Nigeria s cement price problem 07 May 2021
This week we take a look at the price of Nigerian cement, which has soared in recent weeks, and possible solutions on the horizon.
Retail cement prices in the country reportedly rose from around NGN2400-2600/50kg bag (US$6.3-6.83) to NGN3500 at the end of April. Further rises have been reported: Kunle Adeyemi, CEO of Sterling Homes, stated on 4 May that prices had risen once more to NGN3800 over the course of one day.
The price increase has been attributed to climbing domestic demand combined with higher input costs for cement manufacturers, who are facing rising diesel prices and instability in gas supply. Furthermore, an unfavourable exchange rate has impacted costs adversely, according to Dangote Cement.
Africaâs biggest cement manufacturer Dangote Cement Plc Friday said its after-tax profit from January through March rose by almost half to N89.7 billion, compared to the same period of last year.
Sales surged by more than one-third from N249.182 billion to N332.7 billion, with Nigeria â its home market â delivering N239.7 billion of that sum while the rest of its operations across Africa contributed N93 billion or 28 per cent, the companyâs unaudited earnings report for the first quarter showed.
Africaâs biggest cement-maker is facing soaring demand in Nigeria and has lined up strategies to expand by over one third of its current capacity as the countryâs cement consumption spikes by 40 per cent.
Dangote Cement Q1 profit climbs to N90 billion on booming sales
Sales surged by more than one-third from N249.182 billion to N332.7 billion.
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Dangote Cement Plc Friday said its after-tax profit from January through March rose by almost half to N89.7 billion, compared to the same period of last year.
Sales surged by more than one-third from N249.182 billion to
N332.7 billion, with Nigeria – its home market – delivering N239.7 billion of that sum while the rest of its operations across Africa contributed N93 billion or 28 per cent, the company’s unaudited earnings report for the first quarter showed.
Africa’s biggest cement-maker is facing soaring demand in Nigeria
Festus Akanbi
In a response to the growing demand, Dangote Cement Plc is poised to raise capacity by more than a third to meet the escalating demand as the Nigerian economy recovers.
“We are expanding capacity from about 50,000 tons a day at the beginning of the year to 70,000 tons a day at the end of the year,” Edwin Devakumar, Group Executive Director at Dangote Industries Ltd., told Bloomberg by phone yesterday.
Devakumar explained that already, the company in the past seven months had begun the reactivation of idle capacity at its Gboko plant, in Benue State, because of a 40 per cent increase in demand in Nigeria.
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