by Osita Chinedu
The Minister of Housing and Urban Development, Ahmed Dangiwa has threatened the major cement manufacturers in Nigeria that the government would open up and allow massive importation of cement if the prices of cement was not reduced across the country.
This was coming a day after the Federal Government had a meeting with the major cement manufacturers Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc, and agreed that the retail price of the commodity per 50kg bag would be reduced to a range of N7,000 and N8,000 across the country depending on the location.
According to a communique issued after the meeting by the Minister of Works, Dave Umahi, “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.”
Giwa went on to attest that the local cement manufacturers are enjoying the benefits of the friendly and supportive policies of the government hence should reciprocate.
“The government stopped importation of cement in other to empower you to produce more and sell cheaper. Otherwise the government can open the borders for mass importation of cement, the price will crash, but you will have no business to do.”
The Minister further argued that the reasons of the cement manufacturers on high cost of gas and manufacturing equipment as well as poor road networks across the country could not have been enough to justify the astronomical price increase.
He blamed the situation however, on the non-involvement of the Cement Manufacturers Association of Nigeria (CEMAN) with the pricing system of the wholesalers and retailers.
According to him, the association should not just fold their arms and watch things going wrong.
“One person cannot be selling at N3500 per bag and another selling at N7000 per bag and you cannot call them to order. The association is expected to monitor price control, otherwise the association has no need to exist,” he emphasized.
At retail outlets in Enugu and its environs, a 50kg bag of cement now costs between N12,500 and N13,000. A retailer who refused to be named blamed the rising cost of cement on the high cost of production, transportation and the persistent rise of Foreign Exchange. According to him, they sell according to the price they bought the commodities from distributors and other wholesale marketers.
