Dangote Reduces Cement Price To N1,000

Dangote Cement Plc has announced a 41 per
cent reduction in the prices of cement, with the
different grades of the essential commodity
now selling for between N1,000 and N1,150,
exclusive of Value Added Tax.             
In the new price regime announced on Sunday
by the Group Managing Director, Dangote
Cement, Mr. Devakumar Edwin, a 50kg bag of
the 32.5 cement grade will now sell for
N1,000, while the higher 42.5 grade is to sell
for N1,150 per bag instead of the current
N1,700 that both grades were going for.
Edwin said in a statement that the move was
in line with the company’s commitment to the
nation, especially the need for the
development of infrastructure and boost
ongoing efforts to reduce the near 20 million
housing deficit in Africa’s largest economy.
“We recognise the need for a dramatic
increase in the 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 own
control as part of our contribution to the
transformation agenda of the President
Goodluck Jonathan administration and the
attainment of key milestones in the Millennium
Development Goals,” he was quoted as saying.
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 had risen from less than two million
metric tonnes per annum to about 38 million
metric tonnes per annum currently.
During the period, over $20bn has been
directly and indirectly injected into the Nigerian
cement industry with Dangote Cement Plc
accounting for 60 per cent of that expenditure.
Edwin also said that Dangote Cement would
continue to ensure the alignment of its
corporate social responsibility with its
strategic business initiatives, and would
continue to evaluate its pricing regime in the
country’s best interest.
According to the statement, stakeholders have
commended the price reduction and say the
cement market is entering the high demand
phase as the dry season, which provides the
opportunity for increased construction and
building activities, is setting in.
In compliance with the directive of the
Standards Organisation of Nigeria on the
various grades of cement and their prescribed
uses, Dangote Cement recently inaugurated its
brand of the premium 32.5 grade, which has
been restricted to plastering use only.
The largest cement producer in Nigeria noted
that the move was to develop a full bouquet of
cement types to meet the varying needs of
consumers for the different purposes.
The company produces the 42.5 grade for
column casting, block making, decking and
other general purpose construction works that
require high strength, while the 32.5 grade is
for rendering or plastering.
The company also produces on demand the
52.5 grade for specialised construction of high
strength structures such as bridges, flyovers
and sky scrapers, among others.
Dangote Cement said in compliance with the
SON standard for cement quality and
packaging, the lower 32.5 grade would be
clearly labelled in order to minimise the
incidence of building collapse arising from the
misapplication of the different grades of
cement....Punch.                           Thank God I can start building my own house now.