Dangote Addresses Rumors of Cement Price Reduction to N2,700 on October 1

Reports circling in the media have been abuzz with rumors about a monumental slash in the price of cement from N5,500 to N2,700, come October 1. The focus of this chatter is none other than Dangote Cement, the industry giant led by Africa’s richest man, Aliko Dangote. In a bid to get to the root of the matter, we sat down with the business titan to separate fact from fiction. 

“While we’re always looking for ways to make construction more affordable for Nigerians, we have not made any official announcement about slashing the price of our cement to N2,700. The figure currently being discussed lacks context and does not reflect a full understanding of the dynamics and costs involved in cement production.”

These words give clarity to the rampant speculations and groundless reports concerning potential significant price reductions. The subsequent paragraphs will delve deeper into the key points raised during our conversation with Mr. Dangote. 

Are you curious about the factors that shape cement pricing or the future of the construction industry in Nigeria? Or perhaps, you want to understand better the business strategies of this African mogul? This article promises to address these points and more, providing a comprehensive understanding of the scenario and its broader implications. So, join us as we unpack the complexities of the cement industry.

Dangote reacts

In an exclusive talk with Naijanewsgossip.com, Anthony Chiejina from Dangote Industries Limited called the reports fake news.

How Rabiu plans to reduce cement price

Has the buzz about the alleged price reduction of Dangote cement stirred your interest? Well, it’s not surprising given the recent revelations made by Abdul-Samad Rabiu, the esteemed Chairman of BUA Group.

Rabiu had revealed his company’s intention to lower cement prices in Nigeria from the current N5,500 to a range of N3,000 to N3,500.

He spoke after meeting with President Bola Tinubu on Friday, September 15, 2023.

According to the billionaire, the price reduction will be implemented after two new cement plants are inaugurated by the end of the year or in early 2024.

Speaking to journalists, he said:

“By the time these lines are commissioned, BUA Cement will produce about 17 million tonnes per annum. And with that, we intend to bring down the cement price from its current level of N5000 or N5500 per bag to maybe N3000 to N3500 per bag.”

He stated that with increased production, his company would flood the market with cement, thereby reducing the prices paid by Nigerians.