Nigeria's Dangote says jacks up cement prices to mitigate production cost

Nigeria’s Dangote Cement said on Wednesday it has jacked up prices of its commodity to mitigate the effect of rising cost of production, a statement from the company said.
It said it has increased the ex factory price of its product by 600 naira, slight higher than the price before last year September price slashed. Dangote cement was selling at the open market at 1,550 naira per 50 Kg bag before the price hike, which was effected on Monday before the announcement in a statement to the Nigerian Stock Exchange

The company said the disruption of gas supply which was its preferred fuel has deteriorated in the third quarter of the year, while the use of alternative fuels such as LPFO and coal have led to a substantial cost increase.
“In addition, the naira has experienced a significant devaluation against the dollar over the past few weeks. Both of these external factors have combined to increase our costs substantially in our largest market.
Dangote cement has assured that it was working on its coal mine initiative in Nigeria and expect to begin mining process by November in its drive toward self-sufficiency and eliminate dependence on gas supplies and imported coal.
“Own-mined coal wil be cheaper than gas, which is priced in dollar but paid in naira… this will reduce our need for foreign currency at this difficult time for the Nigerian economy,” the company said.
It said it hope to open new plants soon in Congo and Sierra Leone to further strengthen the company profitability ad generate additional foreign exchange earnings.