We’re Losing Millions Of Dollars Selling Cement In Nigeria – Dangote

Dangote Group says its cement is cheaper in Nigeria than in Ghana and that it is losing dollar earnings focusing on the Nigerian market.

“To ensure that we meet local demands, we had to suspend exports from our recently inaugurated export terminals, thereby foregoing dollar earnings,” he said, adding that the company also reactivated its 4.5 million ton capacity Gboko plant.

“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,” it claimed in a statement amid claims the price of Dangote’s cement is higher in Nigeria than elsewhere.

Dangote Cement noted that the price of a bag of cement from its factories and plants in Obajana and Gboko was N2, 450 and N2, 510 at Ibese, including the Value Added Tax (VAT) as of April 12.

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

According to him, the clarifications become necessary given the recent insinuations that the company sells cement in Nigeria at higher prices relative to its sales in other countries, particularly in Ghana and Zambia.

Though the company had direct control over its ex-factory prices, Mr. Edwin said it could not control the cement’s price in the open market.

“This is all in a bid to guarantee that we meet demands 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 per cent of our costs are linked to the USD (dollar), so the costs of critical components such as gas, gypsum, bags, and spare parts; have increased significantly due to the devaluation of the Naira and VAT increase.

“Despite this, Dangote Cement has not increased ex-factory prices since December 2019 to date while prices of most other building materials have gone up significantly,” he said.

(NAN)