see better person wey some yeye people dey form say dem know mathematical equation wey long pass. i hail dangote oo.

tessylove2:
Money is good!


www.gistwithtessy.com

Money is neither good or bad just like the sun or rainfall. It can build or destroy .What matters is what money is used for.Billions of oil dollars if not trillions hae come into Nigeria over the years it has not been "good"

working towards b d richest in d world. God bless me

vimi:


Correct the bold letter n we will talk

typo Bro

Bur do you reason like this always ?

#Hard_works pays!!! #Oluwa Bless My hustle!!!

EbolaParasite:


Read my comment again. This time, Slooooooooooowly. Once you are done, rephrase your question

I understood your post very well and my question was, just incase epileptic power supply is the reason Dangote refrains from putting up enough of such projects in naija, how does he then as a businessman help the government of naija in generating the needed power as an investment?

Chosen1984:
Wise countries are reaping from Nigeria sweat...
Am sure a bag of cement be cheaper there than Nigeria.

Having Dangote a cement Manufacturer a Nigerian and in Nigeria. We are meant to get a bag of cement at a Maximum of N1000.
the price of a bag of cement in the world today is about N900.
but due to bureaucracies, wicked leaders and corruption we pay more than 2wice the price .
i hope president Buhari tackles dis once and for all

1.) Final price is dependent on cost of production - the other countries you compare Nigeria to, probably have steady power supply and trains or better means of transport. Do you realize that all those Dangote trucks that ship bagged cement from the mills add to the final cost? In other countries, they utilize sea ports, barges and/or rail.
2.) They are not reaping from any yeye sweat. Dangote is not going there to do favors. He is out there to make PROFIT. If it were cheaper and cost effective for him to build another one in Lagos or Damaturu or wherever in Nigeria, he would have. Obajana cement in Kogi cost over 600million to commission when it was done. I think the final figure is almost 1 billion due to power generation.
3.) You do realize that there are loans and investors involved right? Imagine building another 600 million plant in Nigeria and you tell the banks that you want to sell at N900 so that you can help the people. The first question is : when will you be able to pay back the loan? There are thousands of importers that just bag cement and sell. 900 naira is not feasible in Nigeria right now. Maybe ina few years when the cost of production, plant acquisition etc comes down

Congratulations Sir...I shall be rich in God's own time in Jesus Name...Amen.

vimi:
Dangote, a man whose life was changed with just 500k by his uncle

$500k or N500k in the late sixties and early seventies is like $500million or N5billion today when you factor in the inflation rate over the years.

If I get that kind of money today I will be richer that Dangote in 20years time. Its a Fact.

vimi:


Hia Asin ii don't know Dantata abii who else contributed? Take tym o

where u there when they gave him th 500K

RedBenson:


I understood your post very well and my question was, just incase epileptic power supply is the reason Dangote refrains from putting up enough of such projects in naija, how does he then as a businessman help the government of naija in generating the needed power as an investment?

You want him to help Nigeria generate power? Are you serious? No Business man helps anybody. A business man sets up a business because he INTENDS to profit.

By the way, you do realize power issue in Nigeria is a long thing right? If you generate a certain MW (I don't recall now) you have to supply the national grid. So you can't just say, okay, hey , I am the messiah, I want to solve Nigeria's problem.

Nigeria needs to solve its own power problem by providing an enabling environment. IF power is fully deregulated whereby anybody can generate and distribute, trust me, several investors will flock in because they will make profit. If you are expecting a PRIVATE BUSINESS man to help your country and run a LOSS, you are on a long thing

tonychristopher:


typo Bro

Bur do you reason like this always ?

I don buy fight again, meanwhile 70's or now as a typical hausa man he still tried cos most of his type will fail terribly with even trillions

EbolaParasite:


1.) Final price is dependent on cost of production - the other countries you compare Nigeria to, probably have steady power supply and trains or better means of transport. Do you realize that all those Dangote trucks that ship bagged cement from the mills add to the final cost? In other countries, they utilize sea ports, barges and/or rail.
2.) They are not reaping from any yeye sweat. Dangote is not going there to do favors. He is out there to make PROFIT. If it were cheaper and cost effective for him to build another one in Lagos or Damaturu or wherever in Nigeria, he would have. Obajana cement in Kogi cost over 600million to commission when it was done. I think the final figure is almost 1 billion due to power generation.
3.) You do realize that there are loans and investors involved right? Imagine building another 600 million plant in Nigeria and you tell the banks that you want to sell at N900 so that you can help the people. The first question is : when will you be able to pay back the loan? There are thousands of importers that just bag cement and sell. 900 naira is not feasible in Nigeria right now. Maybe ina few years when the cost of production, plant acquisition etc comes down

I would argue that government should allow contractors involved in government projects to import their own cement if they can get it cheaper if that translates to lower costs

My brother if i am allowed to import cements and to sell in Nigeria. I would sell far lower than wat is being sold in Nigeria today and would make my sweet profits.

EbolaParasite:


1.) Final price is dependent on cost of production - the other countries you compare Nigeria to, probably have steady power supply and trains or better means of transport. Do you realize that all those Dangote trucks that ship bagged cement from the mills add to the final cost? In other countries, they utilize sea ports, barges and/or rail.
2.) They are not reaping from any yeye sweat. Dangote is not going there to do favors. He is out there to make PROFIT. If it were cheaper and cost effective for him to build another one in Lagos or Damaturu or wherever in Nigeria, he would have. Obajana cement in Kogi cost over 600million to commission when it was done. I think the final figure is almost 1 billion due to power generation.
3.) You do realize that there are loans and investors involved right? Imagine building another 600 million plant in Nigeria and you tell the banks that you want to sell at N900 so that you can help the people. The first question is : when will you be able to pay back the loan? There are thousands of importers that just bag cement and sell. 900 naira is not feasible in Nigeria right now. Maybe ina few years when the cost of production, plant acquisition etc comes down

jomoh:


$500k or N500k in the late sixties and early seventies is like $500million or N5billion today when you factor in the inflation rate over the years.

If I get that kind of money today I will be richer that Dangote in 20years time. Its a Fact.

Economist iin the building!! Oya clap for yasef!

Noted

vimi:


I don buy fight again, meanwhile 70's or now as a typical hausa man he still tried cos most of his type will fail terribly with even trillions

omonnakoda:

I would argue that government should allow contractors involved in government projects to import their own cement if they can get it cheaper if that translates to lower costs

If they do that then do you think anyone will BUILD a plant in Nigeria when they know they will run at a loss?
If people import and sell cement at 1000 naira and I build a plant that produces say 6000 tonnes a day or so and I need at least a price of 1500 naira to break even. Do you think I will bother investing? Add in inflation, ridiculous bank loan interest rates and uncertainty associated with the Nigerian environment (bomb blasts etc).

The only way to bring prices down is to encourage local manufacturing by hindering bagged cement importers. The short time result is high prices but on the long run, the price will come down.

wow...incredible.hardworks pays....I belive I gonna make in JN

Chosen1984:
My brother if i am allowed to import cements and to sell in Nigeria. I would sell far lower than wat is being sold in Nigeria today and would make my sweet profits.

Again, how is that beneficial or how will that encourage local manufacturing?
You may import at lower prices today but eventually the prices will go up if the price at your source increases. The benefits of importing are short term whilst local manufacturing is long term because the plants will always be there if the government supports local manufacture

vimi:
Dangote, a man whose life was changed with just 500k by his uncle

Give most youths of nowadays #500,000,under 2 weeks,dem go flex am finish.

Small minded punk na ur moni?

Elslim:
land no de naija for such project ni

If oonly we had leaders that are as productivee as dangote or have the same mindset nigeria would have being an industrialized zone....


We would have all industries woorking...as it is we only have brain dead leaders...

Elslim:
land no de naija for such project ni

Land dey but whether cement dey where it can be mined cheaply?

Sacramento4real:

Give most youths of nowadays #500,000,under 2 weeks,dem go flex am finish.

On point.

AgapeCharis:
It's called expansion.

D dude hasn't started any cement factory from scratch to finish here in Nigeria o, only buying govt owned facilities

EbolaParasite:


The only way to bring prices down is to encourage local manufacturing by hindering bagged cement importers. The short time result is high prices but on the long run, the price will come down.

That is an opinion you could be wrong you are not God
At any rate the objective is not necessarily to bring down prices but to reduce the cost of government projects. Government can insist it will buy at international prices for its projects and this will not lead to a loss in fact quite the opposite. Imagine if govenment decides it wants to build 100000 houses,now imagine the growth and employment that would inject into the economy .In such a scenario Dangote should content itself with marginal profits on high volume sales like every other commodity business

Dangote cement is not running at a loss but is giving ROIs that blue chip companies can only dream of so the question of running at a loss does not arise, cement companies in Nigeria are rent taking companies selling what is essentially a commodity. The only justification for this is "risk" cement companies in the West do not make the kinds of margins they make in Nigeria

omonnakoda:
That is an opinion you could be wrong you are not God

I never said I was and I did not shove my opinion down your throat. If they don't build in Nigeria, you will complain. If they want to build and ask for protection from government so they don't run at a loss, you will complain. Local manufacturing does not only reduce prices "long term" but also creates jobs.....remember that.

vimi:
Dangote, a man whose life was changed with just 500k by his uncle

500k in the early 80s is not just, its like N200m today

omonnakoda:
That is an opinion you could be wrong you are not God
At any rate the objective is not necessarily to bring down prices but to reduce the cost of government projects.

Dangote cement is not running at a loss but is giving ROIs that blue chip companies can only dream of so the question of running at a loss does not arise cement companies in Nigeria are rent taking companies selling what is essentially a commodity. The only justification for this is "risk" cement companies in the West do not make the kinds of margins they make in Nigeria

How do you know this? Do you have their records? Do you know how long it takes them to recoup their investments? Are you aware that most of these plants will only start to have positive cash flow after at least 5 years? Do you know that it takes them double that time to pay back the loan. Also, most loans are funded by foreign banks in conjunction with local ones and the deals are made in "dollars". With the way the naira fluctuates, do you know how long it will take to pay back those loans?

Just so you understand what I am saying. Imagine if you took a 500 million dollar investment when naira was 160 or 170. Do you know how much damage to your business the recent increase to 199 to a dollar is?

EbolaParasite:


I never said I was and I did not shove my opinion down your throat. If they don't build in Nigeria, you will complain. If they want to build and ask for protection from government so they don't run at a loss, you will complain. Local manufacturing does not only reduce prices "long term" but also creates jobs.....remember that.

They are not dong anyone a favour by building in Nigeria.They are doing business at incredible margins and if they cannot produce at internationally competitive prices we should give up on cement and focus on areas where we can compete and import instead.However there is no reason why we cannot compete. The rational for producing in Nigeria is that we can compete on price internationally and if that is not the case we should quit. You cannot say what you are saying without data.What are the profit margins of Nigerian manufacturers and how does that compare internationally??

http://www.proshareng.com/news/26969/Benefits-of-expansion-on-profitability-that-drive-price-Proshare
The estimated ratio also reveals that Dangote Cement's profit margin for the period has consistently been above benchmark internationally, ranging from 46.76 to 53.37 per cent.

is healthy and shows the commitment of management to reducing cost and in the process support profitability.


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