Federal Government and Cement Manufacturers Reach Agreement to Address High Cement Prices

The Federal Government has pledged to focus on improving road infrastructure and exploring solutions to mitigate the high cost of gas and import duties, aiming to reduce the soaring price of cement across Nigeria. This commitment emerged from a meeting between government officials and major cement manufacturers held in Abuja on Monday.

Sen. David Umahi, Minister of Works, and Mrs. Doris Uzoka-Anite, Minister of Trade and Investment, along with representatives from Dangote Plc, BUA Plc, and Lafarge Plc, signed a communiqué outlining the agreed-upon measures.

The communiqué highlighted various challenges identified by the manufacturers, including the cost of gas, high import duties on spare parts, inadequate road networks, foreign exchange fluctuations, and cement smuggling to neighboring countries.

To address these issues, the Federal Ministry of Industry, Trade, and Investment will seek remedies from President Bola Tinubu regarding the cost of gas and import duties. The Ministry of Works will prioritize road repairs, particularly in areas where cement manufacturers are located.

In response to concerns about cement smuggling, the Ministry of Industry, Trade, and Investment will collaborate with the National Security Adviser to curb the illicit practice.

The meeting emphasized that the current high price of cement is abnormal in certain locations nationwide and set a target price range of ₦7,000.00 to ₦8,000.00 per 50kg bag, depending on the location. Cement manufacturers agreed to establish a price monitoring mechanism to ensure compliance and impose sanctions on erring distributors or retailers.

Furthermore, the stakeholders discussed the need to introduce at least six additional players into the cement manufacturing sector to enhance competition and increase product availability.

BUA Cement Plc announced plans to release 6 million metric tonnes of cement within the next three weeks to improve product availability across the country.

The parties agreed to reconvene in 30 days to assess the progress made in implementing these measures.