Dangote And Cement Price Slash

Dangote Cement, a subsidiary of Dangote
Group of Companies and producers of
one of the leading brands of cement in Nigeria recently announced a new price regime, slashing the market price of its product by 40 per cent.
To this end, the 32.5 cement grade will now sell at N1,000 per 50 kilogramme (kg) bag, while the 42.5 grade would sell at N1,150 per bag across the country. The new price according to Dangote Cement is exclusive of the Value Added Tax (VAT) on the prevailing market price of the product.
Until the change, cement sold in Nigeria at N1,700 irrespective of the grade across the country. In fact, in some areas, cement sometimes go for as much as N2,000.00 and above. Being a major component for housing, the cost of cement constitutes one of the major determinates of housing in Nigeria.
Interestingly, another cement manufacturing firm, the BUA Group has also announced its willingness to also cut price by the same margin declared by Dangote. This, to say the least is most commendable. It is one move that comes with some great economic benefit.
It would be recalled that the Federal Government had earlier taken steps to push down the cost of cement to N1,000 per bag, but failed. For the companies to now do it on their own is simply wonderful and greatly considerate of the ordinary Nigerian.
While it is interesting to note that these firms can produce at a much lower cost, the decision to bring down the price is most uncommon, patriotic and capable of supporting the housing and construction industry that the economy can leverage on.
Indeed, Dangote and his colleague have set an example which more organisations need to follow. This is because high cost of a lot of products in Nigeria has effectively cut-off a majority of the population from participating in the economy. This is not in the best interest of anyone.
The Tide welcomes the price cut as it will answer to the nation’s dire need for the development of infrastructure and boost the Federal and State Governments’ effort at reducing the near 200 million housing deficit in Africa’s largest economy.
With this development, we expect that not only would the cost of construction come down, the housing deficit will be reduced, the prohibitive rent, being demanded will be significantly reduced and the spirit of fair market and patriotism will characterise the activities of the market place.
The Tide in greatly surprised that any Nigerian could decide to give up part of his/her profit to support the economy. It is heartwarming that it is being done at a time when the year is coming to a close and when people are faced with the opening of an electoral season. It will stand out as one of the best things that happened to Nigeria in the year 2014.
In appreciation of this wonderful gesture, we expect developers to take advantage of the emerging dry season and reduced cost of cement to go into the building of more houses with a view to reducing the crisis in that sector.
We also call on the Dangote Cement Company and other cement manufacturers to ensure that the activities of some middle men do not make nonsense of this great sacrifice they have made. Indeed, the government should also help in monitoring and ensuring that cement gets to the people at the price so generously offered.
We must not forget to underscore the fact that not every Nigerian enjoys proceeds of cut-throat prices. It is good to note that there are still Nigerians that will not see success only in the measure they exploit the masses, but in providing a level playing field for all.
The impact this single policy would have on the economy cannot be quantified. For one, the hope it now returns to millions of Nigerians, who may have lost the faith in being able to own houses is huge. Because business moves in chain, other products will be in demand, employment will be created and the average person will live in proper house that would make for better productivity. For this, Nigeria cannot thank Dangote and the BUA group enough.