Dangote Cement is reducing the price of its market-leading 3X brand of cement in Nigeria by ₦300 per 50kg bag, or ₦6,000 per tonne. The new price will become effective immediately.
The last time the company announced an increase in the price of Cement was in December 2014. Back then it indicated that the Dangote 32.5 cement grade was pegged at N1,000 per 50-kilogramme bag, while the higher 42.5 grade is to sell for N1,150 per bag representing a 40% decrease. However, the price subsequently increased within weeks doing so by sending text messages to its distributors and annoying most customers.
This time the company Chief Executive seems focused on local consumption and has announced it is also undertaking a number of marketing initiatives designed to stimulate consumption of cement in Nigeria and to increase exports.
Onne van der Weijde, Dangote Cement Chief Executive, said:
“ Our cost – saving initiatives in Nigeria have enabled us to cut the price of cement to a level that is good for consumers yet still allows us to achieve strong returns that are sustainable in the longer term.
We hope that reducing the cost of cement will help to stimulate building work across Nigeria at a time when the economy is in need of a boost. We are particularly keen to encourage the use of cement to build concrete roads because this reduction will make them competitive in cost to other less robust methods that will prove more expensive in the longer term.
Furthermore, we believe our cost – sa ving initiatives and new pricing strategy will help to support the Naira by reducing unnecessary imports and by enabling us to generate valuable foreign exchange earnings through the export of Nigerian cement to neighbouring countries. Last week we receive d a shipment of 2 ,000 new trucks , which, after clearance from the port will be ready to begin exporting substantial quantities to neighbouring countries that lack the limestone resources necessary to make this most basic but ec onomically important material.
Our business is diversifying rapidly and we are achieving remarkable gains in market share across Africa. The price cut we have announced today will support our long – term strategy for growth and prosperity as we consolidate our position as Africa’s leadi ng provider of cement.”