Aconomist:
I don't live in Nigeria, but it is still my country. And I can't invest until this cement issue is resolved.

Good for you bro....man does not live by cement investment alone... I'm sure you know that.... anyway... best wishes.

Csami:


Forgive me for calling you a zomb!e, you are actually a mor0n. Your silly mind brought up the tribe and stup!d business acumen. Negativity is been cheated and attributing tribe to it.

I forgive you 70 times 7, but whatever you call me doesn't make me who I am bro....
Then why result to insults again? Is that your mind?? Are you of the "tribe"?

Op is just being mischievous and petty, or maybe ignorant.

let me enlighten you.

say you are an international business man selling product "A" to your country and country "Bc"

if the fuel price, electricity cost, tax and salary budget in your country is almost 2 or 3 times that of country "Bc", according to the law of cost, expenses, profit and all the economy brouhaha , will you still sell the product at the same price?

if not which country will "A" be cheaper??

this is common sense.

and Aba man who sells shoes in Lagos - imported through the port - and in his home town Aba, where do you think his shoes will be cheaper.

it's all about the expenses and profit.

elGenius:

See this one, bloody filthy hypocrite.

if he where one of you or his refinery where to be located in your enclave, by now you all wouldn't have let us rest with your praises, how your kind are simply better at business that everyone.


Go and put the rubber tire and gasoline on him na

awó child of hate and perdition,

where are your own billionaires, your manufacturing tycoons, the import export merchants, or is it only hard drugs and substandard fake products they know to import & export

it just kills you all that one business man is more relevant and successful than all your billionaires combined by a huge margin.

may that hate and envy kill you all.

I'm not Igbo. I'm happy about the refinery. My only issue is cement.

Aconomist:
I'm not Igbo. I'm happy about the refinery. My only issue is cement.

Is he the only one producing cement, why don't the others step up and compete.

if he sells at #3000 the others should sell at #1000 and let the market force take effect.

after all he isn't forcing anybody to his products.

Aconomist:
.... And you monkeys are too dumb to see it.

People that cannot write publicly without abusing or insulting others actually lack good moral upbringing. You could have made sense without those words.

ayterajah:
Am not supporting dangote but my point of view is that what's the economy state of Zambia compare to Nigeria and don't forget that dangote it's not alone ... he have many govt officials under him

.


The economy is the issue but Dangote, he is anti competition.
Why was only his products taken out if the country when the border was on locked down?
The BUA group protested but they were shut down, now he taking his greed over to the oil sector and this shouldn't be allowed.
Dangote is a fake billionaire

Dangote is a man without a soul

You guys are always on Dangote's matter yet his cement is not the only available brand in the market. Did anybody force you to buy Dangote cement?

...always complaining about how Dangote killed competition. Tbh, this is one of the craziest things I have seen on the internet. If Dangote wants to kill Ibeto, Unicem, Lafarge and others, all he needs to do is crash the price of cement to N1000 per bag. He doesn't need to bribe anybody. This is simple economics. Make una dey use una head on this forum.

Dangote is wicked bla bla, yet his noodles, spaghetti and salt are some of the cheapest brands in the market.

Look at the images below and search for the brand with the best and cheapest offer.

As per the Zambian analogy from the OP, it's really not worth a response from me. I would leave that for primary school students to debate.

Acidosis:
You guys are always on Dangote's matter yet his cement is not the only available brand in the market. Did anybody force you to buy Dangote cement?

...always complaining about how Dangote killed competition. Tbh, this is one of the craziest things I have seen on the internet. If Dangote wants to kill Ibeto, Unicem, Lafarge and others, all he needs to do is crash the price of cement to N1000 per bag. He doesn't need to bribe anybody. This is simple economics. Make una dey use una head on this forum.

Dangote is wicked bla bla, yet his noodles, spaghetti and salt are some of the cheapest brands in the market.

Look at the images below and search for the brand with the best and cheapest offer.

As per the Zambian analogy from the OP, it's really not worth a response from me. I would leave that for primary school students to debate.

This is a stupid argument.

Dangote is the market leader. His prices determine the prices of other Brand and he knows it.
That is why he is not bothered.

If dangote sells cheap, others will sell cheap.

Stop making stupid arguments.

Aconomist:
When people ask me why I don't invest in Nigeria, remember this thread and responses like this. Nigerians are addicted to stagnation and justify their own demise -- only a fool would put his hard earned capital into a nation of monkeys like this.

Cement prices around the world range from $3 to $6 while Dangote is selling for the equivalent of $11 for a profit margin of 60% in Nigeria compared to an industry average profit margin of 5% to 12%. He is able to charge these high prices because of low competition -- he kicked out competitors by hoarding limestone resources and convincing the federal government to ban imports.

According to Rabiu of BUA Group, Nigeria's real cost of cement production is the lowest in the world. The high prices are because of price gouging and monopolistic behavior from Dangote.

Nigeria may also have the lowest production/manufacturing cost in the world, as opposed to what we have been made to believe about Nigeria.

E go shock us.

All the lies they have used to put our people in bondage.

They have created a false negative image about Nigeria.

The Naija economy bam.

Our problem might be very weak demand in some sectors.

elGenius:
Op is just being mischievous and petty, or maybe ignorant.

let me enlighten you.

say you are an international business man selling product "A" to your country and country "Bc"

if the fuel price, electricity cost, tax and salary budget in your country is almost 2 or 3 times that of country "Bc", according to the law of cost, expenses, profit and all the economy brouhaha , will you still sell the product at the same price?

if not which country will "A" be cheaper??

this is common sense.

and Aba man who sells shoes in Lagos - imported through the port - and in his home town Aba, where do you think his shoes will be cheaper.

it's all about the expenses and profit.

Bro, the cost of production in Nigeria is still very low.

All those complains are just excuses.

A business man ruining his big gen (1 mega wats) is even cheaper for his business, than paying Nepa bill. If you know you, you know.

On the other hand it wont be profitable for a small company to run gen

Imagine how much Nepa or what ever go charge a cement manufacturing plant every month?

All over the world these big plants generate their own electricity, but Naija billionaires want us to believe otherwise.

Them go come they tell us say the problem na light,etc.

Niaja is the best place to manufacture anything.

Let the manufacturers tell us how much they spend on diesel per month.

They dont want the mases to manufacture like them, so they discourage us with false Nigerian problems.

Its only in Nigeria you see a billionaire complaining like a poor fellow.

jaszplus12:

A particular tribe are not happy because it's not their person that's enjoying the monopoly...if it were... hmmnmm they would have said how no one else can be smarter than them!! Would not have referred to it as wickedness but as business acumen!!

True talk.

elGenius:

Is he the only one producing cement, why don't the others step up and compete.

if he sells at #3000 the others should sell at #1000 and let the market force take effect.

after all he isn't forcing anybody to his products.

He used corruption to destroy the other cement producers and hoard all the limestone resources in the country.

Read this article by Chief David Iweta, a cement producer that was destroyed by Dangote.

https://www.thenigerianvoice.com/movie/54550/real-reasons-cement-price-is-high-iweta.html

Rabiu, owner of BUA Group is saying the same thing about Dangote. Who are you to argue?

https://www.nairaland.com/6436641/rabiu-blasts-dangote-calls-liberalize

LikeAking:


True talk.

First off, I'm not Igbo. And second off, if you people want to reduce everything in Nigeria to a tribal game, why not just break up the country? This is clearly not working. A man is looting Nigeria dry, but you support it because if he is your tribesman.

Even Rabiu, another Hausa, knows what Dangote is doing is wrong.

https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

PlsBanMe:
Dangote is not donating to politicians there or to the two major political parties in that country as he does in Nigeria. Someone has to pay after all.

His business there probably run on public electricity supply, thereby reducing his costs unlike Nigeria where he probably has to bribe electricity distribution companies and has to have standby generator sets.

Less cost of production will lead automatically to lower prices of goods.

Also for your information, Dangote Cement is completely vertically integrated. He has his own power plants and is now producing more electricity than the national grid. He owns the limestone to make clinker, he owns to coal mines to make power, he even owns his own port to bring in supplies. He even manufactures his own trucks, and bags!

Dangote's cost of production is the lowest in the world. But his price is the highest in the world.

Aconomist:
Also for your information, Dangote Cement is completely vertically integrated. He has his own power plants and is now producing more electricity than the national grid. He owns the limestone to make clinker, he owns to coal mines to make power, he even owns his own port to bring in supplies. He even manufactures his own trucks, and bags!

Dangote's cost of production is the lowest in the world. But his price is the highest in the world.

Most people are not aware Nigeria has the lowest cost of production in the world.

When you have your own gen plant, it makes the cost of production cheaper.

Aconomist:
First off, I'm not Igbo. And second off, if you people want to reduce everything in Nigeria to a tribal game, why not just break up the country? This is clearly not working. A man is looting Nigeria dry, but you support it because if he is your tribesman.

Even Rabiu, another Hausa, knows what Dangote is doing is wrong.

https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

Naija na tribal country.

If Dangote was an Ibo/Yoruba man, the Ibos/Yorubas will attack any one criticizing him and also support him to the maximum.

So make we all allow Dangote rest.

Any Nigerian in his position will do even worse.

Nigerians are always holy (For dia mind!), until they attain fame,money and power.

Acidosis:
You guys are always on Dangote's matter yet his cement is not the only available brand in the market. Did anybody force you to buy Dangote cement?

...always complaining about how Dangote killed competition. Tbh, this is one of the craziest things I have seen on the internet. If Dangote wants to kill Ibeto, Unicem, Lafarge and others, all he needs to do is crash the price of cement to N1000 per bag. He doesn't need to bribe anybody. This is simple economics. Make una dey use una head on this forum.

Dangote is wicked bla bla, yet his noodles, spaghetti and salt are some of the cheapest brands in the market.

Look at the images below and search for the brand with the best and cheapest offer.

As per the Zambian analogy from the OP, it's really not worth a response from me. I would leave that for primary school students to debate.

I'm a trained economist in the U.S. I don't know what they teach you in Nigerian schools, but when you see someone selling cement at more than double its cost of production (60%) EBITDA margin that should tell you that the market is anti-competitive and broken.

If I was to pitch Dangote cement stock to most serious American investors, they would tell me that these numbers are the result of fraud or corruption. If Nigerians are defending something like this, you monkeys really have the zoo country you deserve. The only thing intelligent people should do is train themselves to stop caring and wash their hands of Nigeria.

If the domestic industry can't produce cement at a reasonable price (they can, Dangote is just preventing it) allow imports. Don't hold the whole construction industry hostage.

Dangote produces cement from our Nigeria resources


Sell it to us for 3k

Export, and sell to other countries for 1k

Aconomist:
He used corruption to destroy the other cement producers and hoard all the limestone resources in the country.

Read this article by Chief David Iweta, a cement producer that was destroyed by Dangote.

https://www.thenigerianvoice.com/movie/54550/real-reasons-cement-price-is-high-iweta.html

Rabiu, owner of BUA Group is saying the same thing about Dangote. Who are you to argue?

https://www.nairaland.com/6436641/rabiu-blasts-dangote-calls-liberalize

where were these guys when Dangote was doing his research and planing his business.
all they do is copy-copy, Dangote goes into cement they want to too, he goes into flower, tomato paste, spagety they all want to too.

for years Nigeria has had issues with her refineries non of them took the opportunity, but the moment Dangote did that is when they all want to also build refinery.

those guys lack business ideas, they are just waiting for Dangote to give them ideas.

let them think outside the box and go into another sector where they to can dominate.

elGenius:
where were these guys when Dangote was doing his research and planing his business.
all they do is copy-copy, Dangote goes into cement they want to too, he goes into flower, tomato paste, spagety they all want to too.

for years Nigeria has had issues with her refineries non of them took the opportunity, but the moment Dangote did that is when they all want to also build refinery.

those guys lack business ideas, they are just waiting for Dangote to give them ideas.

let them think outside the box and go into another sector where they to can dominate.

Who cares? This is not about personalities, this is about cement prices. If the local market can't provide cement at a reasonable price, the government should allow imports. Liberalize the market.

Aconomist:
I'm a trained economist in the U.S. I don't know what they teach you in Nigerian schools, but when you see someone selling cement at more than double its cost of production (60%) EBITDA margin that should tell you that the market is anti-competitive and broken.

If I was to pitch Dangote cement stock to most serious American investors, they would tell me that these numbers are the result of fraud or corruption. If Nigerians are defending something like this, you monkeys really have the zoo country you deserve. The only thing intelligent people should do is train themselves to stop caring and wash their hands of Nigeria.

You haven't said any meaningful thing bro asides the disputable fact that you're a trained economist in the U.S. Well, I'm not a trained economist but I know how to check appropriate places for information instead of making up figures to attack an individual over a perceived industry problem - same individual with the best market price o. Lol.

I have attached the profit/loss profile for the year 2019. So, please check and enlighten yourself. Look at the gross profit, revenue, and profit t attributable to the owners of the company.

Let's even assume your 60% data is correct, how do you explain the fact that his price has consistently remained the best in Nigeria? How come the "wicked" Dangote sells cheaper Cement than "Saint Ibeto" and "Saint Lafarge"? Why can't they crash the price and, consequently, create a price war like many companies in your country of residence do?

Acidosis:


You haven't said any meaningful thing bro asides the disputable fact that you're a trained economist in the U.S. Well, I'm not a trained economist but I know how to check appropriate places for information instead of making up figures to attack an individual - same individual with the best market price o. Lol.

I have attached the profit/loss profile for the year 2019. So, please check and enlighten yourself. Look at the gross profit, revenue, and profit t attributable to the owners of the company.

Let's even assume your 60% data is correct, how do you explain the fact that his price has consistently remained the best in Nigeria? How come the "wicked" Dangote sells cheaper Cement than "Saint Ibeto" and "Saint Lafarge"? Why can't they crash the price and, consequently, create a price war like many companies in your country of residence do?

Well, I respect you for at least trying to argue with me based on data. I have attached Dangote's 2020 earnings presentation and screenshotted page 8. Here is the link: https://www.dangotecement.com/wp-content/uploads/reports/2020/FY2020/DangoteCement_FY2020_ResultsPresentation.pdf

As you can see circled in red, Dangote's EBITDA margin in Nigeria is 58% -59%, which I rounded to 60%. This means he is selling cement at more than double its cost of production. If you are not aware, "EBITDA" refers to Earnings Before Interest Taxes, Amortization or Depreciation -- similar to cash operating profits. Compare this to Dangote's "Pan African" segment, where the EBITDA margin is only 22%.

His margin is lower in other African countries because they have high levels of competition in the market and don't allow Dangote to price gouge like he is doing in Nigeria. The chart you listed above is combining Dangote's Nigerian operations with his Pan African operations.

After we settle the issue of margins, I'll explain to you why competitors aren't starting a price war.

Aconomist:
I'm not Igbo. I'm happy about the refinery. My only issue is cement.

Smiles. Check the financial reports on Dangote from 2005 to 2012. You will see massive market manipulations, inconsistencies and he the real truth behind the sky rocketing to richest in Africa, check the company stocks, Dividends issuance etc. You'll understand why few folks who got wind of his activities never respect him.

Aconomist:
Well, I respect you for at least trying to argue with me based on data. I have attached Dangote's 2020 earnings presentation and screenshotted page 8. Here is the link: https://www.dangotecement.com/wp-content/uploads/reports/2020/FY2020/DangoteCement_FY2020_ResultsPresentation.pdf

As you can see circled in red, Dangote's EBITDA margin in Nigeria is 58% -59%, which I rounded to 60%. This means he is selling cement at more than double its cost of production. If you are not aware, "EBITDA" refers to Earnings Before Interest Taxes, Amortization or Depreciation -- similar to cash operating profits. Compare this to Dangote's "Pan African" segment, where the EBITDA margin is only 22%.

His margin is lower in other African countries because they have high levels of competition in the market and don't allow Dangote to price gouge like he is doing in Nigeria The chart you listed above is combining Dangote's Nigerian operations with his Pan African operations.

Bro, EBITDA is not a reliable or relevant construct as far as this discussion is concerned. It strips of capital investments, cost of property, equipment, and plant.

The emboldened is completely false.

Even if the emboldened is true, why do you blame Dangote for the "lack" of competition in the industry in Nigeria?

Acidosis:



Bro, EBITDA is not a reliable or relevant construct as far as this discussion is concerned. It strips of capital investments, cost of property, equipment, and plant.

The emboldened is completely false.

Even if the emboldened is true, why do you blame Dangote for the "lack" of competition in the industry in Nigeria?

EBITDA is the best way to get an apples to apples comparison between different companies. Dangote is not the only manufacturing company that invests in capital and property plant and equipment, so that doesn't justify the outrageous margin (which is around double the EBITDA margin of a Ferrari ). U.S. cement companies earn an average EBITDA margin of around 10%-12% compared to Dangote's 59%

link: https://www.macrotrends.net/stocks/charts/USCR/u-s-concrete/ebitda-margin

Dangote is price gouging the market, this is an indisputable fact. He influenced the government (through bribery) to create scarcity by banning imports and allowing him to hoard limestone resources to prevent other companies from entering the market. According to Rabiu of BUA Group, the only way to fix it is to liberalize the industry. He state's quote:

"The price of cement, which presently sells for about N4,000 per bag, remains high in Nigeria because the few producers are not able to meet the country’s huge demand. Nigeria’s 200 million people make it about 130 kilograms per head. If you check, you will see that most countries in Africa are doing between 170 kilogrammes to 200 kilogrammes per head.

So, Nigeria is actually producing less than other countries in Africa, apart from maybe Niger Republic. So, that means that we do not have enough capacity

“Even though this cement policy is a good one, it must be done in such a way that a lot of players must come in and participate. There is no point in making a policy that only one, two, or three people are able to benefit from that policy,” he said, adding: “That does not make sense. I am benefiting from this policy, but I know it is a bad policy. So, whilst the policy is good, the way it is being administered is not good. You can’t have a policy that restricts so many people from participating, at the end of the day, you are just creating a monopoly

Read the full article for more information: https://www.thisdaylive.com/index.php/2021/02/09/bua-advocates-liberalisation-of-cement-policy-to-crash-price/

Dangote's EBITDA margin in other African countries is low because of massive competition in the market. Take for example, the Ethiopian cement market. Ethiopia is a much poorer country than Nigeria, but look at the massive number of cement firms they have competing with Dangote.