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Nairaland Forum / Nairaland / General / Business / Dangote Is Selling Cement For 1,150 Naira In Zambia (66021 Views)
Sani Dangote Is Dead! Vice President, Dangote Group Dies / Dangote Is Selling Dangote Flour Mills For N130 Billion ($361.11 Million) / Why Aliko Dangote Is Bad For Nigeria - Feyi Fawehinmi (2) (3) (4)
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Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by poseidon12: 12:31am On Apr 07, 2021 |
jaszplus12: Too many fools abound in Nigeria. |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by musicwriter(m): 12:45am On Apr 07, 2021 |
samwash: 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. |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 12:49am On Apr 07, 2021 |
Staphylococcus:price war is not the solution. The solution is to liberalize the industry and allow more companies to get involved or allow imports 3 Likes |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 12:51am On Apr 07, 2021 |
rhektor:Rabiu is asking the government to liberalize the industry and allow more companies to get involved. |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by vioment: 12:54am On Apr 07, 2021 |
BluDesk: 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. |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 12:55am On Apr 07, 2021 |
Permesso: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. 3 Likes 1 Share |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by WoundedLamb: 1:19am On Apr 07, 2021 |
Aconomist: 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. 1 Like |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 1:50am On Apr 07, 2021 |
WoundedLamb: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. 2 Likes 1 Share
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Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by WoundedLamb: 2:08am On Apr 07, 2021 |
Aconomist: @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. 5 Likes |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 2:18am On Apr 07, 2021 |
WoundedLamb: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. 1 Like 1 Share |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 2:21am On Apr 07, 2021 |
WoundedLamb:Dangote is selling cement at higher margins than Rolls Royce and Ferrari. This shouldn't be something a reasonable person defends. 3 Likes 1 Share |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by chamboy(m): 2:30am On Apr 07, 2021 |
samwash:not everyone is intellectually sound. |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by chamboy(m): 2:34am On Apr 07, 2021 |
Aconomist:You still sound arrogance and primitive. 1 Like |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 2:36am On Apr 07, 2021 |
chamboy:Do I think most Nigerians are hopeless idiots? Absolutely. That's why the country is such a disaster. 3 Likes 1 Share |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Kate06(m): 2:43am On Apr 07, 2021 |
elGenius: 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 .. |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Kate06(m): 2:46am On Apr 07, 2021 |
chamboy: Get the fuuuck outta here. Who are you sef? 2 Likes 1 Share |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Coronavirus1: 2:46am On Apr 07, 2021 |
ayterajah:This guy is not normal he is under dangote payroll |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Kate06(m): 2:56am On Apr 07, 2021 |
Aconomist: 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. 3 Likes 1 Share |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by dam4sam: 3:02am On Apr 07, 2021 |
Aconomist: God will bless people like you. Too many Monkeys in this Nigeria, they continue to hail their oppressors for God knows why? 4 Likes |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Kate06(m): 3:07am On Apr 07, 2021 |
elGenius: I repeat again, you are a big fool. You deserve this...
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Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by mukthar2000(m): 3:15am On Apr 07, 2021 |
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. 2 Likes |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by ringi82(m): 3:22am On Apr 07, 2021 |
CSTRR: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. 5 Likes |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by madridguy(m): 3:48am On Apr 07, 2021 |
Can you provide any valid link to back your 28GB data claim? DoctorStylish: |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by gbagyiza: 4:12am On Apr 07, 2021 |
ayterajah: 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. |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by blaise26abj(m): 4:49am On Apr 07, 2021 |
WoundedLamb: 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 6 Likes 2 Shares |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Godisgreatest1: 4:53am On Apr 07, 2021 |
Aconomist: 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'. 5 Likes 1 Share |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by blaise26abj(m): 5:02am On Apr 07, 2021 |
Godisgreatest1: 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 1 Like 1 Share |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Ashinze: 5:33am On Apr 07, 2021 |
Both in ghana too, and still much more quality than nigeria own ooo |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by aminusodiq(m): 5:35am On Apr 07, 2021 |
jaszplus12:zombies are so mentally retarded that they never knw what typographical errors means |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Frankhad: 5:59am On Apr 07, 2021 |
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. 2 Likes 1 Share |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by 9jaRealist: 6:20am On Apr 07, 2021 |
Aconomist: 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 > 1 Like |
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by 9jaRealist: 6:26am On Apr 07, 2021 |
Godisgreatest1: 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. > |
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