FG steps in to reduce cement price to N7000

The Federal Government and cement manufacturers have agreed to bring the prices of the commodity down to N7000 per bag.

WESTERN POST reports that the government’s intervention was at a crucial meeting between the Minister of Works, Engr. David Umahi, his counterpart in the Ministry of Industry, Trade and Investment, Dr. Doris Uzoka-Anite and manufacturers.

The government reportedly took the step to address the challenges that led to the recent increase in the cost of cement across the country.

The meeting deliberated on the challenges confronting cement manufacturers in Nigeria. These include the high cost of gas, high import duty on spare parts, poor road networks, exorbitant foreign exchange rates and cement smuggling to neighbouring countries.

According to the manufacturers, these challenges are responsible for the recent price increases.

Therefore, the Federal Ministry of Works agreed to prioritize the rehabilitation of roads around cement manufacturing sites to facilitate smooth operations and ease the transportation of raw materials and finished goods from the factories.

In addition, the ministry will also liaise with the Office of the National Security Adviser to address the problem of smuggling of cement across the border to neighbouring countries. According to the Minister of Works, Engr. Umahi: “Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices set today, and manufacturers have willingly accepted to do that and sanction any of their distributors or retailers found wanting.”

On the high cost of gas and import duties, the Federal Ministry of Industry, Trade, and Investment is to seek the intervention of President Bola Ahmed Tinubu and provide available remedies to address the issues.

The Federal Government and the cement manufacturers are optimistic that taking these steps will bring down cement prices to give succour to Nigerians. The stakeholders are to reconvene for another meeting in 30 days to review the progress made.

Present at the meeting were representatives from Dangote Cement Plc, BUA Cement Plc, Lafarge Africa Plc, and other members of the Cement Manufacturers Association.