Stella Dimoko Korkus.com: Dangote Says ''Cement Price From Our Factories Is Between N2,450 And N2,510 Per Bag, VAT Inclusive...''

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Tuesday, April 13, 2021

Dangote Says ''Cement Price From Our Factories Is Between N2,450 And N2,510 Per Bag, VAT Inclusive...''

Dangote says Nigeria price of their cement is in line with or lower than prices across the West African coast and proof of invoice is attached.









Dangote: Cement Price From Our Factories Is Between N2,450 And N2,510 Per Bag, VAT Inclusive

…says Nigeria price is in line with or lower than prices across the West African coast

Management of Dangote Cement Plc has clarified that the price of a bag of cement from its factories and plants across Nigeria (as at 12th April, 2021) is N2,450 in Obajana and Gboko, and N2,510 in Ibese inclusive of VAT. The clarification was made in view of recent insinuations that the company sells cement in Nigeria at significantly higher prices relative to other countries, particularly Ghana and Zambia.

Dangote’s Group Executive Director, Strategy, Portfolio Development & Capital Projects, Devakumar Edwin revealed that, while a bag of Cement sells for an equivalent of $5.1, including VAT in Nigeria, it sells for $7.2 in Ghana and $5.95 in Zambia ex-factory, inclusive of all taxes. He said that though the company has direct control over its ex-factory prices, it cannot control the ultimate price of cement when it gets to the market. He advised that it is important to distinguish Dangote’s ex-factory prices from prices at which retailers sell cement in the market.


He, therefore, frowned at intentional misinformation or demarketing, allegedly sponsored by some individuals, that Dangote sells its cement at higher prices in Nigeria relative to other African countries at the expense of Nigerians. He described the allegation as false, misleading, and unfounded, while giving the media persons present at the press conference copies of invoices from Nigeria and some other African countries (Cameroun, Ghana, Sierra Leone, Zambia), and urging them to conduct independent investigations on the price of cement across the West African coast.

Edwin further explained that while Dangote cement has 60% share of the market, other companies have the remaining 40%. DCP has no control over neither the prices charged by other cement manufacturers nor the prices charged by retailers in the markets.

He further explained that "Demand for cement has risen globally as a fallout of the COVID crisis. Nigeria is no exception as a combination of monetary policy changes and low returns from the capital market has resulted in a significant increase in construction activity. To ensure that we meet local demand, we had to suspend exports from our recently commissioned export terminals, thereby foregoing dollar earnings. We also had to reactivate our 4.5m ton capacity Gboko Plant which was closed 4 years ago and run it at a higher cost all in a bid to guarantee that we meet demand and keep the price of Cement within control in the country."


He said: "Over the past 15 months, our production costs have gone up significantly. About 50% of our costs are linked to USD so the cost of critical components like: gas, gypsum, bags, and spare parts; has increased significantly due to devaluation of the Naira and VAT increase. Despite this, DCP has not increased ex-factory prices since December 2019 till date while prices of most other building materials have gone up significantly. We have only adjusted our transport rates to account for higher costs of diesel, spare parts, tyres, and truck replacement. Still, we charge our customers only N300 – 350 per bag for deliveries within a 1,200km radius. We have been responsible enough not to even attempt to cash in on the recent rise in demand to increase prices so far” he said  










18 comments:

  1. Who read should summarize biko,i bought 4bags of cement @3500 each 2wks ago.

    ReplyDelete
    Replies
    1. So true.. that's how much I bought too last week.

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    2. My base is #4,300 now.

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  2. Abeg make una leave these people

    ReplyDelete
  3. While the ones sold outside is between 3,500 and 3,800.Then the one sold in Zambia is 1,800.Who do us for this country abeg?I was hopeful before that thing will get better but as I dey look am so,this world is not my home,I'm just passing through🎵🎵

    ReplyDelete
  4. The company is not being truthful. Taking Nigerians for a ride always. Just like DSTV. Why do we pay more than others? Lack of regulatory body? "Nothing go happen", and no price control agency to control prices?

    While Dangote is busy fighting BUA to monopolize the market in Nigeria, price control is not available.

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  5. Abeg he should go and sit down greedy man, he keep increasing his products and yet don't want others to
    Na BUA fit, how wish Ibeto will spring but Nigerian government is far from being useful

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  6. Very funny price point when you check with reality of 3200 to 3500 a bag.

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  7. I bought #3500 per bag last week
    And they are selling cheaper in Ghana
    This government has killed other promising producers.Why give monopoly to Dangote.

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  8. i bought last week 3500....me i have put project on hold for now sef. what a country

    ReplyDelete
    Replies
    1. Advice. If you have spare cash finish up your project. This thing called devualation of naira is real as shit. My plan once we complete this our current project I have told my husband we pause on anything building for now. How many house we wan leave sef. I am using all my funds for businesses domiciled in USD. Let the change I have get some value for future.

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  9. I bought 50bags 3700 each last week in Benin City

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    Replies
    1. We have been buying @4,000 in the same Benin

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  10. Is N4,000 in Benin city. These retailers have a lot to answer for. Let them explain why they sell so high. Please no one should tell me transportation cost.

    ReplyDelete

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