Chief Executive Officer at Purples Consult Limited,
Sola Salako has shared her thoughts on the price slash by
Dangote Cement Plc. Yesterday, we reported it here that top cement manufacturer, Dangote Cement announced a slash in its cement price, from a whooping N1700 per bag to N1000 per bag. Below is the TV Personality's take on the new price slash.
“I hear Dangote just single-handedly, crashed the price of cement to N1,000 from N1,700! Obviously, this is another move in the attempt to stifle competition coming on the heels of getting SON to re-grade cement classification in its favour via political patronage.
While this seems like a benefit for consumers in the short term, I fear it is very inimical to growth in that sector in the long term. The few competing brands may eventually close down if they don’t survive the price war after emerging bruised from the pseudo classification battle. More unemployment looms.
Just as Dangote has the singular power to determine pricing downwards, who will challenge him when he pushes price to N3,000 after he has successfully run competition out of the market? This is akin to a rat nibbling away at your feet and blowing soothing air so you don’t feel it…until it hits blood!
Nothing to rejoice about here if we are long term oriented people, unfortunately, Nigerians are not, so….”
Do you agree with her?
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