Nigerian stocks fell 1.72 percent on Monday to a more than a 10-month low, dragged down by losses at its biggest listed company, Dangote Cement. The Lagos bourse stock index dropped to 24,581 points, a level it last touched last April.
Dangote Cement, majority-owned by Africa’s richest man Aliko Dangote and accounting for a third of total market capitalisation, fell 7.03 percent to 149.15 naira per share.Cement makers in Nigeria, pressured by rising costs, have resorted to price increase that saw an uptick in revenues.
Industry leader Dangote cement announced a 37 percent price increase in the price of the product to N2100 (N42000 per ton) from N1500 in 2015.
The largest producer of the building material said the hike in price will help to offset the effects rising costs on margins.
Gas shortages at the factory, fueled by incessant attacks by militants in the Niger Delta Region have forced firms to switch to a more expensive source of energy.
Price per ton after adjustment of $138 in Nigeria is the highest in Sub Sahara Africa. This compares with $113 in Ghana, $114 in Cameroun, $76 in Senegal, $95 in Ethiopia, $87.3 in South Africa and $80 in Zambia.