Recent allegations that Dangote Cement Plc was selling a bag of 50kg cement in Nigeria for N5,200 while selling the same quantity for N1,500 in the Republic of Benin have been debunked. Investigative findings reveal that Dangote Cement is not officially sold in Benin Republic; instead, it is used as a transit route to export cement to Togo.
In Benin Republic, the average price of a 50kg bag of cement is approximately N6,216 (about 4,200 Cefa). Prices at various cement depots in Cotonou range from 4,000 Cefa to 4,200 Cefa. In the largest city in northern Benin, Parakou, transport and logistics costs result in prices of around N6,660 for the same quantity.
This price differential between Nigeria and Benin is due to factors like government-regulated cement prices and the imposition of taxes on imported cement to encourage local production. Benin has multiple cement manufacturers, including Lafarge.
Dangote Cement Plc clarified that its ex-factory prices for cement as of August 28, 2023, were N4,010 in Okpella and N4,640 in Ibese, Obajana, and Gboko. Transportation costs and location of delivery may cause market prices to vary between N5,000 and N5,300 per 50kg bag. The company emphasized its commitment to providing quality cement at competitive prices while innovating to meet customer needs.
The allegations of price disparity were found to be based on misinformation, and Dangote Cement maintains its commitment to delivering quality products at affordable prices.
Edited By Damilola Adeleke
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