Economy

Retailers, Others List Factors Affecting Cement Prices Cement

Published

on

News

By Rukayat Moisemhe
Dealers, especially retailers, blamed the N3,400 retail price of a bag of cement in Lagos on freight and other logistics costs accrued after the initial purchase.

They made this known in separate talks with the Nigeria News Agency (NAN) on Thursday in Lagos.

This is because the same amount of Dangote and Lafarge cement was considered to be sold at the retail price of N3,400 in an investigation by NAN in Lagos.

Mr. AbdulRasheed Babatunde, a cement retailer, attributed the development to the additional costs of logistics, transportation, store rental and labor after purchase.

Babatunde said he obtained a bag of cement from wholesalers at 3,100 naira.

“The situation is like when you go to the market to buy things to sell. As a trader, is it the same price that you bought the items in the market that you would sell them for?

“You have to take into account all your logistics to arrive at a price that would always be profitable for your business and at the same time, taking into account the plight of the masses.

“And honestly, I don’t buy for N2 450 or anything like that because I don’t go to the factory or factories to buy.

“It would mean I would sell even more because it means I’m traveling to get cement,” he said.

Another dealer, Ms Anuoluwapo Obafemi, said the gain on a bag of cement was less than N300 and the saving grace was that they mostly sold in bulk and thus made tangible profit.

“There are times when people buy 100 bags or up to 1,000 bags and so we make a profit that way, otherwise it would have affected a lot of things.

“The price of cement has risen steadily over the years, but we started buying at N3,100 this year and selling at N3,400 as a result,” she says.

Mr. Devakumar Edwin, Group Executive Director, Strategy, Portfolio Development and Investment Projects, Dangote, had said the price of a bag of cement from his factories and factories on April 12 was N 2,450 in Obajana and Gboko and 2510 N at Ibese, Nigeria.

Dr Muda Yusuf, Director General of Lagos Chamber of Commerce and Industry (LCCI), said it was necessary to look at the main variables determining prices in order to draw appropriate conclusions.

“Price pressure could result from production or declining production, surging demand, monopoly practices, high transport and logistics costs, profits of distributors, wholesalers and retailers; currency depreciation, general inflationary pressures, among others.

“So it is important to explore these possibilities when we approach the phenomenon of price increases. Such ideas would define the solution that could be proposed.

“But price control or price fixing is not an option. Price controls create unnecessary upheaval in the economy, ”he said.

The Federal Competition and Consumer Protection Commission (FCCPC) has stated that it is keen to ensure strong and fair competition in Nigeria for the benefit of consumers and to bring about fair prices for products.

Regarding events in other climates, Mr. Babatunde Irukera, Executive Vice President, FCCPC, noted that the global principle of business separation ensures that the regulator’s default assumption is not to conclude that the the behavior of a multinational in one market was necessarily the same in another. .

He said, however, that there were exceptions to this principle, for example when an organization (or group) acts as a single economic entity (SEA) or where it is proven that even as a different companies, there was active coordination, supervision or collaboration with regarding the conduct involved.

“The Commission is aware of the results of the regulations in Zambia with regard to the cement industry.

“The Commission also understands the strong public interest in this matter, in particular because, and considering that the main players in the Zambian market are also players in the Nigerian market.

“The Commission, however, is careful to note that the results of regulation in other markets do not necessarily confirm the violation of the law in a different market.

“This is an important distinction to promote confidence in our market and in the clarity and stability of the regulatory framework and regime.

“That said, the Commission recognizes the context and complexities involved in this particular case, and how the body of evidence gathered by its Zambian counterpart can be useful and potentially indicative in an assessment and / or investigation of the structure and market conduct in Nigeria.

“To this extent, the Commission engages a diverse and multiple relevant stakeholders, including the Zambian authorities, to guide its course of action and / or any required intervention in the sector, as appropriate,” he said. (NOPE)

(NAN)

Short Link: https://wp.me/pcj2iU-3yQf

NNN

NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor @ nnn.ng

16,000 jobs’ll be created when National Theatre’s renovation is completed – Official Gen. Joshua Dogonyaro, ex-CDS dies at 80 Death Coronavirus – Eritrea: Ministry of Health announcement (May 12, 2021) New board will run the National Theatre after renovations – GM Ogun Govt. restates commitment to quality health care Eid-el-Fitr: Ganduje urges Muslims to pray for peace Coronavirus – Nigeria: COVID-19 case update (May 12, 2021) Eid-el-Fitr: Orji Kalu advocates national cohesion Expert wants greater investment in food security Incentives for the production of the digital economy in Cameroon (by Achare Takor) Ex minister, Turaki urges Muslims to uphold Ramadan values, peace, unity, benevolence Coronavirus – Daily update on the status of COVID-19 statistics in Zambia (May 12, 2021) Wet Season Farming: FG to distribute farm inputs to farmers Video press release: Weekly press briefing on the coronavirus epidemic Coronavirus – Ethiopia: COVID-19 cases reported in Ethiopia (May 12, 2021) Marriott International opens 5-star hotel in Lagos Coronavirus – South Africa: COVID-19 Statistics in South Africa (May 12, 2021) Kogi governor lauds appointment of Obaje as NG-CARES coordinator COVID-19: NCDC records 1 death, 44 new infections AbdulRazaq appoints 41-year-old multimedia czar as Kwara Tv GM Sallah: Gov. Matawalle assures workers of job security Company Income Tax increases by N97bn in Q1, 2021- NBS Coronavirus – Kenya: COVID-19 update (May 12, 2021) De-escalation ‘an absolute must’ in Israel-Palestine conflict – UN Chief Coronavirus – Eswatini: COVID-19 daily update (May 12, 2021) NMA demands renewed effort to tackle insecurity Coronavirus – Rwanda: COVID-19 update (May 12, 2021) Eid-el-Fitr: PDP urges unity, patriotism to tackle national challenges NUPENG directs members to shut down services in Kaduna State Edo Assembly wants livestock farms registered JUSUN urges FG to deduct Judiciary funds from May FAAC Eid-el-Fitr: APC urges Nigerians to pray for country’s leaders, peace, unity WHO panel urges bold overhaul of pandemic prevention measures $540bn remittance flow reaches low-and-middle-income countries in 2020- WB Arsenal dent Chelsea’s Champions League push Kalu salutes Ekweremadu at 59 NECO: 115 inmates credit English, Maths in Enugu Infinix Releases Award Winning NOTE 10 Pro Series Powerful Performance. Iconic design Eid-el-fitr: Yahaya Bello calls for national integration Eid el-Fitr; Atiku wants Nigerians reflect on peace, unity Osinbajo graces Museveni’s inauguration in Kampala Managing mental health conditions among army officers Infant, two others die in gas explosion in Ogun Uzodimma dissolves cabinet, sacks 20 commissioners We don’t demand money from job seekers, NDLEA warns applicants VC assures of infrastructure development in UNICAL Basketball Africa League announces broadcast partners and fixture schedule ahead of inaugural season Eid-el-Fitri: Observe fire safety measures, Fire Service CG urges Nigerians Ourtv introduces sports channels for Extreme fighting, basketball Nizzolo wins the Giro d’Italia Maglia Ciclamino after biting his nails second in stage 5