Some distributors of cement said on Tuesday it would take some time for the price of Dangote cement to be N1,000 per 50kg of cement in spite of the company slashing the price of the product.
The distributors said that they had yet to dispose of the old stocks and that it would be difficult to sell at Dangote’s recommended price.
Mr Ben Ohaegbu, a distributor of cement in Lagos, said that the price of Dangote cement in his store had not changed.
“I got my stock of Dangote cement long before the announcement of the price slash.
“The slash will be implemented as soon as I get a new stock from the company.
“For now, the price of 50kg of cement is N1,700 and it remains until I replenish my stock,” Ohaegbu said.
Another distributor, Mr Alani Adeboyejo at Ijaye-Ojokoro in Ifako-Ijaye Council Area, Lagos, also commended the price slash for Dangote cement.
He however said that the price of 50kg of cement was still N1,750 in his store, pending when he received a new stock from the Dangote cement company.
He noted that the price slash would reduce the demands for other brands of cement in the market.
“Customers will prefer to buy affordable products than go for expensive ones,” he said.
Mr Tony Chiejina, Head Corporate Communications, Dangote Group, said that the slash was expedient as the group had increased its production capacity.
According to Chiejina, Dangote Group has increased its production capacity from two million metric tonnes to 13 million metric tonnes in the last four years.
“Our increased capacity has opened up opportunities for us to accommodate the needs of more Nigerians to build more affordable homes.
“Our company is not concerned with profit-making alone, we are also interested in creating value for our customers at a reduced price,” he said.
Chiejina noted that the price slash which takes effect immediately, was also the company’s way of supporting the Federal Government in its effort to cater for the housing needs of Nigerians.
Mr Muda Yussuf, Director-General, Lagos Chamber of Commerce and Industry (LCCI), said the slash would create healthy market competition.
“This will force other manufacturers of cement in the country to review their cost price as well.
“It is for the benefit of the end users; the lower the price of a commodity, the better for the consumers.
“This, in the long run, will result in further growth of the economy,” he said.
Mr Kenneth Uzor, Managing Director, Genesis Property Development Company, said that the price slash would create better opportunities for the Real Estate sector to thrive.
“The cost of building a house in Nigeria, especially in the urban centres, have been on the increase.
“The price of cement and other building accessories have been far from the reach of the masses.
“Nigerians can hardly afford decent homes because of the high cost of building materials,” he said.
Mr Adeoti Oyelakin, Partner, Oyelakin and Sons, a law and estate firm, said that Nigerians often berated exorbitant rents in the urban areas without considering the cost of building materials.
Oyelakin noted that the price slash of cement, the most essential factor in the building of houses, would in turn reduce the cost of renting houses.
He also said the slash would encourage many Nigerians, especially those who had abandoned their housing projects to continue.
The Group Managing Director and Chief Executive Officer, Dangote Cement Plc, Mr
Devakumar Edwin, had on Nov. 27, announced a 40 per cent reduction in the price of the company’s cement.
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We love Dangote, he should contest for president, we will vote him in straight away
ReplyDeleteDistributors who claim to have old stock will keep their stock while people buy new stocks elsewhere at customer-friendly price
ReplyDeleteYeye distributors. When the price of cement was going up, did you sell at the old price? Did you share your profits with your customers? Now that the price is slashed, you remember the stock price! Fools. Continue with the old price, let consumers/customers who can afford it buy from you and those who cannot buy from others who are ready to sell at the new rate.
ReplyDelete@November 4, 2014 at 8:10PM
ReplyDeleteThats were we got it wrong. That dangote is one to reckon with as an industrialist does not make him a better politician.Pls leave this man in his sphere..he is d best in it.dont tweak him
If the price review was upward, the distributors would have started the implementation with immediate effect. But you can keep your old stock or better still use them yourself. We'll buy from people who have new stock @ #1000 only!
ReplyDeletei commend Dangote for the great feat! Welldone sir!
ReplyDeleteHowever, no business owner wants to make loss. I agree with the distributors that have old stocks and want to sell their stocks at same price while awaiting the new stock at the new price.
I think he would have given them an ultimatum to clear their old stocks before slashing the price, that alone would have brought the price down as distributors will flood the market the products, this is not a decision that was taken overnight. He didnt give them the old stock at N1,000. It is easier for him to slash price after proper planning and clear all his old stocks.
DANGOTE CEMENT FACTORY
ReplyDeleteNIG PLC. WISH TO INFORM THE GENERAL PUBLIC OF
SALES OF ITS CEMENT REDUCTION.. THE NEW PRICE
REGIME ANNOUNCED BY THE MANAGEMENT THE
DANGOTE CEMENT GRADE 50KG BAGS AT N1,000 PER
BAGS,A STATEMENT BY THE COMPANY AT THE END OF A
MANAGEMENT MEETING 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 ECONOMIC.THE MANAGEMENT NOW OFFER
CEMENT AT LOW FACTORY PRICE N1,000 PER BAGS AND
DELIVER TO ANYWHERE IN NIGERIA AS FAR AS
CUSTOMERS ARE READY AND WILLING TO PLACE THEIR
ORDERS*CONTACT MARKET DISTRIBUTION FOR
PURCHASE NOW.FOR MORE INFORMATION CONTACT (MD) ON VIA +23481353863900 OR +2349033413356 FOR QUICK ASSITS
DANGOTE FACTORY WISH TO INFORM THE
ReplyDeleteGENERAL PUBLIC
OF NIGERIA SALES OF CEMENT AT A
PROMOTIONAL FACTORY
PRICE OF #1,000 BAGS OF RICE #7,000 PER
BAG GRONDNUT
OIL 30LITRE #3,200, BAG OF FLOWER #4,000,
BAG OF SALT #
9,50, BAG OF SUGAR #4,000, AND LOTS MORE
CONTACT. THE
SALES MANAGER ON +2349028579117 OR
+2349059611566 WE DELIVER TO ANY PART
OF THE COUNTRY UPON THE CUSTOMER(S)
ORDER,AND
DELIVERED TO YOUR DOOR STEP *PRODUCT:
dangote CEMENT
(50KG) *ORIGIN: dangote pLC. *PRICE PER
BAG:# 1000 NAIRA
ONLY. *TRAILER LOAD QTY:HALF OR FULL
TRAILER.
*DURATION OF DELIVERY AFTER
ORDER:2DAYS.
*TRANSPORTATION COST: DEPENDS ON
STANCE/ YOUR.
STATE. NOW TO PLACE YOUR ORDER. ALSO YOU
CAN
REGISTER AS AN INDIVIDUAL OR CORPORATE
BODY. NOTE: we
deliver our goods to every state. Customers
may reside in
stocks, sites or construction company. Also
workers are needed
eg driver and lot more..........thanks for you
patronage.