Dangote Cement plc already has support in one of the competitors, Bua Group, led by billionaire merchant, Samad Rabiu. He lauded his rival’s will at slicing the price and promised to follow suit with a similar cut on cement produced by his plants in Benin and Sokoto.

Sijibomi Ogundele, property developer and CEO, Sujimoto Construction Ltd., described the reduction of prices by Dangote Cement as a laudable accomplishment by the company and a bonus of sorts to those in the real estate industry.

“This is good news for every Nigerian who aspires to build a house or even trade in the cement industry. We are all optimistic and find this a welcoming gesture by Nigeria’s foremost conglomerate and a sign of better things to come,” Ogundele said.

•Siji Ogundele

Akinmoladun Olaniyi, secretary, Lagos State Bricklayers Association, told this magazine that Dangote Cement plc deserved commendation for the price reduction, adding that the slash will definitely lead to an increase in building and construction, thus creating more jobs for members of his association.

But some industry analysts see the new price cut as a bitter pill for the rival cement manufacturing companies to swallow.

Sola Salako, television presenter and consumer rights advocate, believes that Dangote Cement plc’s crashing of the price is to stifle competition at the end of the day.

“With Dangote just single-handedly crashing the price of cement, this seems like a benefit for consumers in the short term, but 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,” Salako opined, explaining that for a long term-oriented people, the news was nothing to rejoice about.

“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,” she added.

But Edwin allayed such fears of job losses, pointing out that if anything, it would lead to job creation. “We were not producing 32.5 grade before but because of the standardisation, which comes with the need to offer all our customers the benefit of choice from out bouquet of products, we have introduced it. That is more work for more people,” he said.