Management of Dangote Cement Plc has reacted to claims that the company sells cement at a relatively high price in Nigeria than it does in other countries like Ghana and Zambia.
Dangote’s Group Executive Director, Strategy, Portfolio Development & Capital Projects, Devakumar Edwin, cleared the air while speaking to journalists in Lagos.
According to him, 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 said it is important to distinguish factory price from what retailers sell to customers.
He said the claim that the company sells cement higher in Nigeria than it does in other countries is false and sponsored by malicious people.
‘’To ensure that we meet local demand, we had to suspend exports from our recently commissioned export terminals, thereby foregoing dollar earnings.
‘’We also had to reactivate our 4.5m ton capacity Gboko Plant which was closed 4 years ago and run it at a higher cost all in a bid to guarantee that we meet demand 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% of our costs are linked to USD so the cost of critical components like: gas, gypsum, bags, and spare parts; has increased significantly due to devaluation of the Naira and VAT increase. ‘’Despite this, DCP has not increased ex-factory prices since December 2019 till date while prices of most other building materials have gone up significantly.
‘’We have only adjusted our transport rates to account for higher costs of diesel, spare parts, tyres, and truck replacement. Still, we charge our customers only N300 – 350 per bag for deliveries within a 1,200km radius.
‘’We have been responsible enough not to even attempt to cash in on the recent rise in demand to increase prices so far’’, Devakumar said.