Dangote, chairman of Dangote group has said that the cement division of its company is losing a huge amount of money to sell its products in Nigeria, since the price is cheaper in the country than any other place.
“To ensure that we meet local demands, we had to suspend exports from our recently inaugurated export terminals, thereby foregoing dollar earnings.”
“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.”
The company stated that the price of a bag of cement from its factories and plants in Obajana and Gboko was N2,450 and N2,510 at Ibese, including the Value Added Tax (VAT) as of April 12.
In a statement by Devakumar Edwin, the company’s Group Executive Director in charge of Strategy, Portfolio Development, and Capital Projects in Lokoja on Tuesday, the company will sell cement in Nigeria at higher prices relative to its sales in other countries, particularly in Ghana and Zambia.
This is all in a bid to guarantee that we meet demands and keep the price of cement within control in the country. Over the past 15 months, our production costs have gone up significantly.
“About 50 per cent of our costs are linked to the USD (dollar), so the prices of critical components such as gas, gypsum, bags, and spare parts; have increased significantly due to the devaluation of the Naira and VAT increase.
“Despite this, Dangote Cement has not increased ex-factory prices since December 2019 to date while prices of most other building materials have gone up significantly.”
Source: Sahara Reporters.
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