Responding to the insinuations against Dangote Cement, the management of the company has said that the price of a bag of cement from its factories and plants across Nigeria (as at April 12, 2021) is N2,450 in Obajana and Gboko, and N2,510 in Ibese inclusive of value added tax (VAT).

 

Based on the companies,  clarification, it is as a result 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, stated 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 revealed that though the company had direct control over its ex-factory prices, it cannot control the ultimate price of cement when it gets to the market.

 

Edwin advised that it was 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 de-marketing, 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.

 

Describing 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 60 per cent share of the market, other companies have the remaining 40 per cent.

 

According to him, DCP neither has control over 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 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.”