The Federal Government and Cement Manufacturers in the country have agreed to peg the price of a bag of cement between N7,000 and N8,000.
Special Adviser ( Media) to the Minister of Works, Barr. Uchenna Orji announced the development in a statement issued on Monday, February 19, 2024.
According to the statement, the agreement was reached at a meeting between the Minister of Works, Engr. David Umahi, the Minister of Industry Trade and Investment, Dr. Doris Uzoka-Anite, representatives of Dangote Cement Plc, BUA Cement Plc, Larfage Africa Plc and Cement Producers Association in Abuja.
In their separate remarks, the Minister of Works said the meeting was aimed at addressing the concerns of Nigerians on the escalating cost of cement in Nigeria marked by the disparities between the ex-factory price and the market price of cement.
On her part, Minister of Industry, Trade and Investment 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, and expressed surprise that the whole idea of the BIP on the management and development of cement manufacturing industry was not bearing the desired fruit.
The manufacturers gave reasons for the price hike to include; cost of gas, high import duty on spare parts, bad road network, high foreign exchange and smuggling of cement to neighbouring nations.
In response, the Federal Ministry of Industry, Trade and Investment promised to seek some remedies from Mr. President on cost of gas and import duties.
Also, the Federal Ministry of Works resolved to give more attention to fixing of the roads, especially around locations of the manufacturers.
On the issue of smuggling cement, the Federal Ministry of Industry, Trade and Investment to deepen the already started an engagement with the National Security Adviser on how to stop the smuggling.
Going forward, the Government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, and manufacturers have willingly accepted to do so and to sanction any of their distributors or retailers found wanting.
The meeting agreed to reconvene in 30 days to review progress made.
