Dangote Cement Addresses Rumors of Cement Price Reduction from N5,500 to N2,700 on October 1

 Dangote Cement Addresses Rumors of Cement Price Reduction from N5,500 to N2,700 on October 1

There have been recent speculations regarding a significant price drop in Dangote Cement's product, with reports suggesting that the cost of a cement bag, currently priced at N5,000, is slated to plummet to N2,700 starting on October 1. This purported move mirrors the recent decision by BUA Cement to reduce its prices. To ascertain the accuracy of these reports, Vahulance reached out to the Dangote Group to confirm the impending price adjustment.

However, the Dangote Group, the parent company of Dangote Cement, has categorically denied these reports, refuting any plans to implement a 50.9 percent price reduction on October 1, 2023. Various messages circulating on multiple social media platforms, including WhatsApp groups, had conveyed the notion that Dangote Cement was gearing up for a substantial price cut.

The message circulating read as follows: "Dangote crashes cement price from N5500 to N2700. Aliko Dangote has announced the new price of cement crashed by 50%, from October 1st, from N5500 to N2700."

The alleged impending reduction in Dangote cement prices coincides with recent statements made by Abdul-Samad Rabiu, the Chairman of BUA Group. He made these remarks following a meeting with President Bola Tinubu on Friday, September 15, 2023. Rabiu indicated that the price reduction would be enacted following the inauguration of two new cement plants, which is expected to occur either by the end of the year or in early 2024.

In a statement to the press, Rabiu explained, "By the time these new production lines are commissioned, BUA Cement will be capable of producing approximately 17 million tonnes per annum. Consequently, we intend to lower the cement price from its current range of N5,000 or N5,500 per bag to perhaps N3,000 to N3,500 per bag."

He elaborated that the increased production capacity would enable his company to saturate the market with cement, thereby diminishing the financial burden on Nigerian consumers.