Encomium
– Group Head, Corporate Communication, Dangote Group, Tony Chiejina
CONTROVERSY has been trailing the new price of cement announced by Dangote Group, a couple of weeks ago.
But amidst the confusion over the real cost of the products in the market, officials of Africa’s largest cement manufacturers have now offered timely and useful clarifications.
Cement marketers have also recounted their experience, while explaining why it would take them a long time to sell cement at N1,000!
Meanwhile, ENCOMIUM Weekly can authoritatively report there is no part of the country Dangote Cement is sold at N1,000! And the reason is not just that cement dealers are yet to buy new products. The fact is there is no way they would sell at that factory price after paying tax and other costs associated with product transportation and storage, among other issues related to politics of cement distribution in Nigeria.
Multiple sources (not from Dangote Group) also squealed there are indeed three categories of cement. That is the 32.5 grade, 42.5 grade and 52.5 grade. All of which have different prices and serve distinct purposes.
Curiously, a staff of the customer care unit of Dangote Cement who simply introduced herself as Ebere confirmed ENCOMIUM Weekly’s investigations. She informed us there are indeed different grades of cement. According to her, there are the 32.5 grade which is only for flooring and plastering and 42.5 grade used for more serious construction work.
Interestingly, the 32.5 grade, according to Dangote Cement, is not even available. And when in stock would be sold at N1,050 (with VAT added). The 42.5 grade is officially sold at N1,308! What this suggests is that none of Dangote Cements is sold for N1,000!
ENCOMIUM Weekly also sampled the opinion and reaction of cement marketers who confirmed they are yet to buy or sell the much talked about N1,000 Dangote Cement. Unfortunately, all of them are ignorant of the dynamics of the new price regime and product categorization.
ALHAJA FATIMOH (OGUDU)
“Yes, I have heard the price has reduced to N1,000 but I don’t expect them to be making noise about it everywhere because they don’t give us at that price. I still buy it at N1,350, is it possible to sell it at N1,000?”
FEMI OJO (IYANA IPAJA)
“We are just hearing about it, I have not seen anybody selling it at that price. The last supply I got was at N1,300 and it is from one of their marketers.”
MRS. ABIDEMI AMOO
“Yes, I have heard but I still have old products in stock and I am still selling at the old price.”
NIYI AKINYELE
“Most people I know don’t sell at N1,000. It is what you buy that you sell, I don’t even get it at N1,000. I am still selling at the old price.”
- OLAYEMI EZEKIAH (IPAJA)
“I still have old stock, I actually heard price has come down. I hope to benefit from the reduction in the price too.”
ALHAJA SEKINA (AJUWON)
“Yes, I have heard that Dangote has reduced its cement price, but I am not selling it at that price because I still have old stock. I still sell at N1,700.”
Reacting to the allegation that Dangote Cement is sold above N1,000, Mr. Tony Chiejina, Group Head, Corporate Communications, Dangote Group, explained that Dangote Cement remains N1,000 at their various plants. He went further to explain that the current standardization of cement has necessitated the need to grade products. Chiejina who acknowledged that Value Added Tax (VAT) may affect post factory price of their products, insisted the reduction in the cost of Dangote Cement is not marginal but unprecedented.
“There’s no going back on our N1,000 price regime which is the most competitive in the market at the moment,” Chiejina maintained but declined further comment.
More independent investigations of our reporters, however, revealed that the problem of cement pricing is actually traceable to distributors who add post factory prices arising from VAT, transport and logistics.
We scooped that individuals are being, however, encouraged to go directly to the company’s main distributors to make purchases, while Dangote Group is making efforts to make products available to Nigerians.
It is also obvious that the prices of cement would indeed come down in no distant time given the fact that the 42.5 grade would no longer be sold at N1,700/N1,800 since Dangote has reduced it to about N1,200.
All things being equal, it’s a win-win time for Nigerians who would buy the 32.5 grade of cement at a little above N1,000 and the higher quality 42.5 grade far below the original price of N1,700/N1,800.
Till then, cement price would remain the same, especially now the less expensive 32.5 grade, that was only introduced weeks back, is scarce in the market.
- UCHE OLEHI and SHADE WESLEY-METIBOGUN
