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Dangote: Cement price from our Factories is between N2,450 and N2,510 per Bag, VAT inclusive

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Management of Dangote Cement Plc has clarified that the price of a bag of cement from its factories and plants across Nigeria (as at 12th April, 2021) is N2,450 in Obajana and Gboko, and N2,510 in Ibese inclusive of VAT. The clarification was made in view of recent insinuations that the company sells cement in Nigeria at significantly higher prices relative to other countries, particularly Ghana and Zambia.

Dangote’s Group Executive Director, Strategy, Portfolio Development & Capital Projects, Devakumar Edwin revealed that, 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. He said that though the company has direct control over its ex-factory prices, it cannot control the ultimate price of cement when it gets to the market. He advised that it is important to distinguish Dangote’s ex-factory prices from prices at which retailers sell cement in the market.

He, therefore, frowned at intentional misinformation or demarketing, allegedly sponsored by some individuals, that Dangote sells its cement at higher prices in Nigeria relative to other African countries at the expense of Nigerians. He described the allegation as false, misleading, and unfounded, while giving the media persons present at the press conference copies of invoices from Nigeria and some other African countries (Cameroun, Ghana, Sierra Leone, Zambia), and urging them to conduct independent investigations on the price of cement across the West African coast.

Edwin further explained that while Dangote cement has 60% share of the market, other companies have the remaining 40%. DCP has no control over neither the prices charged by other cement manufacturers nor the prices charged by retailers in the markets.

 

He further explained that “Demand for cement has risen globally as a fallout of the COVID crisis. Nigeria is no exception as a combination of monetary policy changes and low returns from the capital market has resulted in a significant increase in construction activity. To ensure that we meet local demand, we had to suspend exports from our recently commissioned export terminals, thereby foregoing dollar earnings. We also had to reactivate our 4.5m ton capacity Gboko Plant which was closed 4 years ago and run it at a higher cost all in a bid to guarantee that we meet demand and keep the price of Cement within control in the country.”

He said: “Over the past 15 months, our production costs have gone up significantly. About 50% of our costs are linked to USD so the cost of critical components like: gas, gypsum, bags, and spare parts; has increased significantly due to devaluation of the Naira and VAT increase. Despite this, DCP has not increased ex-factory prices since December 2019 till date while prices of most other building materials have gone up significantly. We have only adjusted our transport rates to account for higher costs of diesel, spare parts, tyres, and truck replacement. Still, we charge our customers only N300 – 350 per bag for deliveries within a 1,200km radius. We have been responsible enough not to even attempt to cash in on the recent rise in demand to increase prices so far” he said.

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How Aliko Dangote supported businesses in Nigeria-Sambajo

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President of the Dangote Group Aliko Dangote has been described as a rare gem and kind hearted industrialist for nurturing trading and commercial activities in North and across Nigeria for almost four decades.

Speaking when he visited the Dangote pavilion at the ongoing Kano International Trade Fair, Alhaji Salisu Sambajo, said: “ I can say confidently that Aliko has been supporting us for the past 40 years, and he has lifted us up when our businesses where going under.”

Mr. Sambajo is a Kano based international business tycoon, and chairman of the Sambajo General Enterprises Limited. He’s considered one of the biggest business names in northern Nigeria.

“Aliko’s support in growing commercial activities in the North and all over the nation cannot be quantified. The history of Nigeria’s commerce, and indeed of industrialization, cannot be completed without his name topping the list. It’s only God that can reward him,” he said.

The business mogul added: “I am telling you this confidently because I am one of the beneficiaries of his generosity. No one can deny his kindheartedness and support, and God is with such people.”

He recalled that Mr. Dangote had committed billions of naira through Bank of Industry for the development of small businesses in Nigeria, adding that the Fund was expected to create one million jobs.

The business mogul also recalled that Mr. Dangote had supported the Federal Government with billions of naira during the 2012 flooding in Nigeria.

“During the Covid-19 pandemic, we read it in the news that Aliko donated billions of naira. All these are coming from one person. Nigeria should be grateful to him,” he said.

He added that: “ Also remember that at the peak of the Boko Haram crisis, Aliko Dangote had donated a housing estate worth billions to the Internally Displaced persons in Borno State. I can go on and on. His interventions are so numerous.”

According to the businessman, “Aliko has since stopped working for himself. All he has been doing is to lift people out of poverty. I remember whenever we recorded losses, Aliko will lift us up again and again. I don’t want to go into specifics. He’s a very kind and generous person. He deserves all our respect and it’s a big honour that God created such a man in Nigeria.”

Mr. Sambajo said it is not for nothing that Mr. Dangote, is Nigeria’s biggest private sector employer.

The business mogul traced relationship with Mr. Dangote to over 40 years, adding that he has been a great philanthropist who has his country and Africa at heart.

Mr. Sambajo described the upcoming Dangote Refinery as a legacy project that will positively impact the country’s economy.

Dangote Group is the major sponsor of the ongoing 44th Kano International Trade Fair.

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Nurturing 30 New Entrepreneurs: Dangote’s Commitment to Nigerian Economy

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The Dangote Cement Plc has announced the creation of 30 new entrepreneurs who are expected to help bolster food production and ginger the Nigerian economy.

The new Chief Executives were graduated weekend following a three-month intensive entrepreneurial and skill acquisition training on poultry farming and business.

President Bola Ahmed Tinubu had advocated for Public Private Partnership during his speech at the recent Nigerian Economic Summit in Abuja.

Speaking at the graduation ceremony, Plant Director of the Dangote Cement Plc at Obajana in Kogi State, Mr. JV Gungune, said the company’s entrepreneurial scheme is a demonstration of the huge corporate support for government and Nigeria.

The Plant Director who was represented by Engr Wale Adisa, A Senior General Manager, said the President and Chief Executive of the Dangote Group, Alhaji Aliko Dangote is one Nigerian who is passionate about Corporate Social Responsibility and philanthropy.

Mr. Gungune told the beneficiaries to leverage on the advantage conferred on them by the scheme, adding that it was a golden opportunity to be selected, trained and empowered.
He said the scheme has become necessary as it was not possible for the company to employ every one.

He said the development was as a result of the peaceful co-existence between the company and the communities, harping on the need for the youth to become skilled, and that the era of certificate was gone.

Representative of the Ministry of Mines and Steel Development in Kogi State Engr Ezekiel Olufemi Olaitan said the government was happy by the series of economic, social activities, and opportunities created by the Dangote Cement Plc, urging the beneficiaries not to disappoint Nigerians.
In his welcome address, General Manager, Community Relations and Special Duties, Mr. Ademola Adeyemi, said the scheme was part of the company’s Corporate Social Responsibility (CSR), adding that, of the 30 participants, 18 were females and 12 were males.
He said the training was conducted by the Kogi State College of Education (Technical), Kabba, on behalf of Dangote Cement Plc.

According to him: “The Dangote Cement PLC, Obajana Plant Empowerment Scheme among many other is aimed at transforming the youth to be skill full, self-reliant and independent. This year 2023 Youth Empowerment Scheme was particularly designed at developing selected youth from each community to be not just farmers in poultry (layer: egg) producer’s but Entrepreneurs in Agricultural Business.

“The programme is equally aimed at eradicating some of the social vices and poverty that have eaten deep into our communities.”

Representative of the Provost of the Kogi State College of Education (Technical), Kabba Dr. Micheal Udoma said the Dangote Cement Plc had empowered the beneficiaries by starter packs, Bags of Grower feed, battery cages, hand gloves, a 60 litre basin, a hand bowl and point of lay birds.

Head of the Dangote Academy, Engr Wale Adedeji advised the new entrepreneurs not to rest on their oars, but keep reinvesting and profit, saying they can learn from the founder of the company, Alhaji Aliko Dangote.

Speaking, the Bajana of Obajana, Dr Idowu Isenibi, expressed optimism that the programme will help in radically transforming the economy of the Obajana communities and Kogi State in general.
In the same vein, the Olu-Apata Dr. Frederick Balogun, thanked the company for the programme, and urged participants to keep investing in the business.
Representative of the graduands, Mr. Alolo Victor Eleojo said they have registered a Cooperative Society to help buoy their financial standing.
“As new CEOs, we have formed a cooperative and do the necessary registrations,” he added.
He promised not to disappoint the Dangote Group and Nigerians as a whole.

Earlier in the cause of the programme starter packs comprising of medications, vitamins, cages, feeds, 50 layers and poultry farms equipment were given to each of the 30 graduands.

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