*Six More Players To Be Accommodated
THE Federal Government and major cement manufacturers have pegged the price of 50kg bag of cement at between N7,000 and N8,000, depending on the location.
However, the manufacturers said the price reduction would depend on the fulfillment of certain government intervention to ameliorate critical challenges faced in the industry.
Minister of Works, Senator David Umahi, disclosed this after a meeting with major cement manufacturers in the country on Monday, February 19, in Abuja, against the backdrop of the increase in the price of the product to about N13,000 in several retail stores across the country.
At the meeting held at the instance of President Bola Tinubu to find a lasting solution to the increase, Umahi lamenting the abnormal cost, which he stressed was detrimental to economic prosperity plan of the current administration.
He attributed the sudden rise in the price of cement to certain issues, including smuggling, bad roads, high energy costs and the foreign exchange crisis, but noted that manufacturers have expressed readiness to bring down the prices.
“The cement manufacturers and the government have noted that the present high cost of cement in the market is abnormal in some locations nationwide.
“Ideally, they noted that cement price and retail price to a consumer should not cost more than between N7,000 and N8,000 per 50 kg bag.
“Therefore, government and the cement manufacturers, which is Dangote Plc, BUA Plc and Lafarge Plc, have agreed to peg the cement price nationwide between N7,000 and N8,000 per 50 kg bag, depending on the location, which means that this price depends on the location.
“Going forward, government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today,” Umahi stated.
Government expects the agreed price to drop after securing its interventions on the challenges of the manufacturers on gas, import duty, smuggling and better road network.
Furthermore, they agreed that at least six more players have to be introduced into the cement manufacturing sector to make the market more competitive and product more available.
The BUA representative and its Group Executive Director, Mr. Kabiru Rabiu, said BUA was preparing to release six million tonnes of cement within the next three weeks to make the product more available nationwide.
The stakeholders agreed to reconvene in 30 days to review progress made.
The meeting was also attended by the Minister of Trade and Investment, Mrs. Doris Uzoka-Anite, representatives of Dangote, BUA and Lafarge.
