Management of Dangote Cement Plc has said yesterday that the price of its product per bag from the factory was between N2,450 in Obajana and Gboko, and N2,510 in Ibese, inclusive of VAT.
The clarification came against the backdrop recent insinuations that the company sells cement in Nigeria at significantly higher prices relative to other countries, particularly Ghana and Zambia.
Dangote’s Group Executive Director, Strategy, Portfolio Development & Capital Projects, Devakumar Edwin, who gave the clarification at an interface with journalists in Lagos, revealed that 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.
“Over the past 15 months, our production costs have gone up significantly. About 50% of our costs are linked to USD so the cost of critical components like: gas, gypsum, bags, and spare parts; has increased significantly due to devaluation of the Naira and VAT increase. ‘’Despite this, DCP has not increased ex-factory prices since December 2019 till date while prices of most other building materials have gone up significantly.
‘’We have only adjusted our transport rates to account for higher costs of diesel, spare parts, tyres, and truck replacement. Still, we charge our customers only N300 – 350 per bag for deliveries within a 1,200km radius.
‘’We have been responsible enough not to even attempt to cash in on the recent rise in demand to increase prices so far’’, Devakumar said.