Dangote Cement Director Reveals Why Cement is Expensive in Nigeria
- The cement manufacturer said its product is cheaper in Nigeria than in Ghana and Zambia
- Dangote Cement stated that the expensive product is not caused by the company, but by the retailers
- It was learnt that the company's Cement sells within the price range of N2,450 and N2,510 inclusive of VAT depending on factories
PAY ATTENTION: Join a community of CEOs, founders and decision-makers: subscribe for a free monthly business newsletter Digital Talks and succeed BIG!
Dangote Cement has revealed why its market price is more expensive in Nigeria compared to other African countries. The company said it sells the cement product at a cheaper rate, but retailers influence the consumer price.
The firm had come under criticism recently due to the revelation that its cement product is costly than the price it sells in Ghana and Zambia. But the management of the company denied the claim.
In a press release from the cement giant, it was stated that the Dangote bag of cement sells for $5.1, including value-added tax, but in Ghana and Zambia, the price rate is put at $7.2 and $5.95 in ex-factory - this is inclusive of all taxes.
The manufacturer said its factories in Obajana and Gboko sell a bag of Cement at N2,450, while that of Ibese sells at N2,510 inclusive of VAT. However, retailers have control over the price once the product leaves its factories.
Source: Getty Images
Dangote's Group Executive Director, Strategy, Portfolio Development & Capital Projects, Devakumar Edwin, said the company can't control the ultimate price of the cement produced:
Edwin 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 noted that Nigerians need to know how to differentiate between Dangote’s ex-factory prices from prices at which retailers sell cement in the market.
Meanwhile, Legit.ng had earlier reported that MTN is planning to conduct an initial public offering for its mobile money business in the next year to raise funds for the operation.
The capital raised is expected to also reduce the company's debt by about $3 billion. It is unsure which stock exchange the network provider will list the MoMo segment, but it plans to sell a minority stake.
It was learnt that the mobile money business of the y'ello network will be more valuable than that of Airtel, which is also planning on conducting an initial public offering within the next four years.
Source: Legit.ng
