The Federal Government, in collaboration with cement manufacturers such as BUA, Dangote, and Larfarge, has established the pricing range for a 50kg bag of cement at N7,000 to N8,000 in various places around the country.
Senator David Umahi announced the pricing adjustment following an extended conversation with major cement industry leaders in Abuja on Monday.
Despite the agreed-upon price reduction, manufacturers stressed that the fall from current market rates is subject on the government’s commitment to addressing serious difficulties in the industry.
The programme, backed by President Bola Tinubu, seeks to address the spike in cement costs, which Senator Umahi described as exorbitant and harmful to the government’s economic growth goals.
Factors behind the rise in cement costs
In his speech, the minister mentioned various issues that contributed to the high costs, including smuggling, bad road conditions, rising energy costs, and the foreign exchange crisis.
He did, however, acknowledge the manufacturers’ willingness to lower prices if these challenges are adequately handled by government measures.
He went on to say, “Ideally, they noted that cement price and retail price to a consumer should not cost more than between N7,000 and N8,000 per 50 kg bag of cement.”The government and cement makers Dangote Plc, BUA Plc, and Lafarge Plc have agreed to set a statewide cement pricing range of N7,000 to N8,000 per 50 kg bag, based on location.This means that the price varies based on location. Going ahead, the government recommended producers to establish a price monitoring process to assure compliance with the current prices.”
What You Should Know
In recent weeks, the price of a 50kg bag of cement has reached an all-time high of more than N9,500 in several towns across the country. The source of the hike has been identified as an increase in energy costs and other operating expenses.