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Price Of Petrol And Cement In Nigeria May Remain The Same. - Business - Nairaland

Nairaland ForumNairaland GeneralBusinessPrice Of Petrol And Cement In Nigeria May Remain The Same. (397 Views)

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Price Of Petrol And Cement In Nigeria May Remain The Same. by Katlyst(op):
Dangote and BUA group business models don't really support reduction in price of commodities in Nigeria. They mostly sell at international price to maximise profit.

When the price of cement is very cheap in Nigeria compared to international price for neighbourhood countries, there will be tendency for smuggling across borders.

So, how will Dangote and BUA sell their cement to neighbourhood countries?

This is exactly what happened to petrol during fuel subsidy regime.
A loss to federal government and profit to smugglers.
Don't expect Dangote's petrol to sell for #100 per liter in Nigeria and #200 per liter in Benin, Togo, Ghana or Cameroon.
Re: Price Of Petrol And Cement In Nigeria May Remain The Same. by Katlyst(op): 1:06pm On Dec 23, 2020
Katlyst:
Dangote and BUA group business models don't really support reduction in price of commodities in Nigeria. They mostly sell at international price to maximise profit.

When the price of cement is very cheap in Nigeria compared to international price for neighbourhood countries, there will be tendency for smuggling across borders.

So, how will Dangote and BUA sell their cement to neighbourhood countries?

This is exactly what happened to petrol during fuel subsidy regime.
A loss to federal government and profit to smugglers.
Don't expect Dangote's petrol to sell for #100 per liter in Nigeria and #200 per liter in Benin, Togo, Ghana or Cameroon.
Although, their industries create huge job opportunities for our youths and overall national development, the price of their commodities can't drastically go down.

FOD, dominique
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