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Cement manufacturers in Nigeria have agreed to reduce the price of cement to a range between N7,000 and N8,000 per bag after a three-hour meeting with a federal government team.
The government delegation, led by the Minister of Works, Engr. David Umahi, and the Minister of Industry, Trade, and Investment, Dr. Doris Uzoka-Anite, met with the manufacturers to address the soaring prices of cement.
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During the meeting, the manufacturers cited factors such as the cost of gas, high import duty on spare parts, poor road networks, high foreign exchange rates, and smuggling of cement across borders as reasons for the price hike.
In a communique read by the Minister of Works, it was noted that the current high price of cement is abnormal in some locations nationwide, and ideally, retail prices should not exceed ₦7,000 to ₦8,000 per 50kg bag.
Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc, the three major cement manufacturers, agreed to adhere to the suggested price range. The government expects the agreed price to drop further after addressing the manufacturers’ challenges related to gas, import duty, smuggling, and improving road networks.
To monitor compliance, the government advised cement manufacturers to establish a price monitoring mechanism and to sanction any distributors or retailers found violating the agreed-upon price.
The meeting concluded with plans to reconvene in 30 days to review the progress made. Additionally, the federal government expressed its intention to encourage the establishment of six new cement manufacturing companies.
The Ministry of Industry, Trade, and Investment will address issues related to the cost of gas and import duties, while the Ministry of Works will focus on improving road infrastructure. Efforts to curb cross-border smuggling of cement will be intensified through engagement with the National Security Adviser.
Representatives of the major cement manufacturers emphasized their commitment to addressing the crisis, with a 30-day window provided for necessary adjustments. BUA, one of the manufacturers, pledged to bring in an additional six million tonnes of cement in the coming weeks to alleviate supply pressures.
