Nigerians have reacted over the Dangote Cement Group sells its product in the Southern African country, Zambia, for at most 110 Kwacha which equals to about N1,800 in Nigeria, while the same product sells for not less than N3,500.
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.
Meanwhile checks by Newsflash Nigeria in Nigerian construction markets revealed that Dangote Cement sells for N3,500, while Lafarge sells for N3,400 – about double of what Zambians pay for the same commodity.
Nigerians have reacted over the incident, some of the citizens say Dangote cement in their area selling at the rate of N4,200. See the ways people respond:
@Nazeer Bn Muhammad, “Maybe Nigeria collect too much revenue from him which will make must for him to sell it at that price, maybe Dangote pays FG at least 70% of 3,500 it means FG is the one selling cement to Nigerians in disguise”.
@Omotayo Eniola, “Just expects his refinery fuel pump price for minimum 300naira per litre. He has becomes so rich in a poverty stricken country, he’s not better than those corrupt politicians who loots our money”.
@Mohammed K Kyari, “Too many share holders involved and the money is at large despite its friction against dollars with very little buyers in this country.”
@Awang Karel, “According to Bloomberg Dangote charges 3 times the global average for his Cement. This is because he has control of almost 70 per cent of NIGERIA’S cement market. Even this refinery he’s building he’d likely do the same. Nigerians may be celebrating but he’d corner the market and then inflict maximum pain on Nigerians. That’s his way”.
@Zubudia Abaribe, “This Dangote of a man is one of our oppressors, so we must do whatever we can to free ourselves from them”.
@Michael OgRem Atlas, “Sign that by the time his refinery is ready, he would sell it 3 times the amount being sold in other places. What a one chance country.”
@Good Better Best, “Nobody would monopolise Biafra business or sane country the way Dangote has monopolised Nigeria. What’s going on in Nigeria with Dangote is corruption in the highest level, and its very shameful for a Nation”.
@Emeuche Ucheoma, “Please it’s N4,100 in Nigeria not N3,500. They brought down Ibeto cement which was considerably cheaper than Dangote to enjoy Monopoly.
The elites in Nigeria are simply our enemies within.”
@Enoch Omachonu Agwojo, “That’s the habits of all Nigeria marketers. They will buy something of #100 and sell it #500 to us. Over gain, cheating and wickedness is the habits of most Nigeria marketers. I knew it for long”.
@Lucas Daniel Kwaghe, “Multi taxation, lack of stable power supply leads to all these.In some countries free tax on any importation for manufacturing companies even custom duties is free but in Nigeria you must pay all even alayes on the road”.
@Cent Peters, “Even here in Sierra Leone Dangote cement is #2000, that’s to show how wicked these people are to their own people in that contraption call Nigeria”.
@Emmy Fates, “Abeg where them de sell cement N3500 for Nigeria right now, I have been buying N4200 for the past 1month for my building project in the east”.
@Muhammad Naib, “The same Ɗangote that enjoyed taxation wavers over the years for his imports during Obasanjo and former Finance Minister Ngozi Okonjo-Iweala now exploiting Nigerians on high Cement price of N4500 per bag”.
