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

Date: 13-04-2021 12:11 pm (1 month ago) | Author: Giwa bayo
- at 13-04-2021 12:11 PM (1 month ago)
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Management of Dangote Cement Plc has clarified that the price of a bag of cement from its factories and plants across Nigeria (as of 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 a 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, tires, 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.

Dangote: Cement price from our Factories is between N2,450 and N2,510 per Bag, VAT inclusive. Nigeria price is in line with or lower than prices across the West African coast







Posted: at 13-04-2021 12:11 PM (1 month ago) | Hero
- Boi2Man at 13-04-2021 05:49 PM (1 month ago)
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But why didn’t you show an invoice of the unit price in Nigeria whereas you show other countries
Posted: at 13-04-2021 05:49 PM (1 month ago) | Gistmaniac
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- gogoman at 13-04-2021 06:57 PM (1 month ago)
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na only Dangote cement dey Naija market? if person dey do anyhow,  go buy another cement. he go reduce him price
Posted: at 13-04-2021 06:57 PM (1 month ago) | Addicted Hero
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- SamNavy at 13-04-2021 11:39 PM (1 month ago)
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Must he be only DANGOTE cement Nigerian will be use.
FG should do something about this.
A whole Nigeria for that matter
Posted: at 13-04-2021 11:39 PM (1 month ago) | Upcoming
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- Ajohn33 at 14-04-2021 12:35 AM (1 month ago)
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DANGOTE CEMENT PROMO 2020/2021 Buy Dangote Cement , And Rice directly from the factory at a promo price of 1700 Naira per bag and Rice for 15,000 naira per bag, Transportation and offloading is 300 Naira, minimum for purchase is from 100 bags and above. kindly contact marketing manager ON (08034825434) for booking and delivery. Note delivery takes 48 hours and it’s nationwide.When Strength matters, Choose 3X.PLEASE TELL OTHERS ABOUT THIS WINDOW OF OPPORTUNITY. ,Transportation cost #300 (08034825434)
Posted: at 14-04-2021 12:35 AM (1 month ago) | Newbie
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