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Dangote Cement Makes Clarification Over Cement Price Disparity Between Nigeria and Neighbouring Countries

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

…………by Victor Egbo………..
Management of Dangote Cement Plc has clarified that the price of a bag of cement from its factories across Nigeria (as at 28th August 2023) is N4,010 in Okpella and N4,640 in Ibese, Objana, and Gboko. Including transportation costs and the location of delivery, prices could range between N5,000 to N5,300 per bag.

The said this clarification was made in view of recent misinformation that the Company sells cement in Nigeria at significantly higher prices relative to other countries, particularly the Republic of Benin, and other neighbouring countries.

Dangote Cement’s Group Managing Director, Arvind Pathak, advised that it is important to distinguish Dangote Cement’s ex-factory prices from prices at which retailers sell cement in the market.

Our check in Cotonou, the commercial capital of the Republic of Benin indicated that cement sells between CFA 3,495 and CFA 4,500, which at the current exchange rate of CFA 1: NGN 1.43 is between N4,997 to N 6,435 per bag.

Pathak said that Dangote Cement is focused on delivering quality cement at the best price possible, despite the current inflationary environment. “We continue to innovate new ways to deliver quality products to millions of our customers across Africa, while providing top-notch customer services. At Dangote Cement, we are committed to building an inclusive and sustainable business for all stakeholders across the value chain”.

Dangote Cement Company is facing a surge of criticism from Nigerians who are questioning the fairness of his business empire.

The scrutiny stems from the perceived disparities in the prices of Dangote Group’s cement products within Nigeria and across other African nations.

Many alleged that Dangote Cement Company offers cement at more reasonable prices to other African countries, while Nigerian consumers experience higher costs for the same product.

One X user named Nefertiti raised the issue, noting that despite Dangote Cement’s production in Nigeria, the product is not offered at an affordable rate within the country.

Nefertiti said: “Dangote Cement is more expensive than imported cement, & you have all the raw materials in Nigeria. Contractors prefer imported cement, but cement import is banned in Nigeria. You must use Dangote by force. This is for those waiting to buy cheap petrol from the Dangote Refinery.”

Another X user, Abdullahayofel, pointed out that Dangote Cement benefits from locally sourced raw materials in Nigeria at minimal costs, giving the company a competitive advantage.

“Dangote cement is produced in Nigeria, The raw material is sourced locally in Nigeria at almost zero cost. Nothing is imported. Almost zero taxes yet the price of cement is 5,200 Naira in Nigeria and the same is sold in the Benin Republic at 3,699.15 Naira,“ Abdullahayofel posted.

The sentiment was echoed by a user identified as Captain Tango, who suggested that Dangote’s business success relies on government support and favorable treatment.

“Dangote is not the smartest politician, what he enjoys is government patronage thereby granting him crazy tax breaks and monopoly over the market. If INNOSON Motors or other businessmen have the same privileges he enjoys it will be good for all or throw the cement market open,“ Captain Tango said.

Priste highlighted the issue of a lack of a level playing field in Nigeria’s business landscape, attributing the cement market’s monopolization to government policies that allegedly stifle competitors and contribute to the pricing disparities.

“The issue is basically the lack of a level playing ground in the country. He alleged because other competitors are steffen by some government policies, hence the situation that is looking a monopoly. This same Dangote cement is cheaper in other West African countries,” Priste said.

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