3 times higher than in Benin republic. Then smugglers would bring same commodities into Nigeria and sell cheaper than him!!. This's the major reason smuggling booms across Nigerian borders till today because he gave people other ideas.

Staphylococcus:


You said it all!

Why cant Ibeto sell for One Hundred Naira if he means business. Trying hard to put their woes on Dangote.

Who will buy Dangote if Ibeto sells for One Hundred Naira.

Hate wont make people see the reality. Coupled with jealousy and envy

price war is not the solution. The solution is to liberalize the industry and allow more companies to get involved or allow imports

rhektor:


None of the campaigners will answer this question, it is a targeted campaign against the person of Dangote. BUA, Larfarge, Ibeto etc still sells at the same price but Dangote is the demon lol. If Larfarge and others aren't thieves too they should crash price and watch Dangote crash in the cement industry but no they won't they'll rather pay influencers to push narratives against their competitors. The way we do business in this country shows how wicked a people we are

Rabiu is asking the government to liberalize the industry and allow more companies to get involved.

BluDesk:





You're posting thrash.


Do you know when these guys go to your stock market to raise funds to plug into vacuum spaces in their productive chain they go for hundreds of billions and trillions in Naira.?


This funds are under paid their actual Profitable value in Dividends, used to generate profit and yet commodity prices continue to soar


Thank with your sense na. Make I slap you?

Abeg carry your slap mumuity comot my side.


I don't think greed is the utmost crux for the price difference


It is difficult to run a proper business in Nigeria.


Am not discouraging anyone, but it is currently our ( a Nigeria's) truth.


If he had the opportunity to utilize good roads, freight trains, minimal road blocks, and clear business laws; then that would make it easy to assess the true cost of profit or greed.

Permesso:


He's looking for quick money to invest and finish his Gigantic refinery in Lagos. He's as greedy as Nnewi man. Ibeto should come out and do his justice, but his no where to be found. Can you imagine 1500 in Zambia while Nigeria where it's produced and soursed is unattainable in price.

Ibeto is a coward. He makes no noise or protest. Atleast Rabiu has the sense to stand up for himself in the media and the courts, Ibeto prefers to beg behind the scenes like a dumbass. Weak pitiful man.

Aconomist:


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

But we were talking about net profit margin.

I wouldn't expect anything different considering the metric you're using, EBITDA margin. Dangot has most of his assets (fixed assets and financial assets) in Nigeria. If the cost of operation is higher (as expected), it's definitely cause of the asset related expenses like depreciation, amortization, debts, interest payments, etc. and taxes. All these would definitely his reduce net profit and bring it closer to those of other countries where cost is mostly COGS and admin expenses.

However, the metric you are using is EBITDA margin which does not put all these assets related expenses into consideration thus creating a wide gap between the location with more assets and those with fewer assets. EBITDA does not even consider the tax structures in both countries. It says nothing about the debt capitalization of the companies. It's an overly simplified metric better suited for comparing companies with similar operating conditions. Companies only make their EBITDA public to attract investors while hiding the real deal, net profit. That's called window dressing.

Dangote's net profit in Nigeria might be higher as his price definitely goes up with demand while higher productin output also reduces his cost of production (economy of scale). But EBITDA margin only exaggerates that by hiding costs that are definitely higher in Nigeria. Of course, I cannot say for sure, but I don't think the net profits would be this far apart. And like I said earlier, the mere currency conversion done by the OP does not really say much.

WoundedLamb:


But we were talking about net profit margin.

I wouldn't expect anything different considering the metric you're using, EBITDA margin. Dangot has most of his assets (fixed assets and financial assets) in Nigeria. If the cost of operation is higher (as expected), it's definitely cause of the asset related expenses like depreciation, amortization, debts, interest payments, etc. and taxes. All these would definitely his reduce net profit and bring it closer to those of other countries where cost is mostly COGS and admin expenses.

However, the metric you are using is EBITDA margin which does not put all these assets related expenses into consideration thus creating a wide gap between the location with more assets and those with fewer assets. EBITDA does not even consider the tax structures in both countries. It says nothing about the debt capitalization of the companies. It's an overly simplified metric better suited for comparing companies with similar operating conditions. Companies only make their EBITDA public to attract investors while hiding the real deal, net profit. That's called window dressing.

Dangote's net profit in Nigeria might be higher as his price definitely goes up with demand while higher productin output also reduces his cost of production (economy of scale). But EBITDA margin only exaggerates that by hiding costs that are definitely higher in Nigeria. Of course, I cannot say for sure, but I don't think the net profits would be this far apart. And like I said earlier, the mere currency conversion done by the OP does not really say much.

The cost of operation in Nigeria is not higher -- get this through your mushy Nigerian brain . In 2020, Dangote generated total revenue of 1,034,196 million naira and net profit before tax of 373,310 million naira. That's a 36% margin (more than even the operating profit margin of a Ferrari), and note that COMBINES the Nigerian segment with the less profitable Pan Africa segment.

If we looked at the Nigeria segment alone, its net profit margin before tax is still likely above 50%, which means he is selling for double his cost of production, even accounting for depreciation, amortization, and interest expense. Cement net profit margins in the U.S hover between 1% and 5% for comparison. Sometimes I wonder how I was cursed to share a nationality with you people. All the information is available, but you refuse to see reason.

Aconomist:
The cost of operation in Nigeria is not higher -- get this through your mushy Nigerian brain . In 2020, Dangote generated total revenue of 1,034,196 million naira and net profit before tax of 373,310 million naira. That's a 36% margin (double the profit margin of a Ferrari), and note that COMBINES the Nigerian segment with the less profitable Pan Africa segment.

If we looked at the Nigeria segment alone, its net profit margin before tax is still likely above 50%, which means he is selling for double his cost of production, even accounting for depreciation, amortization, and interest expense. Cement net profit margins in the U.S hover between 1% and 5% for comparison. Sometimes I wonder how I was cursed to share a nationality with you apes. All the information is available, but you refuse to see reason.

@bolded: Ok, sorry, that's the end. I don't really engage in NL gutter chats. I thought I was having a productive conversation with an enlightened fellow.

Enjoy your day/night wherever you are.

WoundedLamb:


@bolded: Ok, sorry, that's the end. I don't really engage in NL gutter chats. I thought I was having a productive conversation an enlightened fellow.

Enjoy your day/night wherever you are.

The insults were unnecessarily. But I felt the need to emphasize that this problem is beyond the argument stage. It's blatant. The only reasonable discussion should be on how best to bring these margins down.

WoundedLamb:


@bolded: Ok, sorry, that's the end. I don't really engage in NL gutter chats. I thought I was having a productive conversation an enlightened fellow.

Enjoy your day/night wherever you are.

Dangote is selling cement at higher margins than Rolls Royce and Ferrari. This shouldn't be something a reasonable person defends.

samwash:
Let's face the reality, many factors comes into play in the production industry.
lets compare Zambia to Nigria in terms of
Economic growth
Government policies & tax
Dollar exchange rate
Source of raw materials
Market competivenes
Manpower & Technology
Security, Power etc.
A company that has its factory in two different country ( lets say Nigeria & Benin Republic) will not sell a particular product the same price in both country even if they are neighbors.
Note; the value of the country local currency plays a major role that's were inflation comes into play.

not everyone is intellectually sound.

Aconomist:
Dangote is selling cement at higher margins than Rolls Royce and Ferrari. This shouldn't be something a reasonable person defends.

You still sound arrogance and primitive.

chamboy:
You still sound arrogance and primitive.

Do I think most Nigerians are hopeless idiots? Absolutely. That's why the country is such a disaster.

elGenius:
These children of hate, perdition and envy.

I think it's high time every one begin to stand up to this lunatics.

we've been treating them like kids, letting them have there ways, the pampering as entered there head, we need to deflate there ego, remind them there irrelevance .

they bring there entire generations from there great grand parents to how regions and still go back to tell there people that we are evil and weaked, and that they are being attacked yet they keep coming.

we can't keep allowing these nonentities to insult and ridicule us, enough

Who are the nonentities if I may ask? You left the topic of the day only to come attack the preacher for no reason. You are despicting the attitude from a typical oppressor and likely from the Northern Hesmispere characteriezed with terrorrism, kidnapping and born to rule mentality.

You guys are just lucky, but I promise you, we are warming up and soon we will keep you guys tamed and silent for ever.

I and some others just need sponsorship from well-meaning Nigerians both home and abroad to clear you motherfuckers outta this contraception.

Look, you are nothing but a mere illiterate just opportuned. You guys should never be a part of the south ..

chamboy:
You still sound arrogance and primitive.

Get the fuuuck outta here. Who are you sef?

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

This guy is not normal he is under dangote payroll

Aconomist:
price war is not the solution. The solution is to liberalize the industry and allow more companies to get involved or allow imports

Don't argue again with those Scumbags. They aint worth your time.

I read Banking & Finance(in it, we have Economics[micro & macro]) but unfortunately, those you are lecturing here don't know a dim of economics & price mechanism.

Even the so-called CBN are helpless and clueless. Also, our politicians and leaders don't want anything good for the country and hence, all these.

Bleep! Where is the free market system? Why allow only an hausa man as a monopoly of all essentials?

I have been expecting the CBN & FG to take the last action or option via controlling prices of essentials but, i am wrong.

Aconomist:
When people ask me why I don't invest in Nigeria, remember this thread and responses like this. Nigerians are addicted to stagnation and justify their own demise -- only a fool would put his hard earned capital into a nation of monkeys like this.

Cement prices around the world range from $3 to $6 while Dangote is selling for the equivalent of $11 for a profit margin of 60% in Nigeria compared to an industry average profit margin of 5% to 12%. He is able to charge these high prices because of low competition -- he kicked out competitors by hoarding limestone resources and convincing the federal government to ban imports.

According to Rabiu of BUA Group, Nigeria's real cost of cement production is the lowest in the world. The high prices are because of price gouging and monopolistic behavior from Dangote.

God will bless people like you.
Too many Monkeys in this Nigeria, they continue to hail their oppressors for God knows why?

elGenius:
These children of hate, perdition and envy.

I think it's high time every one begin to stand up to this lunatics.

we've been treating them like kids, letting them have there ways, the pampering as entered there head, we need to deflate there ego, remind them there irrelevance .

they bring there entire generations from there great grand parents to how regions and still go back to tell there people that we are evil and weaked, and that they are being attacked yet they keep coming.

we can't keep allowing these nonentities to insult and ridicule us, enough

I repeat again, you are a big fool.

You deserve this...

Dangot and exploitation are like 5&6 while most Nigerians think the guy was doing us favor, I am imaging what is going to happened when his done with his refinery,May God help Nigerian.

CSTRR:

This is a stupid argument.

Dangote is the market leader. His prices determine the prices of other Brand and he knows it.
That is why he is not bothered.

If dangote sells cheap, others will sell cheap.

Stop making stupid arguments.

Your own analogy is even worse. So if he sells higher, others would be forced to sell higher?? Remember the Pepsi and Coca-Cola brand war, coke was previously selling at a higher price tag than Pepsi, but pepsi maintained its low prices despite the fact that Coca-Cola was the bigger brand then. Eventually coke had to force down its prices at par with pepsi due to heavy competition and fear of losing the market share to pepsi. If dangote sells higher, nothing stops the others from selling cheap. In fact, it would force dangote to also sell cheap eventually.

Can you provide any valid link to back your 28GB data claim?

DoctorStylish:
If Dangote wasn’t among the richest men in the world all these trivial criticism won’t exist . Dangote isn’t Nigerias Problem lol . I really don’t know where the hate is coming from I mean . Such a Frivolous Criticism.
I was also naive but not to this level then when I discovered that same Airtel that sells 1.5GB for #1500 in Nigeria ,Sells 28GB with extra benefits for #1500 in India . And then I had to do some deep finding , My Eyes Opened .
Lol No Sentiments

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 has many govt officials under him

Which state of the economy? Cement that is locally produced. Is it right for criminals (govt officials) to be under him milking Nigerians? The Nigerian situation is pure wickedness.

WoundedLamb:
Currency conversion could actually be misleading. What is the cost of production in Zambia? What is the profit margin over there? He might be using the same costing sheet in both countries. I don't think it's intelligent to think the final prices must be the same. Just saying...

Dangote runs a monopolistic market thereby forcing the hands of other competitors .
Let me give you an example - you have cornered 60 percent of sachet water market in Lagos . All other producer of sachet water in lagos share the remaining 40 percent . Cost of producing a sachet is 6 naira . A fair Selling price is 10 naira . However since you have 60 percent of the market , you can afford to bring down your price to 7 naira or 6.5 naira and your competitors can’t survive on that margin . This makes you the major market price determinant . If you decide to sell at 15 naira ,the competition will most likely follow suit (they will make more money that way) .
But if the competitors decide to defy you , you can decide to sell at 6.5 naira and kill off their market share .
That is what Dangote is doing . I have a friend that works with larfarge and he said from their analysis , they can sell PROFITABLY at 1800 per bag but they can’t defy the market leader especially if he is inadvertently making you money . Dangote is the enemy of the people . He is also a huge campaign donor to all the major political parties . So no matter who wins , he gets to monopolize the market

Aconomist:
Do I think most Nigerians are hopeless idiots? Absolutely. That's why the country is such a disaster.

Most Nigerians find the truth to be the usual bitter taste so they run away from it. Nobody on Earth can convince me that selling cement even at 2000 naira per bag in Nigeria is justifiable. Not to talk of the current #3900 to #4500 per bag. That is gross wickedness!, it is called greed at its finest. I can't support such nonsense. It is a 'deliberate ignorance'.

Godisgreatest1:


Most Nigerians find the truth to be the usual bitter taste so they run away from it. Nobody on Earth can convince me that selling cement even at 2000 naira per bag in Nigeria is justifiable. Not to talk of the current #3900 to #4500 per bag. That is gross wickedness!, it is called greed at its finest. I can't support such nonsense. It is a 'deliberate ignorance'.

And he will do same with his refinery . This is why a whole country can’t have a fully functional refinery and APC in its stark madness will be touting a private refinery as our saviour . Is Dangote richer than Nigeria ? No. the idea is help him monopolize the market by keeping the national refineries moribund

Both in ghana too, and still much more quality than nigeria own ooo

jaszplus12:

When you can spell correctly....then you too should assess your level of depravity...

zombies are so mentally retarded that they never knw what typographical errors means

On this matter of Dangote or any other big businessmen, I don't have to do any research again to prove myself right. This is because I have made my conclusion that; if I a see a big and real businessman and a politician, I WILL KILL THE BUSINESSMAN MORE THAN 1 MILLION TIMES BEFORE I KILL THE POLITICIAN. Real Businessmen are the worst people because they will tell you they are not into politics, but they are full involved in disguise, because politics is one of their instruments to get what they need.
In fact, I believe that all our government officials are not wicked as politicians, but they are rather wicked and covetous because they are BUSINESSMEN.

Aconomist:
Dangote is selling cement for 55 Kwatcha (1150 naira) in Zambia. But in Nigeria, the same cement is going for 3,000 to 5,000 naira. Dangote is the biggest problem in Nigeria. I have never seen such a wicked excuse for a human being in my live. EndSARS is over. It's time to start END DANGOTE.

https://zambiareports.com/2021/03/31/78130/

WHAT’S DANGOTE CEMENT’S COST OF PRODUCTION IN ZAMBIA?

Sadly, the OP just like many of Nigeria’s chattering class impart more heat than light...
And, with Dangote, there’s also an element of ETHNIC HATRED involved (if we’re to be honest). SMH
>

Godisgreatest1:
Most Nigerians find the truth to be the usual bitter taste so they run away from it. Nobody on Earth can convince me that selling cement even at 2000 naira per bag in Nigeria is justifiable. Not to talk of the current #3900 to #4500 per bag. That is gross wickedness!, it is called greed at its finest. I can't support such nonsense. It is a 'deliberate ignorance'.

So why are the other cement producers NOT selling for less than N2000?
Even Lafarge, the world’s BIGGEST producer (operating in Nigeria since 1950s/60s), does not for N2000.

ANYBODY can go into the cement production business and sell at whatever price they want...
Nigerians are used to getting fuel and electricity BELOW cost, and think that they are entitled to cheap everything.

Buying cement is not a necessity nor by force...
You can use burnt bricks, or even mud and sticks (or zinc) if you think cement is overpriced.
>