Economy

Our cement factory prices remains stable- Dangote

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By Ismail Abdulaziz
Dangote Cement Plc management says the price of a bag of cement from its factories and factories across Nigeria as of April 12 is N 2,450 in Obajana and Gboko, and N 2,510 in Ibese, value added tax. (Taxes included.

The company has made this clarification given recent insinuations that the company sells cement in Nigeria at significantly higher prices compared to other countries, particularly Ghana and Zambia.

Devakumar Edwin, Dangote Group Executive Director, Strategy, Portfolio Development and Investment Projects, revealed that if 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 works. , all taxes included.

He said that although the company has direct control over its ex-factory prices, it cannot control the final price of cement when it hits the market.

He indicated that it is important to distinguish Dangote’s ex-factory prices from the prices at which retailers sell cement in the market.

So he frowned at the intentional disinformation or demarketing, allegedly sponsored by some individuals, that Dangote sells his cement at higher prices in Nigeria compared to other African countries at the expense of Nigerians.

He called the allegation false, misleading and unfounded, while giving media at the press conference copies of bills from Nigeria and some other African countries like Cameroon, Ghana, Sierra Leone and Zambia. .

He called on the media to conduct independent inquiries into the price of cement on the West African coast.

Edwin further explained that while Dangote cement holds 60% of the market, other companies hold the remaining 40%, adding that it has no control over the prices charged by other cement manufacturers or over the prices. practiced by retailers in the markets.

“Demand for cement has increased around the world in the wake of the COVID crisis. Nigeria is no exception as a combination of monetary policy changes and poor capital market returns has resulted in a significant increase in construction activity.

“To ensure that we were able to meet local demand, we had to halt exports from our newly commissioned export terminals, thereby forgoing dollar revenues. We also had to reactivate our factory in Gboko with a capacity of 4.5 million tonnes, which was closed 4 years ago and operate it at a higher cost, all in an effort to ensure that we are responding. demand and keep the price of cement under control in the country.

“Over the past 15 months, our production costs have increased dramatically. About 50 percent of our costs are USD related, so the cost of critical components like gas, gypsum, bags, and spares; has increased significantly due to the devaluation of the naira and the increase in VAT.

“Despite this, DCP has not increased ex-factory prices since December 2019, while prices for most other building materials have increased significantly. We only adjusted our freight rates to take into account the higher costs of diesel, spare parts, tires and truck replacement. However, we charge our customers only N300 to N350 per bag for deliveries within a radius of 1200 km.

“We have been responsible enough not to even attempt to take advantage of the recent surge in demand to raise prices so far,” he said. (NOPE)

(NAN)

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