Dangote Speaks on Reported Plan To Slash Cement Price From N5,500 to N2,700 on October 1

Dangote Speaks on Reported Plan To Slash Cement Price From N5,500 to N2,700 on October 1

  • There are reports that Dangote Cement will be reducing the price for a bag of cement from N5,000
  • The new price is reported to kick off on October 1 and will mirror BUA Cement's recent decision to slash its price
  • Legit.ng reached out to Dangote group to confirm the rumoured new price for a bag of cement

Dangote Group, the parent company of Dangote Cement, has denied reports that it plans to reduce cement prices by 50.9 percent on October 1, 2023.

In various messages shared on multiple social media platforms, including WhatsApp groups, Dangote Cement was reported to have planned to reduce the price of cement

Dangote cement price
Most of Dangote's fortune is derived from his 86% stake in publicly traded Dangote Cement. Photo credit: Tom Saater
Source: Getty Images

The message reads:

"Dangote crashes cement price from N5500 to N2700. Aliko Dangote has announced the new price of cement crashed by 50%, from October 1st, from N5500 to N2700."

Read also

Marketers sell BUA Cement above N5,000 despite announcement to sell a bag for N3,500

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Dangote reacts

Speaking exclusively with Legit.ng, Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Industries Limited, said the report around price reduction is false.

His words:

"The report is fake and not from us"

How Rabiu plans to reduce cement price

The rumoured planned reduction in the price of Dangote cement comes on the heels of the recent announcement by Abdul-Samad Rabiu, the Chairman of BUA Group.

Rabiu had revealed his company's intention to lower cement prices in Nigeria from the current N5,500 to a range of N3,000 to N3,500.

He spoke after meeting with President Bola Tinubu on Friday, September 15, 2023.

According to the billionaire, the price reduction would be implemented after two new cement plants are inaugurated by the end of the year or in early 2024.

Read also

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Speaking to journalists, he said:

“By the time these lines are commissioned, BUA Cement will produce about 17 million tonnes per annum. And with that, we intend to bring down the cement price from its current level of N5000 or N5500 per bag to maybe N3000 to N3500 per bag.”

He stated that with increased production, his company would flood the market with cement, thereby reducing the prices paid by Nigerians.

Dangote Cement, MTN, 8 Other Companies Lose Over N630bn in 6 Months After Tinubu, CBN's Naira Decision

In another report, Legit.ng revealed that several companies listed on the Nigerian exchange lamented significant foreign exchange (FX) losses due to the devaluation of the naira.

On June 14, 2023, the Central Bank of Nigeria (CBN), on Tinubu's instruction, announced the naira's floating.

This gave room for market forces to determine the exchange rate.

The decision has led to a severe depreciation of the naira against different foreign currencies, taking a severe toll on the financials of companies in Nigeria.

Source: Legit.ng

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