Why price of cement is high – Dangote

    0
    71

    The management of Dangote Cement Plc. says that the price of a bag of cement from its factories and plants in Obajana and Gboko is N2,450, and N2,510 at Ibese.

    Mr Devakumar Edwin, the company’s Group Executive Director in charge of Strategy, Portfolio Development and Capital Projects, stated this in a statement he made available to newsmen in Lokoja on Tuesday.

    He said that these were the prices of cement which included the Value Added Tax (VAT) as at April 12.

    According to him, the clarifications become necessary in view of the recent insinuations that the company sells cement in Nigeria at higher prices relative to how much it sells it in other countries, particularly in Ghana and in Zambia.

    ” 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,” Edwin explained.

    He said that though, the company has direct control over its ex-factory prices, it cannot control the ultimate price of cement when it gets to the open market.

    Edwin frowned at what he called “intentional misinformation ” that Dangote was selling its cement at higher prices in Nigeria relative to other African countries at the expense of Nigerians.

    ” This allegation is false, misleading, and unfounded,” he said.

    He attributed the high cost of cement in Nigeria to the global rise in demand for cement as a result of the COVID-19 crisis.

    ” Nigeria is no exception as a combination of monetary policy changes and low returns from the capital market has resulted in a significant increase in construction activity.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here