Cement sellers groan after Dangote’s price reduction

Distributors of cement and block makers in Ilorin, capital of Kwara state, on Thursday expressed mixed feelings about the new price of Dangote cement in the country.

Dangote Cement Plc slashed the price of the commodity from N1700 to N1000 on Monday, saying one of the ways to respond to huge infrastucture and housing deficit was to make the price of building materials more affordable.

It pegged the Dangote 32.5 cement grade to N1, 000 per 50kg bag, while the higher 42.5 grade was reduced to N1, 150 per 50kg bag.

Alhaji Ahmed Folorunsho, a distributor of Dangote Cement in Ilorin, told NAN that he had not sold his old stock of the cement and so, it would be difficult for him to sell at the new prices.

“The price of Dangote cement in my store has not changed because there is no way I will sell at the new price as I did not buy it at that price, I bought it at N1, 650,” Folorunsho said.

He said that the slash in price had negative impact on his business, as sale of the product had drastically reduced.

Mr Michael Opeyemi, a distributor at Lafarge cement depot in Ilorin, also lamented that sales had dropped since the announcement of the new price regime.

“People are taking their time in buying cement now since the announcement,” Opeyemi said.

“I think they are waiting for the new price to take effect; I do not know how we are going to dispose of the old stock now.”

However, Mr Muyiwa Oladipo, a block maker, commended the price slash and urged distributors to comply with the new prices.

“It is a good development,” he said.

“The price reduction might lower the prices of blocks and make the commodity more affordable to people.

“It will also mean that people could build more houses for rent and private use, and that will boost our business.”