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FG, shareholders commend Dangote Cement for investment

By BusinessNews Staff on November 18, 2014

The Federal Government, stakeholders in the cement sector as well as shareholders have hailed Dangote Cement Plc over the huge investments in the production of the essential construction material as well as the recent slash in the price of the commodity, describing it as unprecedented.

The commendation came just as the management of Dangote Cement denied that the price cut was motivated by monopolistic tendencies.

The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said at a stakeholders’ meeting in Abuja that the decision of Dangote Cement to bring down the price of cement was a patriotic one in line with the aspiration of Nigerians and the government.

According to him, the Federal Government has attracted new private sector investments in the cement sector to the tune of $7bn within three years and that it is happy with that.

“Our main focus for the cement sector is to improve the standard of cement and to bring the price down more; cement manufacturers must do it themselves just as Dangote Cement has done because we do not do price regulation,” the minister said.

Aganga’s sentiment, according to a statement by the company on Sunday, came amidst the expression of surprise by many who thought such a price slash was not be possible in the next 10 years.

To buttress his claim, the minister said in 2011, the installed capacity in the cement sector was 16.5 million metric tonnes per annum, but that today it was 39.5 million metric tonnes.

“When we came in, there were about $9bn investment in the cement sector, but today it is more than $15bn. In 2011, the direct and indirect jobs from the cement sector were less than 6,000; today, the sector provides about 2.2 million direct and indirect jobs,” he added.

The Chairman, Trusted Shareholders Association, Mr. Mukhtar Mukhtar, said the cement price slash was a positive development for the Nigerian economy, adding that it would create jobs, encourage the poor and middle class to build houses, and bring down house rents on the long-run.

“I want to on behalf of shareholders commend Aliko Dangote for yet another feat,” he was quoted as saying.

The Coordinator of the NGO Network, Mr. Muhammad Attah, said Dangote Cement deserved commendation, adding that the company had invested more than any other in the cement sector in the history of Nigeria.

[Punch]

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