By Victor Ahiuma-Young

LAGOS—LEADING cement manufacturer, Dangote Cement Plc, weekend, announced drastic reduction of the prices of its cement.

The new price regime announced by the Group Managing Director/Chief Executive Officer, GMD/CEO, of Dangote Cement, Mr. Devakumar Edwin, pegged the Dangote 32.5 cement grade at N1,000 per 50 kg bag, while the higher 42.5 grade would sell for N1,150 per bag.

A statement by the company at the end of a management meeting said, however, that the new prices were exclusive of the Value Added Tax, VAT, representing about 40 per cent discount on the prevailing market price of the product currently sold for N1,700 irrespective of the grade, across the country.

Edwin said the move was in line with the company’s commitment to the nation’s dire need for the development of infrastructure and to boost the federal and state government’s ongoing effort to reduce the near 20 million housing deficit in Africa’s largest economy.

He said, “we recognize the need for an increased rapid response to the huge infrastructure and housing deficit in the country, and one of the ways of addressing the issue is bringing the price of building materials down to much more affordable levels especially cement which is within our control as part of our contribution to the transformation agenda of the Goodluck Jonathan administration and the attainment of key milestones in the Millennium Development Goals, MDGs.

“Since the commencement of the implementation of the backward integration policy for cement in the country over 12 years ago, the local production capacity of the product rose from less than three million metric tonnes per annum to about 38 million metric tonnes per annum. During the more than 12-year period of the backward integration policy, nearly $20 billion has been directly and indirectly injected into the Nigerian cement industry with Dangote Cement Plc accounting for 60 per cent of that spend.”

The GMD/CEO added that Dangote Cement Plc would continue to ensure alignment of its corporate social responsibility with its strategic business initiatives and will continue to evaluate its pricing regime in Nigeria’s best interest.

Meanwhile, the timing of the initiative has confounded industry watchers, who say that from experience, the cement market is on the verge of entering the accelerated demand phase as the raining season is tapering and the dry season which provides the opportunity for increased construction and building activities is setting in.


http://www.vanguardngr.com/2014/11/dangote-slashes-cement-price-n1000-per-bag/

Who una dey deceive

We enjoy #1000 for 4 months...and after february 2015 it goes back to #2000...lol...campaign strategy...Nigerians don wise pass those tricks now.
Jonathan try again.

Effective from when? What s the catch in this reduced price? Hmmmmmmm! I smell 'rotten' fish!

The fact is cement is overpriced in Nigeria and so someone like Dangote can easily crash the price without it affecting his business.

Housing boom anyone ?

Let me no when the price of land in banana island is #100,000 then I will buy the cement.

this news seems too good to be true, i pray it is true

and they say gej no go rule again?
gej till buhari dies

And later he would increase at will

All that glitters is not gold.

opiaoku:
and they say gej no go rule again?
gej till buhari dies

.ESEEEEEEEEEEH

opiaoku:
and they say gej no go rule again?
gej till buhari dies

You see how Low you are? I pity you

dangote too av joined politics not as business as usual but as political strategy.after d increment of cement before he know reduced d price Cos' people are not patronise his product again. I hope is not using this to enable Gej to campaign for us come January Cos' these are fg strategy to brief d public about our economy .PDP av loose this one again Cos' we d masses are more elaborate than d so called politician nothing can shift our stand Gej and his excos is disappointed in Feb 14 2015 polls.we are not bribe with rice,kerosene and money but will are moved by infrastructure development.

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moneybag100:
We enjoy #1000 for 4 months...and after february 2015 it goes back to #2000...lol...campaign strategy...Nigerians don wise pass those tricks now.
Jonathan try again.

I was carried away.... ♈ōϋ actually brought me back to realise what was happening......

very goood news indeed, both for Nigerians and the Construction/Housing industry if sustained....


All hail GEJ joor

Johnnyessence:
dangote too av joined politics not as business as usual but as political strategy.after d increment of cement before he know reduced d price Cos' people are not patronise his product again. I hope is not using this to enable Gej to campaign for us come January Cos' these are fg strategy to brief d public about our economy .PDP av loose this one again Cos' we d masses are more elaborate than d so called politician nothing can shift our stand Gej and his excos is disappointed in Feb 14 2015 polls.we are not bribe with rice,kerosene and money but will are moved by infrastructure development.

please recheck what u just wrote

If the price can be maintained,then its good news.

If its for a short period,then wholesalers can catch on the opportunity..

Either way,its still favorable to the people at least in the short run.

[size=15pt]GOODLUCK to everybody










No vacancy in Aso Rock
GEJ till 2019[/size]

talktimi:
The fact is cement is overpriced in Nigeria and so someone like Dangote can easily crash the price without it affecting his business.

Housing boom anyone ?

You have said it all my bro, Nigerians suffered most from this sector during the time of OBJ when Cement were abysmally overpriced for N2,300-N2,500 (the Naira equivalent globally then was hovering between N700-N800). I see cement prices crashing further because we have the materials in bulk

all thanks to emerging competition in the cement industry, monopoly is a sin.

Wow, nice one Mr Dagote SMH for some comment here,,,,,, anyway

Off topic: See my signature, its my birthday
https://www.nairaland.com/1979001/birthday-3rd-november#27677850

So this greedy man is making up to 60percent profit on each bag of cement? And retailer and wholesaler are making 3percent? This country is doom

Very nice development. But it will neither decrease the current cost of renting a house nor buying one. If you can't afford to but a house yet, it changes nothing. It only favours those that are currently building or the ones who can already afford it.

hopeless ppl hv called it politics bt for me I'm going to start to devlp my land immidiately after Xmas if its true it has crashed. Pals leave gej alone n cash in on d opportnty.

opiaoku:
and they say gej no go rule again?
gej till buhari dies

If ur wife gives birth am sure u will still credit it to GEJ performance.

Any Dangote Cement distributor here? If you are real...PM...for some order asap....




***Politics aside....if the wrong people choose to 'bribe' Nigerians this time: take the bribe because it is our money and vote the right candidate *****





.......Please if you are NOT a Dangote cement distributor, or can't deliver reasonable quantity at short notice to......... don't bother to pm please because we will do our checks on you before we deal with you.

I'm not sure but I think I smell. Fresh Air.
Cement 1k? Kai!! Uncle GEJ na boss o.
GEJ till 2019

I think people need to be patients for some several months to how real is this. Dangote has been known to crash prices of items several times in the past run it's competition out of business. After the aim is achieved prices now to up.

I'm not saying that's what's going on now, but one can never tell bases on the man's antecedents.

But of course, anyone that has a project to do better buy as many cements as they can when the price reduction is actualized.

This will also create some problem for sellers who have large stock of cement for sale.

this news is too good to believe. well am keeping my fingers crossed.