Nigerians are not taking it easy with Africa’s richest man, Aliko Dangote for selling a bag of cement for N1,800 in Zambia and selling same for N3,500 in Nigeria; a N100 less of double the Zambian rate.
According to reports, the Zambia Board of Commissioners of the Competition and Consumer Protection Commission said it ordered Lafarge Zambia Plc, Dangote Cement Zambia Limited and Mpande Limestone Limited to revert to the cement prices ranging between Kwacha 99 to Kwacha 110 (N1800 in naira) after there was uproar over its recent increment.
Mcebiscoo.com gathered that the Board also fined Lafarge Zambia Plc and Mpande Limestone Limited 10% of their annual turnovers for the year 2019 and another 10% of their 2020 annual turnovers for price fixing and division of markets.
The Board, however, said it was lenient with Dangote Cement Zambia Limited, for having cooperated with the Commission during investigations.
According to Zambia News, the decision to fine Lafarge Zambia Plc and Mpande Limestone Limited was made during the 49th Board of Commissioners Meeting for the Adjudication of Cases held in Lusaka on March 30, 2021.
This was after an exhaustive investigation by the Commission initiated in January 2020 following the Commission’s observation of a sustained increment of cement prices from an average of K55 to K100 per 50kg bag between July 2019 and January 2020.
The continuous price increment of cement by the parties led the Commission to suspect that there was possible collusion and an agreement to fix the prices of cement and the Commission carried out investigations for a year.
In a statement issued by CCPC Senior Public Relations Officer, Namukolo Kasumpa, the Board has also ordered Lafarge Zambia Plc, Dangote Cement Zambia Limited and Mpande Limestone Limited to revert to the pre-cartel prices ranging between USD 4.50 – USD 5 (K99 – K110) for a period of one year from the date of receipt of the Board decision pursuant to Section 59 (3) (b) of the Act.
“Additionally, that Lafarge Zambia Plc, Dangote Cement Zambia Limited, Mpande Limestone Limited submit monthly average ex-works prices and any price adjustments be indexed to the exchange rate and be submitted to the Commission for review pursuant to Section 58 (1) of the Act,” the Board stated.
When contacted a top staff of Dangote Cement said the company has not increased its pricing template since 2019. According to him, the retailers and other middlemen are responsible for the price differentials in the country.
‘We have not hiked the price of cement. If you observe any hike, it is not approved by Dangote Cement,’ he said.
Meanwhile, Nigerians in their numbers in a reaction to the price difference took to their social media accounts to bash African richest man for neglecting his home front to make others elsewhere happy.
They also demand immediate reversal to the Zambian price model if he (Dangote) wants to continue business in Nigeria.
See reactions below;