Babatunji wusu –
To reduce the commodity’s current market price, the Federal Government and cement producers came to an agreement on a number of terms.
Manufacturers have committed to charge a retail price of N7,000 to N8,000 for a 50kg bag of cement, depending on the region across the country.
According to the manufacturers, the reduction in cement prices from the present market price of N13,000 would be contingent upon the implementation of specific government measures aimed at addressing significant issues encountered by the industry.
They made this statement on Monday at the Ministry of Works headquarters in Abuja during a meeting with Ministers Dave Umahi of Works and Dr. Doris Uzoka-Anite of Industry, Trade, and Investment.
The producers listed a number of difficulties, including high fuel prices, import taxes on their spare parts, poor road systems, smuggling, and high foreign exchange (FX) rates.
After a three-hour discussion, Umahi read the press release and bemoaned the present cement price, calling it anomalous and harmful to the economic development that the current administration seeks.
The minister emphasized that although manufacturers have shown their desire to lower costs in the future, the government will address some of the causes that led to the high prices.
He said, “The meeting discussed extensively the current prices of cement vis a vis the challenges from the manufacturers. They talked about their challenges, ranging from the high cost of gas, high import duties from their spare parts, bad road network and, of course, the high FX rate.
“They also talked about the issue of cement across our borders and how it is creating scarcity and high increase. We agreed that the trade ministry will seek some remedies from the president on the high cost of gas and the issue of import duties and fixing of the roads within the distribution corridors.
“The cement manufacturer has noted and the government that the present high cost of cement in the market is very much abnormal in some locations nationwide. Ideally, they noted that cement price, and retail price to a consumer should not cost more than between N7,000 to N8,000 per 50 kg bag of cement.
“Therefore, the government and the cement manufacturers, which are Dangote Plc, BUA Plc and Lafarge Plc have agreed to have their cement price nationwide between N7,000 to N8,000 naira per 50 kg pack of cement, depending on the locations, which means that this price depends on the locations. Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today and manufacturers have willingly accepted to do that and sanction any of their distributors or retailers found wanting.”
