Nigerian govt, major manufacturers agree on cement price
Major cement manufacturers in Nigeria, Dangote, BUA and Lafarge have agreed that the price of a bag of cement will not exceed between N7,000 and N8,000.
The resolution was reached following a meeting between the Minister of Works, David Umahi, the Minister of Industry, Trade and Investment, Doris Uzoka-Anite as well as representatives of BUA Cement, Dangote Cement, Lafarge and Cement Producers Association on Monday.
The recent development follows the increase in prices of cement in the country reaching as high as N13,000 in some cement retail shops in Abuja.
According to a communique issued after the meeting, Mr Umahi said the cement manufacturers admitted the high prices in some parts of the country while noting that the retail price should not cost more than N8,000 per 50kg bag of cement.
“The essence of this meeting is the concern of the public and also the fact that this ministry since August has been preaching on how we can utilise our local contents in the construction of our roads. At the time we think we are winning we are now having these issues.
“Certain issues including smuggling, bad roads, high energy costs, and the forex crisis caused the high price but manufacturers have expressed their readiness to bring down the prices in future.
“The cement manufacturers and the government noted that the current high price of cement is 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. Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc have agreed that cement cost will not be more than between N7,000.00 and N8,000.00/50kg bag depending on the location,” the communique read.
Going forward, the communique said the government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance and manufacturers have willingly agreed to do so. There have also been measures to sanction any of their distributors or retailers found wanting.
“The government expects the agreed price to drop after securing the government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network,” it said.
READ ALSO: Cement Price: FG promises to fix roads, reduce import duties
In her remarks, Ms Uzoka-Anite said it was worrisome that the price of cement was surging despite her ministry’s regulatory policies and the Backward Integration Programme (BIP) introduced to manage cement price and development.
She expressed worry that the whole idea of the BIP on the management and development of cement manufacturing industry is not bearing the desired fruit.
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Major cement manufacturers in Nigeria, Dangote, BUA and Lafarge have agreed that the price of a bag of cement will not exceed between N7,000 and N8,000.
The resolution was reached following a meeting between the Minister of Works, David Umahi, the Minister of Industry, Trade and Investment, Doris Uzoka-Anite as well as representatives of BUA Cement, Dangote Cement, Lafarge and Cement Producers Association on Monday.
The recent development follows the increase in prices of cement in the country reaching as high as N13,000 in some cement retail shops in Abuja.
According to a communique issued after the meeting, Mr Umahi said the cement manufacturers admitted the high prices in some parts of the country while noting that the retail price should not cost more than N8,000 per 50kg bag of cement.
“The essence of this meeting is the concern of the public and also the fact that this ministry since August has been preaching on how we can utilise our local contents in the construction of our roads. At the time we think we are winning we are now having these issues.
“Certain issues including smuggling, bad roads, high energy costs, and the forex crisis caused the high price but manufacturers have expressed their readiness to bring down the prices in future.
“The cement manufacturers and the government noted that the current high price of cement is 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. Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc have agreed that cement cost will not be more than between N7,000.00 and N8,000.00/50kg bag depending on the location,” the communique read.
Going forward, the communique said the government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance and manufacturers have willingly agreed to do so. There have also been measures to sanction any of their distributors or retailers found wanting.
“The government expects the agreed price to drop after securing the government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network,” it said.
READ ALSO: Cement Price: FG promises to fix roads, reduce import duties
In her remarks, Ms Uzoka-Anite said it was worrisome that the price of cement was surging despite her ministry’s regulatory policies and the Backward Integration Programme (BIP) introduced to manage cement price and development.
She expressed worry that the whole idea of the BIP on the management and development of cement manufacturing industry is not bearing the desired fruit.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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