Is the Claim that a Bag of Dangote Cement Sells at N5200 in Nigeria and Sold at N1500 in Seme and Benin Republic TRUE?


Habeeb Adisa 


Dangote cement is produced in Nigeria, the raw materials are locally sourced at zero cost, and almost zero taxes. Yet, the price of cement in Nigeria is 5200 naira, while the same is sold in Seme and Benin Republic at 1500 naira.




While it is true that Dangote Cement is produced in Nigeria and the company benefits from locally sourced raw materials and favourable tax conditions, there are several factors that contribute to the pricing of cement. Raw materials, production costs, distribution expenses, transportation fees, government taxes and regulations, market demand, and other economic factors can influence the final price of cement. The claim doesn’t provide a comprehensive breakdown of these factors.

The price disparity mentioned between Nigeria and neighbouring countries might be influenced by various market dynamics, including currency exchange rates, local regulations, import/export fees, and competitive market conditions. It’s important to note that while raw materials might be locally sourced, the production process, labour costs, and other overhead expenses can still impact the final price of the product.

In addition, a report here stated that due to the challenging business environment such as hike in cost of raw materials, cost of purchasing diesel, mounting inflation rate in the in 2022 financial year among others, three cement manufacturing companies, Dangote Cement Plc, Lafarge Africa Plc and BUA Cement Plc struggled to report robust profit.

In addition, the management of Dangote Cement Plc has clarified that the price of a bag of cement from its factories across Nigeria (as at 28th August 2023) is N4,010 in Okpella and N4,640 in Ibese, Obajana, and Gboko. 

Also, the Group Managing Director, Mr Arvind Pathak, advised that it is important to distinguish Dangote Cement’s ex-factory prices from prices at which retailers sell cement in the market.

According to Daily Trust, checks in Cotonou, the commercial capital of the Republic of Benin indicates that cement sells for CFA 3,495 and CFA 4,500, which at the current exchange rate of CFA 1: NGN 1.43 is between N4,997 and N 6,435 per bag.


The claim’s assertion about the production and cost aspects of Dangote cement is partly true, but it oversimplifies the complex factors that contribute to pricing. The price difference between Nigeria and neighbouring countries can be influenced by a range of economic and market conditions. 

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