25/09/2023
**Dangote and Bua Finally Crash Cement Price, But Is It Enough?**
On September 15, 2023, BUA Cement Plc announced plans to reduce the price of cement in Nigeria from the present N5,500 to between N3,000 and N3,500 per bag. This announcement was met with widespread jubilation from Nigerians, who have long been burdened by the high cost of cement.
A few days later, Dangote Cement Plc, Nigeria's largest cement producer, also announced plans to reduce the price of cement, albeit to a lesser extent. Dangote Cement said it would be reducing the price of cement by 40%, from N5,500 to N3,300 per bag.
While the decision of Dangote and Bua to crash the price of cement is a welcome development, it is essential to ask why they are only doing so now. After all, the cost of cement in Nigeria has been high for several years now.
There are a number of possible explanations for this. One possibility is that Dangote and Bua have been colluding to keep prices high. This would be a violation of Nigerian antitrust laws, and it is something that the Competition and Consumer Protection Commission (CCPC) should investigate.
Another possibility is that Dangote and Bua have been facing increasing competition from new entrants into the cement market. In recent years, a number of new cement factories have been built in Nigeria, and this has put downward pressure on prices.
It is also possible that Dangote and Bua are simply responding to public pressure. In recent months, there has been a growing outcry from Nigerians over the high cost of cement. This outcry has been amplified by social media campaigns and protests.
Whatever the reason, the decision of Dangote and Bua to crash the price of cement is a positive step. However, it is important to note that the price of cement in Nigeria is still higher than in other African countries. For example, the price of cement in Ghana is N2,500, and the price of cement in Kenya is N2,000.
This suggests that there is still room for Dangote and Bua to reduce the price of cement even further. It is also important to note that the price of cement is just one factor contributing to the high cost of housing in Nigeria. Other factors, such as the cost of land and labor, also play a role.
Overall, the decision of Dangote and Bua to crash the price of cement is a welcome development, but more needs to be done to make housing more affordable for Nigerians.