Cement price from Dangote factories is between N2,450 and N2,510 per bag.
The Management of Dangote Cement Plc has made it clear that the price of a bag of cement from its factories and plants all across Nigeria, as of the 12th of April 2021 is N2,450 in Obajana and Gboko, and N2,510 in Ibese which includes VAT.
The confirmation was made in view of recent assumptions that the company sells cement in Nigeria at much higher prices as opposed to other countries, particularly Ghana and Zambia.
Devakumar Edwin, the Group Executive Director, Strategy, Portfolio Development and Capital Projects for Dangote, confirmed that, while a bag of Cement sells for a comparable price of $5.1, including VAT in Nigeria, it sells for $7.2 in Ghana and $5.95 in Zambia ex-factory, including all taxes. He said that although the company has direct control over its former factory prices, it cannot control the final price of cement when it arrives at the market. He advised that it is important to differentiate between Dangote’s former factory prices from prices at which retailers sell cement in the market.
He, therefore, was displeased at foreign misinformation or demarketing, being spread by some individuals, that Dangote sells its cement at higher prices in Nigeria as opposed to other African countries to the detriment of Nigerians. He described the allegation as untrue, misleading, and unconfirmed.
He also gave the media persons present at the press conference copies of invoices from Nigeria as well as other African countries like Cameroun, Ghana, Sierra Leone, Zambia, and encouraged them to carry out individual investigations regarding the cost of cement across the West African coast.
Edwin went on to explain that while Dangote cement has a 60% share of the market, other companies have the remaining 40%. The DCP does not have control over either the prices charged by other cement manufacturers or the prices charged by retailers in the markets.
He further added that the demand for cement has risen on a worldwide scale due to the COVID crisis. Nigeria is not exempted as a combination of monetary policy changes and low returns from the capital market has resulted in a major increase in construction activity. To ensure that they meet demand locally, they had to call off exports from their recently authorized export terminals, thereby foregoing earnings in dollars.
They also had to reactivate their 4.5m ton capacity Gboko Plant that closed about 4 years ago and run it at an increased price all in a bid to ensure that they meet demand and keep the price of Cement within control in the country.”