The Federal Government has announced its intention to prioritize road repairs and explore solutions to address the high cost of gas and import duties, with the aim of reducing the exorbitant price of cement across the country.
This consensus emerged from a meeting between the government and major cement manufacturers held on Monday in Abuja.
The meeting, attended by Sen. David Umahi, Minister of Works, Minister of Trade and Investment, Mrs. Doris Uzoka-Anite, and representatives from Dangote Plc, BUA Plc, and Lafarge Plc, resulted in a signed communiqué.
The communiqué acknowledged the challenges highlighted by the manufacturers, including the high cost of gas, elevated import duties on spare parts, inadequate road infrastructure, currency exchange fluctuations, and cement smuggling to neighboring countries.
Consequently, the meeting determined that the Federal Ministry of Industry, Trade, and Investment would pursue solutions from President Bola Tinubu concerning gas costs and import duties.
The Federal Ministry of Works pledged to prioritize road repairs, particularly in areas surrounding the manufacturers’ facilities.
Regarding cement smuggling, the Federal Ministry of Industry, Trade, and Investment committed to intensifying its collaboration with the National Security Adviser to combat the issue.
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 ₦7,000.00 to ₦8,000.00 per 50kg bag of cement.
Henceforth, the three leading cement manufacturers—Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc—have reached a consensus that the price of cement should range between ₦7,000.00 and ₦8,000.00 per 50 kg bag, contingent on the location.
Furthermore, the government has advised the manufacturers to establish a price monitoring mechanism to ensure adherence, and the manufacturers have willingly agreed to implement such a system and penalize any distributor or retailer found violating the agreed-upon prices.
The government anticipates a reduction in the agreed-upon price following its interventions to address the manufacturers’ challenges concerning gas, import duties, smuggling, and infrastructural improvements.
Additionally, it was agreed that introducing at least six more players into the cement manufacturing sector would enhance market competitiveness and product availability.
Mr. Kabiru Rabiu, the BUA representative and Group Executive Director, revealed that BUA is preparing to release 6 million metric tonnes of cement within the next three weeks to enhance nationwide availability of the product.
The stakeholders have agreed to reconvene in 30 days to assess the progress achieved.