Cement Manufacturers List Conditions To Crash Spiraling Price

Written by on February 20, 2024

Cement Manufacturers have agreed to sell a 50kg bag of cement at a retail price between N7,000 and N8,000, depending on location nationwide.

The cement manufacturers, however, asked the government to address the challenges of gas shortage, import duty, smuggling and road network.

The Minister of Works, Dave Umahi, disclosed this after a meeting with leading cement manufacturers on Monday in Abuja.

He added that the impact of the cement price cut would be felt within 30 days.

The meeting was against the backdrop of the ballooning prices of cement to around N13,000 in retail stores in the Federal Capital Territory and Enugu.

Findings by the PUNCH indicated that the price hike was attributed to wholesalers reselling to retailers at higher prices.

Umahi lamented the current rate, stating that it was abnormal and detrimental to economic prosperity sought after by the current administration.

Reading the communiqué after the three-hour meeting directed by President Bola Tinubu, the minister said certain issues, including smuggling, bad roads, high energy costs, and the foreign exchange crisis caused the high prices.

He stressed that manufacturers had expressed their readiness to bring down prices in the future.

He said, “The meeting discussed extensively the current prices of cement vis-à-vis the challenges from the manufacturers. They talked about their challenges ranging from the high cost of gas, high import duties from their spare parts, and bad road network and, of course, the high FX rate.

“They also talked about the issue of cement across our borders and how it is creating scarcity and a high increase. We agreed that the trade ministry will seek some remedies from the President on the high cost of gas and the issue of import duties and fixing of the roads within the distribution corridors.

“The cement manufacturers and the government have noted that the present (sic) high cost of cement in the market is very much abnormal in some locations nationwide. Ideally, they noted that retail price to a consumer should not cost more than between N7,000 to N8,000 per 50 kg bag of cement.”

According to the minister, the government and the cement manufacturers, which are Dangote Plc, BUA Plc and Lafarge Plc have agreed to have their cement prices nationwide between N7,000 to N8,000 per 50 kg pack of cement, depending on the locations.

“The high cost of cement in neighbouring countries has made smuggling lucrative. The cost of cement in Chad and Cameron is about N15,000 per bag and we noticed that distributors through the North Eastern part smuggle products to neighbouring countries.

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