As at January, it was N1, 800, now they are selling a bag of cement for N2, 300, prompting complaints from Nigerians. Yesterday, President Jonathan summoned the Chairman of Dangote Group, and other cement manufacturers with a directive to crash the prices of the product within 30 days period or face the wrath of the government. The manufacturers have agreed to do all that was necessary to meet the one month time frame.
15 comments:
This is Good news, Jonathan is working
Bobo toh Good oh
o tun ni Luck oh....
Dangote will do anything to please GEJ to continue government’s patronage. He can afford it, but smaller cement manufacturers may not be able to. I wonder why there was a 500Naira hike in just 4 months. Wow!
Is Nigeria a Capitalist or Communist society?..... Just asking.
I hope Dangote won't buy GEJ to a miserable standstill. Just my tots!
GEJ you still have alot of work to do, Thnx in advance for this one, but Titus Sardines has gone up to N160 each.
Lol @ "directive" to reduce price... How about determining what the factors of production / importation / distribution are, and thereby adjusting them ?
Mr President sir, you cannot decree lower price. Its law of demand and supply. Except the cement manaufacturers are collectively fixing price this directive will not stand the test of time.
What goverment can do if they are so concern about high price is...bring in ur own cement and sell at N500. you will see if price will fall or not.
@Anonymous 4:05, I concur.
Is Nigeria a capitalist or communist economy?
Short term good, but long term very bad.
You get higher standards of living when you
1. Create a business environment that reduces costs for business so that they can sell things cheaper. (i.e sort out PHCN to save them diesel money, and railway so that Cement co can transport stuff cheaper)
2. ensure equitable pay (i.e 18k minimum wage is nonsense)
3. reduce taxation on certain goods
4 etc
But you don't force companies to drop prices; you create an enabling environment, reduce competition from abroad, and allow market forces of demand and supply to fix a price.
What happens if 10months down the line the Cement people start downsizing and firing people because the profit margins are too low?
These conditions is why the textile industry started dying and all those workers became unemployed.
Methinks Presido just wants an applause from the crowd when he stands on the balcony.
I'm off to google his Economic advisers.
-Phoenix
That is a right step in the right direction.
Let me seize this opportunity to congratulate you on hitting the 1000 followers mark on your blog.
I want to be like you blogwise when I grow up.
@4:45 haaahh LOL you are very funny it is titus sardine that concern you well if there is none shebi pomor still dey for market abi edon finish?GEJ well done for this and hope more is to come.
biko which kain free-style system of government are we operating in nigeria. we need educated people at the helm of affairs. ha!
I agree with Phoenix at 6.25 p.m. This is extremely short sighted. Can the economy absorb the collapse of the cement industry that runs on diesel? I did some work with Larfarge WAPCO Cement before I left Naija and when the MD was done explaining the cost analysis of their products, I stopped complaining. And its hi-time we knew the kind of society we want to live in. Nigeria is not READY for a free-market economy. We can even learn from other countries (a la US market crash in 2008) and come to the conclusion that a TOTAL market economy is a bad idea. So, maybe a Marxist-Socialist/Capital economy?
PLS LET IT COME DOWN TO 1K I BEG Oh!
Ehen what about kerosene?
Thank you ooo VJ
kerosene is so costly that the poor man as cried and cried, no one is ready to clean their tears.
When the rich cried out once for cement. The President is crying fowl.
O God help us in Nigeria.
This is so not good news for me sha knowing how evil Nigerians can be. Before you know in a bid to reduce the cost of cement, they'll start producing low standard ones and building go dey collapse left right and center like no man's business :-(
Make Jonathan drop price of diesel and fix NEPA before opening mouth to order companies to drop their prices.
The high cost of power is what is driving these prices up.
Post a Comment