The management of Dangote Cement Plc (DANGCEM) has announced a N600 increase in the price per bag of its 50kg cement.
The primary reason sighted by the company for the latest price hike is all too well known. It includes substantial cost inflation, significant energy cost increase owing to unfavourable mix and significant Nigerian government devaluation against the USD.
While the gas supply shortage that has badly affected energy mix beyond control, market watchers argue that the price cut in September last year clearly underestimated the magnitude of negative impact forex supply shortages would have on businesses and the Nigerian economy in 2016.
Besides price increase, the company said the installation of coal mills and mining initiative had accelerated, and that its own coal mining is now expected to commence in November in Kogi State.
