Dangote is unpatriotic, Nigerians blast Africa’s richest man for selling bag of cement N1800 in Zambia; N3,500 in Nigeria
The decision by Africa’s richest man owned cement manufacturing company, Dangote Cement to sell a bag of cement double the price of what is obtainable in Zambia has received strongest condemnations with some Nigerians threatening a boycott of the product.
Checks by Newsclickng.com on the prices of bags of cement with major manufacturers revealed that Dangote Cement sells for N3,500, while Lafarge sells for N3,400 but same commodity is sold for N1,800 in Zambia.
Newsclickng.com reports that the Dangote Cement is one of the several business conglomerates owned by Africa’s richest man, Aliko Dangote.
According to reports, the Zambia Board of Commissioners of the Competition and Consumer Protection Commission said it ordered Lafarge Zambia Plc, Dangote Cement Zambia Limited and Mpande Limestone Limited to revert to the cement prices ranging between Kwacha 99 to Kwacha 110 after there was uproar over its recent increment.
The Board also fined Lafarge Zambia Plc and Mpande Limestone Limited 10% of their annual turnovers for the year 2019 and another 10% of their 2020 annual turnovers for price fixing and division of markets.
The Board, however, said it was lenient with Dangote Cement Zambia Limited, for having cooperated with the Commission during investigations.
According to Zambia News, the decision to fine Lafarge Zambia Plc and Mpande Limestone Limited was made during the 49th Board of Commissioners Meeting for the Adjudication of Cases held in Lusaka on March 30, 2021.
This was after an exhaustive investigation by the Commission initiated in January 2020 following the Commission’s observation of a sustained increment of cement prices from an average of K55 to K100 per 50kg bag between July 2019 and January 2020.
The continuous price increment of cement by the parties led the Commission to suspect that there was possible collusion and an agreement to fix the prices of cement and the Commission carried out investigations for a year.
In a statement issued by CCPC Senior Public Relations Officer, Namukolo Kasumpa, the Board has also ordered Lafarge Zambia Plc, Dangote Cement Zambia Limited and Mpande Limestone Limited to revert to the pre-cartel prices ranging between USD 4.50 – USD 5 (K99 – K110) for a period of one year from the date of receipt of the Board decision pursuant to Section 59 (3) (b) of the Act.
“Additionally, that Lafarge Zambia Plc, Dangote Cement Zambia Limited, Mpande Limestone Limited submit monthly average ex-works prices and any price adjustments be indexed to the exchange rate and be submitted to the Commission for review pursuant to Section 58 (1) of the Act,” the Board stated.
The Board has further ordered the three cement companies to develop and implement compliance programmes in their respective firms within 90 days of receiving the directive.
“Furthermore, the Board has directed Lafarge Zambia PLC, Dangote Cement Zambia Limited and Mpande Limestone to make undertakings within 90 days of receiving the directive that their respective employees should not engage in any anti-competitive behaviour and that the enterprises should not facilitate and/or participate in any anti-competitive conduct including the exchange of information,” the Board stated.
Nigerians react
Checks Newsclickng.com on popular micro blogging site, Twitter on Thursday morning revealed the following conversations;
A bag of dangote cement sells at between #1150 and #1800 in zambia while it sells at between#3500 and #4500 in nigeria where it is bagged and the country home of the owner.
One Nigerianists, i hail o.
— Nigerian By Force! (@Francis32269624) April 7, 2021
The same dangote cement we struggle to buy #3000 – #5000 in Nigeria is what Zambia is buying #1500 – #1800. Yet people still tell me dangote is not our problem.
— Johnpaul Czar (@MztaCzar) April 7, 2021
Dangote cement production in Zambia is independent of Nigeria. They don't import limestone from here and other factors production are unique to both countries. Why shouldn't prices differ?
— Imela (@imela_elias) April 7, 2021
Dangote cement is sold double the price of what it's sold in Zambia here in Nigeria. Remember that the cement is produced in Nigeria.
Don't be surprised when he completes his refinery & the price of petrol keeps going up despite the refinery operating here in Nigeria.— Iyke⚓️ (@IkennaOkwara_) April 7, 2021
Dangote cement to Zambia: #1,150
To NIGERIA: #3, 500Ó ma gà ooo
— Freegal (@aah_pi_ness) April 7, 2021
We are talking about the high price of Dangote cement, what of the high level of fatal accident caused by his reckless drivers that always takes peoples life you guys ain't talking about that #dangote
— OKORO (@OkoroDeyForYou) April 7, 2021
Dangote cement is N1800 in zambia and N3500 in Nigeria despite having in abundance cement raw materials in Nigeria.
— adekola damilola (@adekoladammy) April 7, 2021
https://twitter.com/_Mbahdeyforu/status/1379930235647442945?s=20
