Dangote Cement has just announced
a slash in its cement price, from a whooping N1700 per bag to N1000 per bag.
And here’s popular Tv Presenter, Sola Salako's take on the new price slash.
“I hear Dangote just
singlehandedly, crashed the price of cement to N1,000 from N1,700! Obviously,
this is another move in the attempt to stifle competition coming on the heels
of getting SON to re-grade cement classification in its favour via political
patronage.
While this seems like a benefit
for consumers in the short term, I fear it is very inimical to growth in that
sector in the long term. The few competing brands may eventually close down if
they don’t survive the price war after emerging bruised from the pseudo
classification battle. More unemployment looms…
Just as Dangote has the singular
power to determine pricing downwards, who will challenge him when he pushes
price to N3,000 after he has successfully run competition out of the market?
This is akin to a rat nibbling away at your feet and blowing soothing air so
you don’t feel it…until it hits blood!
Nothing to rejoice about here if
we are long term oriented people, unfortunately, Nigerians are not, so….”
Do you agree with her?
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