BUSINESS NEWS

Cement is Cheaper in Nigeria than in Ghana and Zambia- Dangote

Paramount cement makers in Nigeria, Dangote has stated it looses alot of money focusing on supplying the Nigerian market.

It also noted that the product sells cheaper in Nigeria than it does in Ghana.

This was made known by the company’s Group Executive Director in charge of Strategy, Portfolio Development and Capital Projects, Mr. Edwin Devakumar.

“To ensure that we meet local demands, we had to suspend exports from our recently inaugurated export terminals, thereby foregoing dollar earnings,” he said, adding that the company also reactivated its 4.5 million ton capacity Gboko plant.

Edwin Devakumar

“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,” it claimed in a statement amid claims the price of Dangote’s cement is higher in Nigeria than elsewhere.”

The company noted that their products from Gboko and Obajana factories sell at N2,450 and N2,510 at Ibese factory.

Mr. Devakumar said this in order to clear the doubts the Nigerian people are beginning to raise concerning the prices of cement in the country compared to Ghana and Zambia.
“This is all in a bid to guarantee that we meet demands and keep the price of cement within control in the country. Over the past 15 months, our production costs have gone up significantly.
“About 50 per cent of our costs are linked to the USD (dollar), so the prices of critical components such as gas, gypsum, bags, and spare parts; have increased significantly due to the devaluation of the Naira and VAT increase.
“Despite this, Dangote Cement has not increased ex-factory prices since December 2019 to date while prices of most other building materials have gone up significantly,” he said.

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