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

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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

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Legit.ng reached out to Dangote group to confirm the expected new price for a bag of cement in few days

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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.

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Most of Dangote’s fortune is derived from his 86% stake in publicly traded Dangote Cement.

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.”

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Dangote reacts Speaking with Legit.ng exclusively, Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Industries Limited, described the reports as fake news.

How Rabiu plans to reduce cement price

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The rumoured planned reduction in price of Dangote cement comes on the heels of 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 will be implemented after two new cement plants are inaugurated by the end of the year or in early 2024. 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.”

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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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