₦airaland Forum

BodyCount:
Dangote is just a very GREEDY person. Same thing with BUA.


The most annoying evil thing he's even doing is selling more expensively in Nigeria, than the price he sells to neighbouring African countries.
But trust a Nigerian, he'll still make excuses and justify his evil action.

SEE PETROL TOO, JUST BECAUSE USA-ISRAEL AND IRAN IS FIGHTING AND IN LESS THAN ONE WEEK, PRICE OF FUEL IS GOING TO DOUBLE ALREADY.
WHAT'S SUPPOSED TO CONCERN NIGERIA (BIGGEST PROBLEM OF OIL IN AFRICA) WITH WHAT IS HAPPENING IN THE MIDDLE EAST?

really? The price from Dangote may be much lower.

serious concern i had to put some construction on hold now

How much is the price of a bag of cement in Cotonou for comparison?

BioData45:
If your favorite win, what will he do differently?
This is the reason this country might not get better anytime soon. People who are colleagues form both government and opposition and you guys cheer them up.
I hope you all messier win so we all can see no difference in these people.

the one we have now..what has he done..this is his first tenure o..dude am no opposition or have a messiah..I just want good governance..is that too hard to ask

It's not all true with the OP narration.

The last time cement was 7k to 8k was 2024.... Throught last year, Cement was revolving around 10k to 11k till this January.....cement was never 7/8k last year..... someone should confirm please if you are into building construction?

henkey:
Cement price is not supposed to be above #7 to 8k in Nigeria, because most of the Raw Materials are locally Sourced.
If the price Continues to increase, I advise the Federal Govt to allow our Importers to venture into the Importation of Cement. And see the price crash drastically.

And naira appreciated against the dollar ooo. So why the price hike?
Greedy monopolists and the government is caged due to interest. Na them dey support election and so needs to be compensated by banning and handing over a monopolistic market to them.
Soon tenants will cry more.

Dricker:
the one we have now..what has he done..this is his first tenure o..dude am no opposition or have a messiah..I just want good governance..is that too hard to ask

I got your point now.

Focusmind:
This thing is bad - we are about to do some renovation and prices have all gone up.

Some traders are quoting N13k for Dangote, when we budgeted N11800

Same with iron rods and other construction materials.

Plaster boards and POP are something else.

Cement that was just 10000 less than 3 weeks ago. Imagine jumping to 12k straight. In 2020 multiple building construction used to go on in my street, since 2023 all of them has stopped & no new building project has started. In 2020 when I wanted to build, cement moved from I think 1800 to 2200, I was suggesting we should wait for price to drop, my engineer said we shouldn't wait, that whatever goes up in this country never comes down, see where the price is today.

From one thousand something when APC took over the govt to 15k now and still morons no see anything wrong

nairalanda1:
How do you think they power the factories that make the cement then?

Then transport costs...remember that diesel has been higher than petrol since 2015 at least...much higher. Diesel would also have shot up with the recent increases (that's why government is not doing well by not being more aggresive on railways)

You're wrong.

Energy cost account for just about 1% of cement factories total cost of production. Other cists such as personnel and raw materials take the bigger chuck. And those other costs are quite stable and do not require constant price increase. Last year, Dangote Cement company's EBITDA margin was about 50% and tax has stayed the same at 30% not even to mention that Dangote is one of the major beneficiaries of tax holidays.

On transportation, Dangote now uses CNG trucks.

Dangote is just exploiting Nigeria. That's one of the downsides of monopoly. It's a shame Nigerians are defending it ( Worst off is you always defending price increments).

When the news of dangote paying $1B last month to Tinubu as tax and agbados were rejoicing and shaming people that spoke against tax, i don't know if they think dangote no get sense or what. This is just bit of what will happen.

Basically we are practically DOOMED!!!...

Nah next year una go understand this lyrics.

Dbegining:
You're wrong.

Energy cost account for just about 1% of cement factories total cost of production. Other cists such as personnel and raw materials take the bigger chuck. And those other costs are quite stable and do not require constant price increase. Last year, Dangote Cement company's EBITDA margin was about 50% and tax has stayed the same at 30% not even to mention that Dangote is one of the major beneficiaries of tax holidays.

On transportation, Dangote now uses CNG trucks.

Dangote is just exploiting Nigeria. That's one of the downsides of monopoly. It's a shame Nigerians are defending it ( Worst off is you always defending price increments).

Sigh

Cement factories energy costs amount 40-60 percent of total production costs

Dangote cement energy costs are 44-45% of total production costs.

It's not as low as one percent.

In 2024 I still bought cement 4500..

Dbegining:
You're wrong.

Energy cost account for just about 1% of cement factories total cost of production. Other cists such as personnel and raw materials take the bigger chuck. And those other costs are quite stable and do not require constant price increase. Last year, Dangote Cement company's EBITDA margin was about 50% and tax has stayed the same at 30% not even to mention that Dangote is one of the major beneficiaries of tax holidays.

On transportation, Dangote now uses CNG trucks.

Dangote is just exploiting Nigeria. That's one of the downsides of monopoly. It's a shame Nigerians are defending it ( Worst off is you always defending price increments).

TO back up my comments

In Nigeria, producing a tonne of cement requires at least 105KwH of electricity, contributing to 40-50% of cement production costs. Due to insufficient national grid capacity, cement manufacturers must use natural gas to build their own power plants. Distribution costs also increase due to using diesel-powered trucks for transporting raw materials.

The unit fuel cost for cement production in Nigeria is estimated at $30 per tonne, which is costly compared to China—the world's biggest cement producer—at $6 per tonne. For context, in 2023, Dangote, Lafarge, and BUA spent ₦598.137 billion on fuel and power, a 42.45% increase from 2022.


Don't call me a liar again.

Inflation....Inflation....Inflation....oh.,..Inflation.
In the next life when you hear inflation...you run....you hide,....you fight...Inflatioooon....

What really shocks me is that Nigerians are shocked at rapid fire price increases left, right, centre.

We shouted out loud, wailed endlessly on this media space from Day 1 of 'Subsidy is Gone'. That the government had better have a solid plan to fight inflation or else it has signed the death warrant if it's legacy.

Three years after, three years.... three years... inflation remains double digit, hovering around the early 20's if you ask me. Who as an individual or what as a corporate entity can out-produce those kind of figures.

Think about it. For Dangote and the cement cartel to maintain prices at BT (before Tinubu regime) a bag of cement will have to shrink to between 15 kilograms and 20 kilograms. That is the reality.

The primary cause/solution to this problem is government spending. The public has reformed. Most individuals have cut wasteful spending. Corporate entities are more efficient that ever with their resources. The big elephant sitting on, stoking inflation and choking the economy remains government and their reckless wastage on everything but the factors that fight inflation.

You will have thought three years after subsidy is gone there will be massive investment in the energy sector to drive down prices through competition but alas we have moved form one public sector monopoly (NNPC), to a private sector monopoly in Dangote refinery, meaning that prices will never fall.

You will have thought that three years after, there will be massive investment in the transportation sector so that the high cost of transporting goods and products can be met with the low cost, high efficiency of rail transport.

You will have thought that three years after, the high cost of running industries on alternative power aka generators and the attendant throughput to high cost of goods will have been met with massive investment in power generation so that energy costs can start to come down.

Sort out refining, rail transport and power production and you will have inflation in check. We are not even talking about investment in industry which this government has not even started to contemplate.

nairalanda1:
TO back up my comments

In Nigeria, producing a tonne of cement requires at least 105KwH of electricity, contributing to 40-50% of cement production costs. Due to insufficient national grid capacity, cement manufacturers must use natural gas to build their own power plants. Distribution costs also increase due to using diesel-powered trucks for transporting raw materials.

The unit fuel cost for cement production in Nigeria is estimated at $30 per tonne, which is costly compared to China—the world's biggest cement producer—at $6 per tonne. For context, in 2023, Dangote, Lafarge, and BUA spent ₦598.137 billion on fuel and power, a 42.45% increase from 2022.


Don't call me a liar again.

Quite unfortunate that you're out here defending a company that made over 500 Billion Naira in profit alone last year.


To correct my error,
Cost of sales itself is roughly 46% of revenue (since gross margin is ~54%). So fuel and power as a proportion of total revenue is roughly ~20% of revenue.

Even if fuel costs doubled to N2,000 per litre it would only add about 20% to the cost base, not 20% to the final price because Dangote's cost base is less than half its revenue.


A 50% surge in fuel costs would translate to roughly a 10% increase in the cost to produce, which on a 54% gross margin could be absorbed without any price increase, let alone an abrupt one.

I'm talking data here. Dangote can absorb a 20% temporary increase in fuel price (not to mention that cost of NEPA light which he also uses in his factory is stable.) without increasing cement prices immediately!

But I actually expect this from you. Your strong belief is that increase in price will solve all Nigeria's problems. For a country that about 95% of individuals have less than N500,000 in their account, your mindset is not wise.

I hope you're a billionaire. I really hope so cause it will at least make a little sense as to why you reason like this.

Dbegining:
Quite unfortunate that you're out here defending a company that made over 500 Billion Naira in profit alone last year.


To correct my error,
Cost of sales itself is roughly 46% of revenue (since gross margin is ~54%). So fuel and power as a proportion of total revenue is roughly ~20% of revenue.

Even if fuel costs doubled to N2,000 per litre it would only add about 20% to the cost base, not 20% to the final price because Dangote's cost base is less than half its revenue.


A 50% surge in fuel costs would translate to roughly a 10% increase in the cost to produce, which on a 54% gross margin could be absorbed without any price increase, let alone an abrupt one.

I'm talking data here. Dangote can absorb a 20% temporary increase in fuel price (not to mention that cost of NEPA light which he also uses in his factory is stable.) without increasing cement prices immediately!

But I actually expect this from you. Your strong belief is that increase in price will solve all Nigeria's problems. For a country that about 95% of individuals have less than N500,000 in their account, your mindset is not wise.

I hope you're a billionaire. I really hope so cause it will at least make a little sense as to why you reason like this.

Sorry man, but I've proven you wrong.

Accept you are wrong and move on. Thanks.

As Tinubu supporter, go to any dealership, wave your APC card they will sell the cement 1500 naira to you for being APC member

But dangote said that why the price of cement is going up is because of the high tax is paying to FG.
If the reduce the tax they are collecting from dangote, the price of cement will come down.

muyico:
Go Soon reach 20k!
War always caused inflation

Yes for the warring parties and dependent nations on one or more of the warring parties involved.

If Nigeria were self sufficient this wouldn't affect us and may even provide opportunities to make bigger profit of our exports less internal demand at best, at worst mitigated effects.

nairalanda1:
They probably are paying their labourers a lot more money right now...tinubu economy things. Then tax at both federal and state level.

And who told you they are getting the limestone cheap? I doubt.

Why is it cheaper in neighboring countries though compared to Nigeria where it is produced?. .

TruthHurts1:
https://tribuneonlineng.com/shockwaves-across-construction-sector-as-cement-sells-between-n11500-and-n15000-per-bag/?utm_source=&utm_medium=twitter

All thanks to tinubu economy reform

Welcome to the capital of Capitalism in Africa. These whole system continue to crumble because of the disunity amongst the people.

There are people who will not mind the price and they will go ahead and call others who cannot afford this cement poor and broke.

God will deliver Nigeria

A nation ruled by an idiot and supported by fools!

All the businesses owned by Dangote are all working towards exploiting and extorting Nigerians.

20k ...here we go