Dangote Cement not on sale in Benin Republic
The claim that Dangote Cement Plc was selling a bag of 50 kg of cement to Nigerians for an extortionate price of N5,200 while it sells the same amount of cement for N1,500 in the Republic of Benin was untrue and went viral on social media last week.
Dangote Cement was not being sold in Cotonou or anywhere else in the Republic of Benin, according to an investigation conducted by THISDAY over the weekend.
Although Dangote does not formally export cement to the Benin Republic, it does so by way of that nation in order to transport cement to Togo.
The average cost of a 50kg (32.5r) bag of cement in the Benin Republic was found to be N6,216 (or 4,200 Cefa).
According to an inquiry by THISDAY into cement depots in Cotonou’s Akpakpa, Ghandi, and Etoile Rouse (Red Star) neighborhoods, a 50kg bag of cement costs 4,000 Cefa, 4,100 Cefa, and 4,200 Cefa, respectively.
Additionally, THISDAY was informed that due to logistics and transportation costs, the same amount of cement costs 4,500 Cefa (or around N6,660) in Parakou, the largest city in northern Benin.
According to this, the average cost of a 50 kg bag of cement in Cotonuo and Parakou was N6,068 and N6,660, respectively, based on the rate of exchange on the black market, which was 1.00 Cefa to 1.48 N.
According to findings from THISDAY, the government of the country setting cement prices to ensure stability and the imposition of about 51% duty and other taxes on imported cement to deter importation and promote local production of cement were the two main factors affecting cement prices in the Republic of Benin.
Cimbenin Buffle, Ciment Bouclier, Nouvelle Cimenterie du Benin, and the Ciment Diamant, which is produced in the nation, are a few of the top cement brands in Cotonou. In contrast to the 42.5R cement grade sold by Dangote Cement in Nigeria, these are primarily 32.5R grade.
On August 27, 2023, a piece from an online magazine claimed that “Nigerians have taken to social media to call out billionaire Aliko Dangote for selling his bag of cement for N5,200 in his own country but selling at N1,500 in Benin Republic.”
According to the online journal, “a Twitter user going by the handle @drpenking criticized Dangote for selling his bag of cement for N5,200 in Nigeria despite the fact that the raw material was sourced locally in Nigeria.
“He (@drpenking) tweeted, ‘Nigeria is the country where Dangote cement is made. The raw material is purchased for practically nothing locally in Nigeria. There is no importation. Cement costs N5,200 in Nigeria despite having almost no taxes, while the identical product is offered in Seme, Benin Republic at N1,500 . Sit & Explain to me (sic)
On the other hand, Mr. Dia Ibrahim Kola, the Chief Executive Officer of the Marketing Challenge Agency (MCA), based in Cotonou, told THISDAY in Cotonou on Friday that the government of the Republic of Benin was working to maintain a stable price of cement in the nation through a price regulation regime rather than subsidizing its supply.
There is only one cement price in the nation, according to Kola. Per tonne of cement, this amounts to 78,000 Cefa. However, the retail costs for a 50 kg bag of cement range from 4,000 Cefa to 4,200 Cefa. However, the cost is greater in Parakou, which lies in the country’s north, where it fluctuates between 88,000 and 90,000 Cefa per tonne.
According to him, the nation’s strategy is to discourage cement imports and promote local production by charging high import duties and taxes on cements that do not comply with the ECOWAS Trade Liberalization Schem (ETLS).
“Lafarge and other cement makers are among the approximately four that we have. The government has a set price and frequently sends taskforces to Cotonou to check on compliance.
“However, it is crucial to emphasize that the government in Benin does not subsidize the cost of cement. During a time of extreme scarcity, the price rose to CFA 100,000 per tonne, forcing the government to step in and stabilize the market, the official said.
Kola recalled that the first time he had witnessed Dangote Cement being sold in the nation was four years prior by a Nigerian woman in the area of Igolo, which is near to the Nigerian border, and speculated that she may have sneaked it in.
However, Dangote Cement Plc’s management has confirmed that, as of August 28, 2023, the cost of a bag of cement from its plants in all of Nigeria was N4,010 (or roughly 2,730 Cefa) in Okpella and N4,640 (or roughly 3,135 Cefa) in Ibese, Objana, and Gboko.
It further stated that depending on delivery location and shipping charges, rates per 50kg bag might range between N5,000 and N5,300.
This correction was given in response to recent false information that claimed the corporation sells cement in Nigeria for a lot more money than it does in other nations, particularly the Republic of Benin and other nearby nations.
Mr. Arvind Pathak, the Group Managing Director of Dangote Cement, suggested that it was crucial to distinguish between the pricing at which Dangote Cement sells cement ex-factory and the prices at which merchants sell cement in the market.
Pathak stated that despite the current inflationary environment, Dangote Cement remained committed to providing excellent cement at the greatest pricing.
We keep coming up with innovative new ways to deliver high-quality products and first-rate customer services to millions of our clients throughout Africa. We are dedicated to creating an inclusive and sustainable business for all stakeholders along the value chain at Dangote Cement, he said.
