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"Our Cement Price is lower Here in Nigeria Than Other Countries"- Dangote

Despite reported inability of many ordinary Nigerians to afford the purchase of just 1 bag of cement in Nigeria due to alleged hike in cement prices, news reports have indicated that the management of Dangote Cement Plc made it known that the price of its 1 bag of cement right from its factory ranged from N2,450 in Obajana and Gboko to N2,510 in Ibese, inclusive of VAT.

The public reaction from the famous cement producing establishment in Nigeria was reported to be in response to the recent thinking that the company sells cement in Nigeria at insanely high prices compared to other African countries such as Ghana and Zambia.

Devakumar Edwin who is the incumbent Dangote’s Group Executive Director, Strategy, Portfolio Development & Capital Projects disclosed this on behalf of the organisation while interacting with news reporters in Lagos.

He disclosed that while 1 bag of cement sells for an equivalent of $5.1, including VAT in Nigeria, it goes for $7.2 in Ghana and $5.95 in Zambia ,inclusive of prerequisite taxes.

He went further to make it known that it is very imperative to differentiate Dangote’s ex-factory prices from the benchmark prices at which retailers sell cement in the market.

The organisation Executive Director was not comfortable with intentional wrong information or demarketing reportedly backed by some persons with the understanding that Dangote sells its cement at huge prices in Nigeria compared to other African countries without having the feelings of Nigerians at heart.

Edwin declared that such abhorrent insinuation was out of place and misleading.

He advised the news reporters to execute private investigation into the price of cement in some other African countries that include Cameroun, Ghana, Sierra Leone and Zambia.

The Dangote Cement boss also revealed that to ensure that local demandswere met,the factory had to temporarily put a stoppage to exports from the recently commissioned export terminals,which led to loss of dollar earnings for the company.

He was quick to add that since the past 15 months,the cement production costs have gone up appreciably and that almost 50% of the costs are linked to USD .

Edwin made it known also that the cost of the fundamental components like: gas, gypsum, bags, and spare parts has increased due to naira devaluation and increased in VAT.


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