A false claim that Dangote Cement Plc exploits Nigerians by charging N5,200 for a bag of 50 kg cement while charging only N1,500 in the Republic of Benin went widespread on social media last week.
Dangote Cement is not available in Cotonou or the rest of the Republic of Benin, according to an investigation conducted by THISDAY over the weekend.
Dangote does not directly sell cement to the Benin Republic; rather, the country serves solely as a hub via which the company moves cement en route to Togo.
It was found that a 50-kilogram (32.5-pound) bag of cement cost on average N6,216 (4,200 CFA) in Benin Republic.
THISDAY found that the price of a 50-kilogram bag of cement ranges from 4,000 to 4,100 to 4,200 CEF in Cotonou’s Akpakpa, Ghandi, and Etoile Rouse (Red Star) neighborhoods, respectively.
Cement costs 4,500 CEF (about N6,660) in Parakou, the main city in northern Benin, due to transportation and logistical costs, THISDAY was told.
At the 1.00 Cefa to N1.48 rate prevalent on the black market, this translated to an average price of N6,068 for a 50-kilogram bag of cement in Cotonuo and N6,660 in Parakou.
THISDAY found that the government of the Republic of Benin fixed the price of cement to maintain stability, and that a 51% duty and other taxes were imposed on imported cement to reduce the importation of the commodity and increase the production of cement domestically.
Cimbenin Buffle, Ciment Bouclier, Nouvelle Cimenterie du Benin, and Ciment Diamant are just a few of the popular locally produced cement brands in Cotonou. In comparison to the 42.5R cement grade sold by Dangote Cement in Nigeria, these are primarily of the 32.5R variety.
An article published online on August 27, 2023, stated, “Nigerians have taken to social media to call out billionaire Aliko Dangote for selling his bag of cement for N5,200 in his own country, but selling at N1,500 in Benin Republic.”
According to the article, a Twitter user named @drpenking criticized Dangote for charging N5,200 each bag of cement in Nigeria, even though the company imports all of his raw materials from the country.
According to a tweet by @drpenking: “Dangote cement is made in Nigeria. The raw materials are obtained at essentially no cost from local sources in Nigeria. We don’t bring in anything. Cement costs N5,200 in Nigeria despite almost nonexistent taxes, but in Seme, Benin Republic, it costs only N1,500. Put your feet up and tell me about it.
While the government of the Republic of Benin could subsidize cement production, its Chief Executive Officer of the Marketing Challenge Agency (MCA) in Cotonou, Mr. Dia Ibrahim Kola, told THISDAY in Cotonou last Friday that the government was instead working to keep cement prices stable through a price regulation regime.
According to Kola, “the national cement price is the only price.” The price per tonne of cement works out to 78,000 CFA. However, a 50-kilogram bag of cement can cost anywhere from 4,100 to 4,200 CFA at the register. Parakou, in the country’s north, has a higher price, ranging from 88,000 Cefa to 90,000 Cefa per tonne.
He stated that the country’s objective was to impose heavy import duties and taxes on cements that do not meet the requirements of the ECOWAS Trade Liberalisation Schema (ETLS) in order to discourage their import and boost local manufacture.
Besides Lafarge, we have three or four other cement producers. The government maintains a set price and regularly dispatches taskforces, particularly to Cotonou, to ensure compliance.
However, the government of Benin does not subsidize the cost of cement, and this must be emphasized. During a time of severe shortage, the price soared to CFA 100,000 per tonne, prompting the government to step in and try to restore stability to the market, he explained.
Kola noted that four years ago, a Nigerian woman at Igolo, which is close to the Nigerian border, was the only person he had ever seen selling Dangote Cement in the country. She may have smuggled it in.
A bag of cement produced at any of Dangote Cement Plc’s Nigerian facilities would set you around N4,010 (about 2,730 Cefa) as of August 28, 2023. This compares to N4,640 (roughly 3,135 Cefa) at Ibese, Objana, and Gboko.
It was also noted that charges per 50-kilogram bag could range from N5,000 to N5,300 depending on factors like shipping expenses and delivery location.
The company wanted to set the record straight after recent rumors circulated that their cement pricing in Nigeria were much higher than in the Republic of Benin and other nearby nations.
It is crucial to differentiate Dangote Cement’s ex-factory prices from the prices at which merchants sell cement, as per the advice of Dangote Cement’s Group Managing Director, Mr. Arvind Pathak.
Despite the rising cost of living, Pathak assured investors that Dangote Cement will continue to provide high-quality cement at competitive prices.
We’re constantly developing cutting-edge strategies to better serve our millions of loyal consumers across Africa and get them their orders as quickly as possible. He emphasized Dangote Cement’s dedication to creating a company that benefits everyone involved in the company’s value chain.
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