4 ways we’ll bring down the price of cement – Fed Govt

4 ways we’ll bring down the price of cement – Fed Govt

Tuesday, February 20, 2024 10:16 am

Federal Government's meeting with cement manufacturers

Federal Government’s meeting with cement manufacturers

When the major cement manufacturers held a meeting with the Federal Government officials yesterday in Abuja, they agreed on four solutions to reduce the cement price. The federal government, according to a NAN report, said that it would give more attention to fixing roads and seeking some remedies for the cost of gas and import duties to bring down the astronomical price of cement nationwide.

Sen. David Umahi, Minister of Works and his counterpart, Minister of Trade and Investment, Mrs Doris Uzoka-Anite, and the three major cement manufacturers – Dangote Plc, BUA Plc and Lafarge Plc signed the communiqué.

According to the document, the government had taken note of the challenges enumerated by the manufacturers which include the cost of gas, high import duty on spare parts, bad road network, high foreign exchange and smuggling of cement to neighbouring nations.

Therefore, the meeting concluded that the Federal Ministry of Industry, Trade and Investment would seek some remedies from President Bola Tinubu on the cost of gas and import duties.

The Federal Ministry of Works would give more attention to fixing the roads, especially around the locations of the manufacturers.

On cement smuggling, the Federal Ministry of Industry, Trade and Investment was to deepen the engagement with the National Security Adviser on how to stop the menace.

The meeting also agreed that the current high price of cement was abnormal in some locations nationwide.

“Ideally, cement retail prices should not cost more than N7,000.00 to N8,000.00/ 50kg bag of cement,” it was said.

Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc and Larfarge Africa Plc have agreed that cement cost should not be more than between N7,000.00 and N8,000.00/50kg bag, depending on the location.

In addition, the government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, and manufacturers have willingly accepted to do so and sanction any distributor or retailer found wanting.

The government expects the agreed price to drop after securing its interventions on the challenges of the manufacturers on gas, import duty, smuggling and better road network.

Furthermore, they agreed that at least six more players had to be introduced into the cement manufacturing sector to make the market more competitive and products more available.

The BUA representative, Mr Kabiru Rabiu, Group Executive Director, disclosed that BUA was preparing to release six million tonnes of cement within the next three weeks to make the product more available nationwide.

The stakeholders agreed to reconvene in 30 days to review the progress made


Join The Conversation

What do you think?

This site uses Akismet to reduce spam. Learn how your comment data is processed.