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- An investigation has uncovered how much Dangote sells its cement in the West African country of Benin Republic
- Findings reveal that the company uses the country as a transit route to its depots in Togo
- However, it sells a 50kg bag of cement in the Benin Republic at N6,216 and not N1,500 as alleged
The allegation that went viral a fortnight ago on social media that Dangote Cement was selling a bag of 50kg cement in Nigeria at an excessive rate of N5,200, while it sells the quantity in Benin Republic at N1,500 is untrue.
While the company does not export the product to Benin Republic, the country serves as a transit route to Togo.
Credit: Bloomberg/Contrinutor
Source: Getty Images
Dangote Cement sells for N5,200 per bag in Benin Republic
Findings showed that the average price of a 50kg bag of cement in the West African country is N6,216, about 4,200 CFA.
ThisDay reports that in cement depots in Akpakpa Ghandi and Ebile Rouse sections in Cotonou, the Benin Republic capital, the price of a 50kg bag of cement is 4,000, 4,100 or 4,200 CFA.
Additionally, due to transport and logistics costs, the same quantity of cement goes for N4,500 CFA, about N6,660 in Parakau, the largest city in the northern part of Benin Republic.
The development indicates that the average prices of 50kg bags of cement in Cotonou and Parakou were N6,068 and N6,660, respectively, at the black market rate of 1.00 CFA to N1.48.
Cement price determinants in Benin Republic
The cement price in the Benin Republic is determined by price fixing, 51% duty and other taxes imposed by the government on imported cement to encourage local production.
Reports say the leading cement brands in the Benin Republic are Cimbenin Buffle, Ciment Bouclier, Nouvelle Cimenterie du Benin, and Ciment Diamant, which are produced in the country.
The brands have 32.5R grades in contrast to Dangote Cement’s 42.5R quality that the company sells in Nigeria.
Dangote debunks viral report of reducing cement price in Benin Republic
On August 27, 2023, an online publication stated that Nigerians berated billionaire businessman and Chairman of Dangote Group, Aliko Dangote, on social media for selling a bag of cement for N5,200 in Nigeria while he sells the same product for N1,500 in Benin Republic.
The spokesman for the Dangote Group, Tony Chiejine, debunked the story in a telephone call with Legit.ng. He revealed that the publication and social media merely regurgitated 2017 allegations against the Group.
Chiejine said:
“What you have is people taking money to write biased and untrue stories. That allegation is old. They merely refurbished it to make it look new.”
The cement firm stated that a bag of cement from its factories in Nigeria as of August 28, 2023, was about N4,010 in Okpella and N4,640 in Ibese, Obajana, and Gboko.
It added that transportation and delivery location costs might increase the prices to between N5,000 and N5,300 per 50kg bag.
The Managing Director of Dangote Cement, Arvind Pathak, said it is essential to differentiate between ex-factory and retail prices.
Pathak said the company is focused on quality delivery at the best price despite inflation in Nigeria.
BUA Chairman Abdul Samad Rabiu announces plan to drop cement price in Nigeria
Legit.ng reported that Abdulsamad Rabiu, the chairman of BUA Cement Plc, has expressed confidence that a drop in cement prices would result from the completion of the company’s two new factories by the end of the year.
Rabiu said this during a press conference that was held alongside the company’s seventh annual general meeting on Thursday, August 31, 2023, in Abuja.
Recall that Legit.ng earlier reported that Dangote Cement Plc clarified that its cement pricing aligns with, or even falls below, the prevailing prices along the West African coastline.
Source: Legit.ng
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