Cement more expensive in Benin, 50kg bag sells for over N6,000

The average price of a 50kg (32.5r) bag of cement in Benin Republic is 4,200 CFA Franc (Cefa), which is N6,216, according to an investigation by Daily Trust. The current exchange rate stands at 1.00 Cefa to N1.48 The investigation was in response to allegations that Dangote cement is cheaper in neighboring countries, especially Benin […]

The average price of a 50kg (32.5r) bag of cement in Benin Republic is 4,200 CFA Franc (Cefa), which is N6,216, according to an investigation by Daily Trust. The current exchange rate stands at 1.00 Cefa to N1.48

The investigation was in response to allegations that Dangote cement is cheaper in neighboring countries, especially Benin Republic than Nigeria.

The price of a 50kg bag of cement goes for 4,000 Cefa, 4,100 Cefa and 4,200 Cefa at major depots in Akpakpa, Ghandi and Etoile Rouse (Red Star) sections in Cotonou.

Daily Trust discovered that contrary to insinuation, Dangote Cement is not available in Benin Republic as the government of the West African country encourages local production of cement.

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To ensure the success of the policy, there is an imposition of about 51% duty and other taxes on imported cement to discourage importation. On the other hand, the government also regulates the price of cement to ensure stability.

The Chief Executive Officer, Marketing Challenge Agency, Mr. Dia Ibrahim Kola, based in Cotonou, asserted that the Benin government encourages local production of cement.

Kola added that cement production is one of the drivers of the country’s economy, hence the need for the Benin government to set retail price of cement in a bid to regulate the market.

“For the government, there is only one price. The price is CFA 88,000-9000 per tonne while in the market, the retailers will sell it at the rate of CFA 4150 or 4200 for a 50kg bag depending on the location,” he said.

Asked about the brands of cement mostly used for construction, he said most artisans use locally produced cement in the country, adding that imported cement is expensive due to the high cost of stamp duty to export into the country.

“Cements imported are very high and the producers spend a lot on marketing to show that they are the best quality but consumers usually say the cements are the same as the locally produced ones,” he said.

This is in line with the data released by Global Cement in 2018, which showed that Benin has three integrated cement plants that share 2 million tonnes per year of capacity, as well as a 0.2 million tonnes per year grinding plant.

The report stated that the largest producer in the country is Cimenterie du Benin, which operates 1.3 million tonnes per year. Masse plant and Société des Ciments d’Onigbolo, 50% owned by LafargeHolcim, is the second-largest. It operates a 0.7 million-per-year integrated plant in Cotonou.

HeidelbergCement subsidiary Cimbenin also operates a 0.3 million tonnes per year plant in Cotonou based on ball mill technology from Fives FCB. Reda Cimenterie also operates an integrated cement plant in Cotonou.

Dangote cement of higher grade, not available in Benin

Daily Trust discovered that while Dangote Cement is 42.5R grade, most cement on sale in Benin are mainly 32.5R grade.

Dangote cement is also not officially exported to Benin Republic, however, the country is used as a transit route to export cement to Togo, it was learnt.

Daily Trust recalled that following the outburst on social media, the management of Dangote Cement Plc had clarified that the price of a bag of cement from its factories across Nigeria (as of 28th August 2023) is N4,010 in Okpella and N4,640 in Ibese, Obajana, and Gboko. Including transportation costs and the location of delivery, prices could range between N5,000 to N5,300 per bag.

Dangote Cement’s Group Managing Director, Mr Arvind Pathak, advised that it is important to distinguish Dangote Cement’s ex-factory prices from prices at which retailers sell cement in the market.