Slash In Dangote Cement Price Will Take Some Time – Distributors

Some distributors of cement said on Tuesday it would take some time for the price of Dangote cement to be N1,000 per 50kg of cement in spite of the company slashing the price of the product.

The distributors said that they had yet to dispose of the old stocks and that it would be difficult to sell at Dangote’s recommended price.

Mr Ben Ohaegbu, a distributor of cement in Lagos, said that the price of Dangote cement in his store had not changed.

“I got my stock of Dangote cement long before the announcement of the price slash.

“The slash will be implemented as soon as I get a new stock from the company.

“For now, the price of 50kg of cement is N1,700 and it remains until I replenish my stock,” Ohaegbu said.

Another distributor, Mr Alani Adeboyejo at Ijaye-Ojokoro in Ifako-Ijaye Council Area, Lagos, also commended the price slash for Dangote cement.

He however said that the price of 50kg of cement was still N1,750 in his store, pending when he received a new stock from the Dangote cement company.

He noted that the price slash would reduce the demands for other brands of cement in the market.

“Customers will prefer to buy affordable products than go for expensive ones,” he said.

Mr Tony Chiejina, Head Corporate Communications, Dangote Group, said that the slash was expedient as the group had increased its production capacity.

According to Chiejina, Dangote Group has increased its production capacity from two million metric tonnes to 13 million metric tonnes in the last four years.

“Our increased capacity has opened up opportunities for us to accommodate the needs of more Nigerians to build more affordable homes.

“Our company is not concerned with profit-making alone, we are also interested in creating value for our customers at a reduced price,” he said.

Chiejina noted that the price slash which takes effect immediately, was also the company’s way of supporting the Federal Government in its effort to cater for the housing needs of Nigerians.

Mr Muda Yussuf,  Director-General, Lagos Chamber of Commerce and Industry (LCCI), said the slash would create healthy market competition.

“This will force other manufacturers of cement in the country to review their cost price as well.

“It is for the benefit of the end users; the lower the price of a commodity, the better for the consumers.

“This, in the long run, will result in further growth of the economy,” he said.

Mr Kenneth Uzor, Managing Director, Genesis Property Development Company, said that the price slash would create better opportunities for the Real Estate sector to thrive.

“The cost of building a house in Nigeria, especially in the urban centres, have been on the increase.

“The price of cement and other building accessories have been far from the reach of the masses.

“Nigerians can hardly afford decent homes because of the high cost of building materials,” he said.

Mr Adeoti Oyelakin, Partner, Oyelakin and Sons, a law and estate firm, said that Nigerians often berated exorbitant rents in the urban areas without considering the cost of building materials.

Oyelakin noted that the price slash of cement, the most essential factor in the building of houses, would in turn reduce the cost of renting houses.

He also said the slash would encourage many Nigerians, especially those who had abandoned their housing projects to continue.

The Group Managing Director and Chief Executive Officer, Dangote Cement Plc, Mr
Devakumar Edwin, had on Nov. 27, announced a 40 per cent reduction in the price of the company’s cement.