TheCable

Dangote cement has slashed the price of cement from N1700 to N1000, saying it is in line with the company’s commitment to the nation and the need for the development of infrastructure in the country.

The new price regime  will make cement cheaper than it has ever been since 2005.

Announcing the new price, Devakumar Edwin,  the group managing director of Dangote Cement, said the company had pegged the Dangote 32.5 cement grade at N1,000 per 50 kg bag, while the higher 42.5 grade is to sell for N1,150 per bag.

The new prices exclusive of the value added tax (VAT), represents about 40 per cent discount on the prevailing market price of the product, which is currently sold for N1,700 irrespective of the grade, across the country.

Edwin said 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 economy.

“We recognise the need for an increased rapid response to the huge infrastructure and housing deficit in the country, and one of the ways of addressing the issue is bringing the price of building materials down to much more affordable levels, especially cement which within our own control as part of our own contribution to the transformation agenda of the Goodluck Jonathan administration and the attainment of key milestones in the Millennium Development Goals (MDGs),” he said.

Since the commencement of the implementation of the backward integration policy for cement in the country over 12 years ago, the local production capacity of the product rose from less than 3 million metric tonnes per annum to about 38 million metric tonnes per annum.

During the over 12-year period of the backward integration policy,  nearly $20 billion has been directly and indirectly injected into the Nigerian cement industry with Dangote Cement Plc accounting for 60 per cent of that spend.

Edwin also noted that Dangote Cement Plc will continue to ensure alignment of its corporate social responsibility with its strategic business initiatives and will continue to evaluate its pricing regime in Nigeria’s best interest.

It would be recalled that in further compliance with the ongoing Standards Organisation of Nigeria (SON) directive and regulation on the various grades of cement and their prescribed uses, Dangote cement launched its brand of the premium 32.5 cement grade, which has been restricted to plastering use only.

The largest cement producer in Nigeria noted that ” the move was to develop a full bouquet of cement types to meet the varied needs of consumers for the different grades of cement”.

With this move, Dangote now produces 42.5 for column casting, block making, decking and other general purpose construction work that require high strength, while also producing the premium 32.5 grade for rendering or plastering, flooring and other activities that may not require intense cement strength.