Dangote
Cement Plc has announced a 41 per cent reduction in the prices of cement, with
the different grades of the essential commodity now selling for between N1,000
and N1,150, exclusive of Value Added Tax.
In
the new price regime announced on Sunday by the Group Managing Director,
Dangote Cement, Mr. Devakumar Edwin, a 50kg bag of the 32.5 cement grade will
now sell for N1,000, while the higher 42.5 grade is to sell for N1,150 per bag
instead of the current N1,700 that both grades were going for.
Edwin
said in a statement that the move was in line with the company’s commitment to
the nation, especially the need for the development of infrastructure and boost
ongoing efforts to reduce the near 20 million housing deficit in Africa’s
largest economy.
“We
recognise the need for a dramatic increase in the response to the huge
infrastructure and housing deficit in the country, and one of the ways of
addressing the issue is bringing the price of building materials down to much
more affordable levels, especially cement, which is within our own control as
part of our contribution to the transformation agenda of the President Goodluck
Jonathan administration and the attainment of key milestones in the Millennium
Development Goals,” he was quoted as saying.
Since
the commencement of the implementation of the backward integration policy for
cement in the country over 12 years ago, the local production capacity of the
product had risen from less than two million metric tonnes per annum to about
38 million metric tonnes per annum currently.
During
the period, over $20bn has been directly and indirectly injected into the
Nigerian cement industry with Dangote Cement Plc accounting for 60 per cent of
that expenditure.
Edwin
also said that Dangote Cement would continue to ensure the alignment of its
corporate social responsibility with its strategic business initiatives, and
would continue to evaluate its pricing regime in the country’s best interest.
According
to the statement, stakeholders have commended the price reduction and say the
cement market is entering the high demand phase as the dry season, which
provides the opportunity for increased construction and building activities, is
setting in.
In
compliance with the directive of the Standards Organisation of Nigeria on the
various grades of cement and their prescribed uses, Dangote Cement recently
inaugurated its brand of the premium 32.5 grade, which has been restricted to
plastering use only.
The
largest cement producer in Nigeria noted that the move was to develop a full
bouquet of cement types to meet the varying needs of consumers for the
different purposes.
The
company produces the 42.5 grade for column casting, block making, decking and
other general purpose construction works that require high strength, while the
32.5 grade is for rendering or plastering.
The
company also produces on demand the 52.5 grade for specialised construction of
high strength structures such as bridges, flyovers and sky scrapers, among
others.
Dangote
Cement said in compliance with the SON standard for cement quality and
packaging, the lower 32.5 grade would be clearly labelled in order to minimise
the incidence of building collapse arising from the misapplication of the
different grades of cement.
Source : Punchng.com
