Dangote Replies Umahi, Others Over High Cost Of Cement

Dangote Cement has responded to complaints among Nigerians that its cement price is too high.

The company owned by Africa’s richest man Aliko Dangote has been trenchantly criticized for selling a bag of cement at a higher price in Nigeria, while it offers the same product at lower prices in other West African countries.

For instance, reports surfaced recently that the price of a bag of Dangote Cement in Benin Republic is as low as N400 while in Nigeria the prices vary from N500 and above.

Last week, Dave Umahi the Minister of Works lamented the cost of cement in the country, saying imported cements are way cheaper.

The minister said he would dialogue with Dangote, the biggest producer of the product in the country, and other cement producers on how they can bring down the price.

He stated, “I’m going to be running figures with them (cement manufacturers) to check the cost of cement if we import it and the cost they are giving us here.

“A lot of contractors have complained that it is cheaper to import, but we are not allowed to import cement because we have to help the cement industries, but they also have to be reasonable with us if we are going to be patronising them.”

Responding in a statement on Monday, Dangote said the price of the product in Nigeria is not higher than what is offered in neighboring countries.

According to Dangote, “This clarification was made in view of recent misinformation that the company sells cement in Nigeria at significantly higher prices relative to other countries, particularly, the Republic of Benin, and other neighbouring countries.”

The company in its breakdown said the price of a bag of cement from its factories across Nigeria (as at 28th August 2023) is N4,010 in Okpella and N4,640 in Ibese, Obajana, and Gboko. Including transportation costs and the location of delivery, prices could range between N5,000 to N5,300 per bag.

The high cost of building materials, particularly cement in the country have hampered many Nigerians form owning their own homes, analysts say, adding that Dangote and other cement producers have ensured that its price remains high despite series of promises in the past to bring it down.