A common dialogue round cement in Nigeria revolves round one identify—”Dangote”. There may be envy across the identify for its wealth from manufacturing operations, together with cement manufacturing. Most instances, although, the identify is “dragged” for the unsteady and rising costs of the limestone byproduct.
Constructing builders and even Nigerian lawmakers have blamed their initiatives’ excessive value and sluggish growth on rising cement costs. Final 12 months, the value of a 50 kg bag of cement rose by 44% from ₦2,500 to ₦3,600. In the present day it’s about ₦4,000.
The assumption for a lot of is that we’ve got rising cement costs as a result of Dangote Cement, which has the biggest market share (60%) within the trade, has no competitors. But it surely has rivals, each international and native, which can be vying for market share. So how come their presence doesn’t result in aggressive pricing?
Let’s return to ECON 101 to clarify pricing in a market construction
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