Dear Naira Landers.

I'm curious about a post I saw on Facebook about cheaper Dangote cement in Ghana and elsewhere when raw materials are sourced mostly from the same place. The post claims the NGN2600 per bag of cement in Nigeria is as a result of it's dubious economy

Kindly post in this thread any country other than Nigeria where Dangote Cement is distributed and the price in Naira equivalent.

Thanks

That is Nigeria for you, no price regulation no control.

Once you give our govt their own, you can milk the masses as you like without any molestation.

We pay twise the prise of almost everything in Nigeria.

It is more expensive to produce a bag of cement in Nigeria.

Reasons are obvious:

* Too many bottlenecks
* Corruption and bribery (you can't transport your goods from Kano to Lagos by road without giving bribes to at least 30 security operatives.
* Electricity cost
* Logistics, cost of fuel
* Double/triple taxation (with omo-onile)
* Bad economy and inflation
* Etc.

project4OO:

It is more expensive to produce a bag of cement in Nigeria.

Reasons are obvious:

* Too many bottlenecks
* Corruption and bribery (you can't transport your goods from Kano to Lagos by road without giving bribes to at least 30 security operatives.
* Electricity cost
* Logistics, cost of fuel
* Double/triple taxation (with omo-onile)
* Bad economy and inflation
* Etc.

Those bottle necks don't apply to Dangote. He generates his own electricity which is way cheaper than what it cost the federal government to generate same amount of power. Fuel is still relatively cheap compared to other countries with cheaper prices for cement.

Goodluck trying to get Dangote to pay double tax with Omonile. A man that made about #1trillion from 2010-2015 and paid just 12billion in tax as a result of the pioneer status government keeps granting him. Even, when the economy was not this bad he had always been offered Fx at official rate while others go to the black market to source for Fx. Dangote that still pays #40k salary at his factories.

No security agent can demand bribe not to talk of seizing Dangote's truck. We all know this. Bringing in his equipments he pays almost nothing to our custom.

How about the mineral resources he gets for free? For instance, a ton of limestone is sold for about $30 or more in the international market, but, he pays just #25 to the government as Royalties.

Note: His quality of cement can be sourced from the international market at less than $5.

The only reason is that he owns over 60% of the market. He owns us. He will dictate the price.

Johnrake69:


Those bottle necks don't apply to Dangote. He generates his own electricity which is way cheaper than what it cost the federal government to generate same amount of power. Fuel is still relatively cheap compared to other countries with cheaper prices for cement.

Goodluck trying to get Dangote to pay double tax with Omonile. A man that made about #1trillion from 2010-2015 and paid just 12billion in tax as a result of the pioneer status government keeps granting him. Even, when the economy was not this bad he had always been offered Fx at official rate while others go to the black market to source for Fx. Dangote that still pays #40k salary at his factories.

No security agent can demand bribe not to talk of seizing Dangote's truck. We all know this. Bringing in his equipments he pays almost nothing to our custom.

How about the mineral resources he gets for free? For instance, a ton of limestone is sold for about $30 or more in the international market, but, he pays just #25 to the government as Royalties.

Note: His quality of cement can be sourced from the international market at less than $5.

The only reason is that he owns over 60% of the market. He owns us. He will dictate the price.

Your contribution is very informative. What is the place of consumer protection agency on this?
It means goverment need to regulate the cement market. If Cement price is reduced, more individuals would own houses and the current national housing deficit will be partly addressed. Sustained high prices of Cement where there's possibility that it could have been sold cheaper means goverment is not committed to resolving the housing deficit Nigeria is facing

I am quite interested in this thread. Basically, there are several alternatives.... The problem is awareness. Plus I don't even know how widely available they are. The alternatives cost about 1500 a bag.... So, if he is ripping us off, we just have to buy others

smatnemo25:
I am quite interested in this thread. Basically, there are several alternatives.... The problem is awareness. Plus I don't even know how widely available they are. The alternatives cost about 1500 a bag.... So, if he is ripping us off, we just have to buy others

What's the name of the alternatives?

I still believe all these still goes down to the lack of consumers protection regulatory body. Growing up as a boy-teenager - adult, consider the sachet beverages as example I think the present gross mass is 12-18 gram, but then it used to be 28/30 gram does anyone say anything about it? No yet their prices has increased though value and quantity has reduced. Consider the tin evaporated milk same but you won't know if you're not observant, I got to know about the later because I had some tin milk left at home so I got some more only to discover that power as changed hand. You need to see the way I took both tins comparing... The later I just talked about is less than 2 years o. Lots of things as changed quality is gone, quantity is gone now we have scrap everywhere, and no one will talk cos no one cares, all we are after is that once I can afford the one I need for myself then let others 'Die'. It shouldn't be

Hmm

kunleweb:
Hmm

That is the truth, no one cares about what next door fellow is passing thru again. All is make I chop Belleful, Keep some for tomorrow then let other sleep with empty stomach. Is that suppose to be? No