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From Isaac Anumihe, Abuja
Cement manufacturers have said that until the cost of gas and the high foreign exchange situation are addressed, the price of their products will not be less than N7,000.
This was disclosed at the meeting between the cement manufacturers, Minister of Works, Engineer Nweze David Umahi and the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite in Abuja.
Other challenges the manufacturers listed include, high import duty on spare parts, bad road network and
smuggling of cement to neighbouring nations
The meeting which was held closed door had in attendance, the representatives of Dangote Cement Plc, BUA Cement Plc, Larfarge Africa Plc and Cement Producers Association.
In his 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. He expressed hope that the meeting would proffer enduring solutions to the increase in cement price.
The government noted that the Federal Ministry of Industry, Trade and Investment would seek some remedies from President Bola Ahmed Tinubu on cost of gas and import duties and that the Federal Ministry of Works would give more attention to fixing of the roads, especially around the locations of the manufacturers.
“On the issue of smuggling cement, the Federal Ministry of Industry, Trade and Investment would deepen the already started engagement with the National Security Adviser (NSA) on how to stop the smuggling”he said
Also in her remarks, Minister of Industry, Trade and Investment, Dr. expressed worry over the price of cement despite her ministry’s regulatory policies and the Backward Integration Programme ( BIP) introduced to manage cement price and development.
According to her, the whole idea of the BIP on the management and development of cement manufacturing industry is not bearing the desired fruit.
Meanwhile, the two ministers advised the cement manufacturers to set up a price monitoring mechanism to ensure compliance and the manufacturers willingly accepted to do so and to sanction any of their distributors or retailers found wanting.
“Government expects the agreed price to drop after securing government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network” the ministers noted.
But the cement manufacturers agreed that ideally, cement retail prices should not cost more than ₦7,000.00 to ₦8,000.00/ 50kg bag of cement depending on the location.
