Business
Reasons we cannot sell cement below N7,000, by Dangote, Bua, Lafarge

Published
12 months agoon
By
Ekwutos BlogNigerian Cement manufacturers have said a surge in their operating costs was responsible for the sudden increase in the prices of the commodity around the country.
This development emerged after a meeting by the Minister of Works, David Umahiattended by his Industry, Trade and Investment counterpart, Doris Uzoka-Anite on Monday in Abuja with representatives of Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc.
After almost three hours of discussion, the Works Minister read the communique of the meeting where the cement manufacturers explained the reasons why the price could not be lower than N7,000 for the time being and why it went up astronomically in the first place.
The manufacturers noted that the challenges of the high cost of gas, import duties, bad road network and the prevailing high rate of foreign exchange against the naira are militating against an instant drop in the price of the commodity.
Kabir Rabiu, the Executive Director of BUA said the meeting was extensive but the manufacturers would abide by the agreement.
According to him, the manufacturers were helpless over the issue of the surging prices.
He said: “First our cost component of energy went from 39 percent to 60 percent because of gas
“The price of gas last year was 415, then to N715, today we are paying more than N1,500. All these issues were discussed and we gave our commitment.
“When our 6 million tonnes of cement is supplied to the market in the few weeks, definitely we will see a sharp drop in prices when that volume hits the market”.
He said the big disparity between demand and supply also played a major role in the price surge considering the season too.
According to him, some manufacturing plants have issues and cannot produce probably by choice or accident, which leads to a reduction in production.
“And being the highest period of cement demand in the country, the tendency that demand will outstrip supply will push the price up,” he added.
He also noted that smuggling across the border contributes to the scarcity of the commodity which added to the surge in price.
He said the commodity is much costlier in Cameroon, for instance, which makes Nigerian cement a target for cross-border smuggling to Cameroon and other neighbouring countries.
The representative of Dangote Cement Plc, the Group Managing Director/Chief Executive Officer, Arvind Pathak, said notwithstanding that the core materials of the commodity are locally sourced, he said spare parts, among several other variables are subject to the mechanism of Import Duties and foreign exchange which makes it difficult for the manufacturers to disregard the prevailing economic indices.
Parts of the communique read by Umahi read: “The government and the manufacturers noted that depending on the location, ideally, the price should not be more than N7,000 and N8,000 to get to the consumer per 50 kg bag of cement.
“The manufacturers, BUA Cement Plc, Dangote Cement Plc and Lafarge Africa Plc have agreed to have their cement price nationwide to between N7,000 and N8,000 per 50kg depending on the location.
“Between the Federal government and cement manufacturers to set up a price monitoring mechanism to ensure compliance for the price we have set today and manufacturers have accepted to sanction, on their own, any of their distributors or retailers found wanting.
“Government expects the agreed price to drop after securing government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.
“It was also agreed that the government will encourage the emergence of at least six cement manufacturers to augment the three existing companies.
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Business
Keystone Bank Shares Forfeited as Firm Admits to N20bn AMCON Fraud

Published
4 hours agoon
February 11, 2025By
Ekwutos Blog
Lagos State Special Offences Court Judge, Justice Ramon Oshodi, has ordered the forfeiture of 6.3 billion Keystone Bank shares to the Federal Government following Sigma Golf Nigeria Limited’s guilty plea to a N20 billion fraud involving AMCON funds.
The firm, represented by its Chairman, Umaru Modibbo, admitted to fraudulently diverting funds through Heritage Bank to acquire Keystone Bank.
Meanwhile, former AMCON Managing Director, Ahmed Kuru, pleaded not guilty and was granted N50 million bail.
The EFCC, led by Chairman Olanipekun Olukoyede, accused Kuru and fugitive ex-Heritage Bank MD, Ifie Sekibo, of dishonestly converting AMCON funds and laundering another N20 billion to conceal its origins.
Under a plea bargain agreement, the court convicted Sigma Golf Nigeria Limited, ordered its winding up, and mandated the forfeiture of all Keystone Bank shares under its control.
The court also accepted a non-prosecution deal for Modibbo.
With Kuru’s passport seized and his trial set for March 7, the case underscores the EFCC’s crackdown on high-profile financial crimes.
Business
NNPCL under pressure to reduce petrol price amid rivalry with Dangote Refinery

Published
11 hours agoon
February 11, 2025By
Ekwutos Blog
The Nigerian National Petroleum Company Limited mulls fresh premium motor spirit price reduction as MRS filling station, in partnership with Dangote Refinery, announced a fuel pump price cut on Monday.
The National President of Petroleum Products Retail Outlet Owners Association, Billy Gillis-Harry, and Spokesperson for Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, made this known in a separate exclusive interview with Ekwutosblog.
The development follows MRS filling station’s announcement of a fuel price reduction on Monday, for the first time in 2025.
The oil firm stated on Monday in its official X account that its pump price had dropped to N925 per litre in Lagos, South West (N933), North (N945), and South-East (N955). The new per litre price drop is from around N970 previously sold by the company.
This comes weeks after Dangote Refinery, on February 1, 2025, announced an ex-depot price drop to N870 from N970 per litre.
Reacting, Gillis-Harry and Ukadike were optimistic that NNPCL will, in the coming days, announce a PMS price reduction to remain relevant in the country’s downstream sector.
Gillis-Harry said that “NNPC has no choice but to reduce petrol retail prices because it is not possible to see a product at a cheaper price and still go for NNPCL.”
Similarly, Ukadike explained that since the price war between Dangote Refinery and NNPCL persists, the latter cannot afford to do anything other than a price reduction.
“It is likely that NNPCL will drop its price because there is a price war with Dangote Refinery. Once Dangote Refinery announces a price drop, NNPC will follow suit,” he said.
Why petrol price reductions by Dangote and NNPCL is not impacting transportation costs, others
Despite the recent petrol price reduction by MRS filling stations, Gillis-Harry noted that the cost of transportation and food prices have remained stagnant.
According to him, the weak purchasing power of Nigerians is the major reason the fuel price reduction is not impacting food prices and transportation costs.
“If you watch, the cost of transportation has not reduced in spite of the reduction of fuel at the retail market. That tells you that the purchasing power of Nigerians is very weak.
“In my opinion, we need to engage Nigerians in production activities such as farming, fishing, and technology.
“Go to the park, you will see that the price of transportation cost has not been impacted by the fuel reduction,” he stated.
However, Ukadike said that the impact of the petrol price reduction will be felt on transportation, goods, and services in the long run.
“The impact will be gradual; it will eventually impact transportation and others,” he noted.
Concerns over frequent petrol price adjustments
Gillis-Harry frowned at the frequent adjustments of petrol price by actors in the oil and gas sector.
He noted that incessant price adjustments will affect petrol security.
He added that arbitrary petrol price hikes cause serious losses to marketers who might lift fuel stock before the arrival of new stock.
“There was a lot of fuel that was purchased at the old price that is still in the system, and they have not been sold.
“Marketers cannot sell below the cost price. It is completely impossible for someone to buy a product at N970 per litre and sell below the purchase price.
“MRS that is trying to deepen the distribution process with PETROAN and Dangote Refinery still has the same challenge of the buying power,” he told DAILY POST.
DAILY POST reports that last December, Dangote Refinery had slashed its petrol ex-depot price from N899.50 per litre to N970.
NNPCL also announced a PMS price drop to petroleum markets.
The price rivalry between NNPCL and Dangote pushed fuel prices down in the last lap of 2024.
Business
Kaduna electricity workers suspend strike

Published
3 days agoon
February 8, 2025By
Ekwutos Blog
The National Union of Electricity Employees, Kaduna Electricity Distribution Company chapter, has suspended its indefinite strike that led to a prolonged power outage in Kaduna, Zamfara, Sokoto and Kebbi states.
Ekwutosblog reports that this is coming after the intervention of Governor Uba Sani, who held a meeting with the management of Kaduna electric and the labour union at the Kaduna State Government house on Friday night.
Governor Sani, while addressing the meeting, expressed concern over the prolonged power outage caused by the strike, which he noted has affected many residents and businesses across Kaduna state.
The Governor, however, appealed to the warring parties to reconsider their decision.
The electricity workers, at the end of the meeting, agreed to restore power supply to Kaduna and all the franchise states under Kaduna Electric with immediate effect.
The meeting also resolved that both the management and the labour union meet together and take a decision on the planned downsizing of the workforce, while the management will also halt its earlier decision to sack workers.
The National Union of Electricity Employees had on Monday, February 3rd, 2025, embarked on an indefinite strike over an alleged plan by the management to dismiss 900 staff of the distribution company
However, in a statement on Tuesday, January 4, the company explained that contrary to claims by the union, only 450 workers were disengaged from service.
According to the statement signed by the spokesman of Kaduna electricity distribution company, Abdulazis Abdullahi, the decision to sack some workers was driven by significant operational and financial challenges that had hindered the company’s ability to meet its market and operational obligations.

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