YorubaKing:


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.

Oga cost of production has gone up from fuel to logistics!!! In as much the cost seems to be inflated.

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.

The major raw material for the making of cement is mined here in Nigeria. The machines you mentioned is not always imported and workers to handle the machines are Nigerians.I can’t see any genuine reason why prices should increase by over 100%. Cement was once sold for 5400 few months back and now it’s over #12000.There is no bases to justify the increament.

VeeVeeMyLuv:

Is there any justification to take fuel price from N197 to near N1000 now

Or devalue naira from N452 to N1,490 within 8 months? Or have an inflation rate of 30%?

And you expect price of goods and services not to increase?

Kontinue


The best hotel in Nigeria used to be average of 120k per night

Now it is over 245k

Oya go and tell them to reduce their price na

Ur very.We r our own problem.There is justification for daily increment of cement price

VeeVeeMyLuv:

Is there any justification to take fuel price from N197 to near N1000 now

Or devalue naira from N452 to N1,490 within 8 months? Or have an inflation rate of 30%?

And you expect price of goods and services not to increase?

Kontinue


The best hotel in Nigeria used to be average of 120k per night

Now it is over 245k

Oya go and tell them to reduce their price na

Ur very funny.We r our own problem.There is no justification for daily increment of cement prices

So that money go dey for refinery to kick off

MASTERCHIEF0847:

Why are local manufacturers winding up and foreign ones leaving the country? Cost of production, GSK and PZ left for the same reasons. You don't know the economy of your country is powered by diesel.
If bread bakers and pasta producers are crying of cost of production not to talk of cement manufacturers.
At least i sound funny and not ignorant

Mista-man, what exactly is the point you are making?
Why are you just dancing around many points.??

I thought we were arguing about how the DOLLAR-BASED part of the production-line of cement became the major reason for the increased price of cement in the market..

How come you're noe talking about diesel again??
And even bringing GSK, and PZ, and bread-bakers, and pasta producers into the discussion.??

Did the price of bread and pasta rise to 300% within the last two weeks too (Just the way cement rose 300%)

engrfaruq:


Tell me the 95% raw materials thatvare sourced locally.

Don't we have gypsum deposit in Nigeria?

MASTERCHIEF0847:

Mumu, so because it's produced in Nigeria that has epileptic power supply and because the raw materials are locally sourced then it means the cost of production will not increase?
Limestone is mined from the quarry using heavy equipment that runs on diesel that is selling for over a thousand naira per liter. Others like gypsum are mostly imported and paid for in dollars which the naira cannot keep up with, coupled with the cost of diesel needed to run the cement factory and cost of transportation.... but a slow being like you believes the cement manufacturers just want to punish the masses.
Educate yourself you illiterate...or better still establish your cement factory so you can produce and sell for 1000 naira per 50kg bag. Banza kawaii.

Haba!are u a spokesman for dangote cement?is it today diesel prices becomes #1000 d increase in price margin is so high,that is how during endsars protest when his trucks was burnt he increase price of cement from #2500 to #4000.

Otiwaikuku:



The major raw material for the making of cement is mined here in Nigeria. The machines you mentioned is not always imported and workers to handle the machines are Nigerians.I can’t see any genuine reason why prices should increase by over 100%. Cement was once sold for 5400 few months back and now it’s over #12000.There is no bases to justify the increament.

.70 percent of our Nigeria problems r caused by Nigerians n nt federal government.l bought cement yesterday for 11k.Today it was 12k.D dealer did nt bring new batch of cements.so what r we saying? Raw materials r here

what do you expect!
Removal of fuel subsidy, hike in price of diesel which is sold for #1400/litre depending on area of purchase. a need to increase staff salaries to cushion the drastic effect of subsidy removal...... bad nature of most Nigeria roads which leads to incessant wear and tears. reasons for the rise in cement price like many other products are enormous.

MASTERCHIEF0847:
Increase in cost of production, transportation etc... that is what you get in a dollar-dependent economy.

No.Not related to dollar in anyway.
The problem is that weak naira makes cement cheap to our neighbours,so they want to get their cement from here instead of their home countries.
This sudden demand surge is what is inflation cement price because instead of traders to sell to you with your meagre naira,they rather sell to people coming from outside country.

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 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.

Are u saying Nigerians engineers/technicians cannot service those mining equipment:crushers,kiln,bulldozers,dump trucks,conveyors etc those hoards of expatriates has to be rallied upon.

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.

Thanks for the enlightenment. Many will be heaping the blame and failure of the government on cement producers ignorantly.

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 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.

Are u saying Nigerians engineers/technicians cannot service those mining equipment:crushers,kiln,bulldozers,dump trucks,conveyors etc those hoards of $$$$ guzzling expatriates has to be rallied upon.

Dwaizman:
I once worked in ashaka cement... It's a lengthy essay

Can you write the full essay here please??

MASTERCHIEF0847:

Mumu, so because it's produced in Nigeria that has epileptic power supply and because the raw materials are locally sourced then it means the cost of production will not increase?
Limestone is mined from the quarry using heavy equipment that runs on diesel that is selling for over a thousand naira per liter. Others like gypsum are mostly imported and paid for in dollars which the naira cannot keep up with, coupled with the cost of diesel needed to run the cement factory and cost of transportation.... but a slow being like you believes the cement manufacturers just want to punish the masses.
Educate yourself you illiterate...or better still establish your cement factory so you can produce and sell for 1000 naira per 50kg bag. Banza kawaii.

Dude hope you know gypsum is also produced locally.

bizzibodi:

Are u saying Nigerians engineers/technicians cannot service those mining equipment:crushers,kiln,bulldozers,dump trucks,conveyors etc those hoards of expatriates has to be rallied upon.

Good talk but what of corruption instinct of Nigerians? What did not damaged, he will say it's damaged, given money to buy new ones, he will buy fairly used or stealing some parts and sell to get more money but indirectly ruining the business for the owner.

ufotunang:
..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

How much should fairly be d cost of transportation of a bag of cement by dangote cement to warrant price increase from #5000 to #15000.
Because cost of diesel is still between #1000-#1500.

MASTERCHIEF0847:
Increase in cost of production, transportation etc... that is what you get in a dollar-dependent economy.

No, you're partially wrong. They first created artificial scarcity, a situation where what they supply to the market is less than what people need. Ask yourself, why all of a sudden? Prices of other materials have going up steadily under Tinubu but cement price remained the same until about three or four weeks ago when the supply was reduced.
The major component of cement is limestone and it's abundantly found in Nigeria. How much does it cost a bag of cement to be transported from the factory to the remotest part of Nigeria? Can't be more than N500

MASTERCHIEF0847:

Mumu, so because it's produced in Nigeria that has epileptic power supply and because the raw materials are locally sourced then it means the cost of production will not increase?
Limestone is mined from the quarry using heavy equipment that runs on diesel that is selling for over a thousand naira per liter. Others like gypsum are mostly imported and paid for in dollars which the naira cannot keep up with, coupled with the cost of diesel needed to run the cement factory and cost of transportation.... but a slow being like you believes the cement manufacturers just want to punish the masses.
Educate yourself you illiterate...or better still establish your cement factory so you can produce and sell for 1000 naira per 50kg bag. Banza kawaii.

So, all of these are just happening in the last four weeks, right? You are yarning dust.

Feldie:
all your mouth is government government government. This is why everyone keeps fleecing you because they know you will leave the real culprit and start attacking government that are chilling in Abuja without even the slightest care about you. If Nigerians start boycotting these people hiking prices, they will stop but they know we don't have sense

This is the result of leadership failure. When leaders fail and lose control, followers will do as they like. Goverment is government for a reason, not just to be earning fat salary and allowances and be stealing naira in billions.
Increased production costs can't be used to justify the price of cement surging from 5200 naira to 12000 naira in under six weeks. That's insane!

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

Do you know the meaning of corruption? Clap for yourself!!!!!!

Some guys were caught no long ago exporting cements to neighboring countries. Do you know the implication of this?

And you say is not corruption, so what is it called?

Plain old Nigerian greed. E no pass that one

Cost of production affect everything in a 'dollarized' economy like ours, and the cost of transportation due to increase in diesel price also increase the cost of goods, not just cement. However, the over 200% increase in cement price is grossly caused by scarcity of raw material, reduction in production by some manufacturer and artificially created by distributors influence. For instance company usually announces cut in production few weeks before implementing it. Distributors rather than continue their normal buying and selling will instead buy to hoard hence breeding artificial scarcity of the product, which is actually available but distributors are not selling.
Putting price control in the hand of the distributors, hence both the producers and consumers are at lost. Of cause businessman with stocks in his warehouse will not order for more goods but still won't sell to the customers needing this goods because he wants to make huge profit from it, even when companies are still producing or have started producing at cheaper price. Hence, we have a situation where the manufacturer have goods wasting away in the factory while consumers are out there crying for scarcity and high cost. This will also force manufacturers to halt their production, further creating scarcity, all in favour of the distributors (dealers).
And this is why dangote and other companies are recently making arrangement to have warehouse and stores in towns and cities managed by their marketer and staff. This is to minimize the influence off distributors on price control.

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.??

So there's a thread about this already.

It's very sad how we're going currently in Nigeria.

People will revolt very soon.
This is total madness

BluntCrazeMan:
...
Why are you all talking about DANGOTE.??

Is he the only cement manufacturer in Nigeria??

What also happened to BUA Cement, Elephant Cement, and Lafarge Cement.??

Does it mean that they all planned together and continued raising the price of cement.??

(Even without Dangote’s input).

Very much likely. The supply to the market just went down all of a sudden, within a month. Something that we produce in Nigeria, get from the ground and still export to the neighbouring countries.

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.??

because Dangote the greedy man wants to recoup the dollr loan he took fraudulently from the cbn thru that crook called emefiele.

Na nigerians sweat e go use pay back

Irony1:


Dude hope you know gypsum is also produced locally.

Yes but not enough to satisfy even 20% of the demand for the local market hence the importation.

bizzibodi:

Are u saying Nigerians engineers/technicians cannot service those mining equipment:crushers,kiln,bulldozers,dump trucks,conveyors etc those hoards of $$$$ guzzling expatriates has to be rallied upon.

Yes, they can't because they were never taught theories of such ... and am not kidding.

Corrections:



Do you know the meaning of corruption? Clap for yourself!!!!!!

Some guys were caught no long ago exporting cements to neighboring countries. Do you know the implication of this?

And you say is not corruption, so what is it called?

Its called ''arbitrage'' and its perfectly legal,only if the goverment make it illegal

can a hungry man be running after cement?

engrfaruq:


Tell me the 95% raw materials thatvare sourced locally.

Only gypsum is sourced internationallly, and gypsum only contributes to about 3 -5% of the entire raw materials. Limestone is the chief component of cement manufacturing, and it's traditionally sourced.