Landlords and contractors how do u see it.
LEADING cement manufacturer, Dangote
Cement Plc, weekend, announced drastic
reduction of the prices of its cement.
The new price regime announced by the Group
Managing Director/Chief Executive Officer, GMD/
CEO, of Dangote Cement, Mr. Devakumar Edwin,
pegged the Dangote 32.5 cement grade at N1,000
per 50 kg bag, while the higher 42.5 grade would
sell for N1,150 per bag.
A statement by the company at the end of a
management meeting said, however, that the new
prices were exclusive of the Value Added Tax,
VAT, representing about 40 per cent discount on
the prevailing market price of the product
currently sold for N1,700 irrespective of the
grade, across the country.
Edwin said the move was in line with the
company’s commitment to the nation’s dire need
for the development of infrastructure and to
boost the federal and state government’s ongoing
effort to reduce the near 20 million housing deficit
in Africa’s largest economy.
He said, “we recognize the need for an increased
rapid response to the huge infrastructure and
housing deficit in the country, and one of the
ways of addressing the issue is bringing the price
of building materials down to much more
affordable levels especially cement which is
within our control as part of our contribution to
the transformation agenda of the Goodluck
Jonathan administration and the attainment of
key milestones in the Millennium Development
Goals, MDGs.
“Since the commencement of the implementation
of the backward integration policy for cement in
the country over 12 years ago, the local
production capacity of the product rose from less
than three million metric tonnes per annum to
about 38 million metric tonnes per annum. During
the more than 12-year period of the backward
integration policy, nearly $20 billion has been
directly and indirectly injected into the Nigerian
cement industry with Dangote Cement Plc
accounting for 60 per cent of that spend.”
The GMD/CEO added that Dangote Cement Plc
would continue to ensure alignment of its
corporate social responsibility with its strategic
business initiatives and will continue to evaluate
its pricing regime in Nigeria’s best interest.
Meanwhile, the timing of the initiative has
confounded industry watchers, who say that from
experience, the cement market is on the verge of
entering the accelerated demand phase as the
raining season is tapering and the dry season
which provides the opportunity for increased
construction and building activities is setting in.
Source Vanguard.
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