A major manufacturer of cement in the
country, Dangote Cement Plc, has explained that the recent increase in
the price of the commodity is due to low production of the commodity is
as a result of turnaround maintenance of some plants and gas shortage.
However, the company said it had released
nine million tonnes of cement into the market in a bid to prevent the
commodity’s price from soaring.
The hike in cement prices became
noticeable in January this year with a bag of the commodity, which sold
for between N1,700 and N1,800 previously selling at up to N2,500 by
February.
The President, Dangote Group, Aliko
Dangote, had said at the company’s Annual General Meeting held in Lagos
recently that the firm had not increased cement prices as was being
alleged in some quarters.
He was quoted as saying in the statement
made available on Sunday, “The recent scarcity in cement product in
Nigeria is due to low production between January and March due to the
yearly turnaround maintenance of the company’s plants at Ibeshe and
Obajana.
“We have released nine million tonnes of cement into the market to stem the tide of scarcity and bring down the price.”
He pledged that as part of efforts to
bring the situation under control, the company would also intensify
direct-to-consumer deliveries.
According to him, the move is based on the belief that adequate supply of the commodity will lead to a reduction in price.
Dangote Cement has plans to invest in no fewer than 16 African countries for cement production
Dangote has also said that the group is
partnering with the government of Tanzania to complete a $600m cement
factory in the East African country.
He said the plant, which has already
reached 25 per cent completion, would have the capacity to produce three
million metric tonnes of cement annually when completed.
Dangote spoke with journalists at
Obajana, Kogi State after conducting the President of Tanzania, Dr.
Jakaye Kikwete, round the cement plant. Kikwete was in Nigeria for the
World Economic Forum.
Kikwete, who said the Obajana Cement Factory was a state-of-the-art facility, described Dangote as a reliable partner.
He expressed the hope that the cement factory in Tanzania would be the best globally when completed.