The Dangote Group has said that the prices of its various classes of cement products still remain unchanged despite the devaluation of the naira by the Central Bank of Nigeria (CBN).
This is as the conglomerate has moved to further increase the capacity of its cement production in order to sort the issue of scarcity and drive down the price.
This disclosure was made by the Sales Marketing Director of Dangote Group, Rabiu Umar while having a chat with the press shortly after an interactive session with the building industry professionals in Kano.
Umar said that the group had built a new line at Obajana to address the current scarcity of cement products in the country adding that the current scarcity of cement has led to the sharp increase in prices, which are being determined by the forces of demand and supply.
What the Dangote Group top official is saying
Umar said that Dangote Group had taken some steps to address the rising prices of cement across the country adding that the company had to slow down on the export of its product to focus on domestic supply to meet local demand.
He said, ‘’We in the past had an opportunity to export our cement but had to slow down, just to meet local demand. So, if you ask me, we have five different concrete actions that Dangote Group has taken to address skyrocketing prices of cement. And we believe that these actions will have a very positive effect of bringing down the prices of cement.’’
Umar also said that the company had rolled out 2,000 trucks into the market to further ease the distribution of its cement products, in order to force down the price.
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It can be recalled that about 2 weeks ago, Dangote Cement Plc had announced that it was going to increase production to boost supply across the country in a move seen as part of the plans to close the demand gap and drive down the price of cement.
This is coming after Dangote cement frowned at intentional misinformation or demarketing, allegedly sponsored by some individuals, with claims that it is selling its cement at higher prices in Nigeria relative to other African countries at the expense of Nigerians.
Similarly, the second-largest cement producing company in Nigeria, BUA Cement Plc, had also refuted claims about any purported increase in the ex-factory price of its cement by N300 per bag.
BUA rather blamed the huge difference between the ex-factory prices of cement and the retail prices of cement on the distributors and retailers who are taking advantage of increased cement demand and insufficient supply to make maximum profits.