Major Cement manufacturers in Nigeria have agreed with the government to set the price of a 50kg bag of cement within the range of 7,000 to 8,000 Naira.
Cement manufacturers have also agreed to set up a price monitoring mechanism and sanction retailers who default on the agreed price.
These were some of the resolutions reached at a meeting between the Minister or Works, Senator David Umahi, representatives of Dangote Cement Plc, BUA Cement Plc and Larfarge Africa Plc in Abuja Nigeria’s capital.
The meeting aimed at reviewing the escalating price of cement which has been affecting the cost of construction in the nation.
In a communique released after the meeting, the Manufacturers mentioned various factors that has affected production of cement resulting in the rising cost which includes the following; “Cost of gas, High import duty on spare parts, Bad Road network, High foreign exchange and Smuggling of cement to neighbouring nations.”
The government resolved to take the following actions to remedy the situation.
“Federal Ministry of Industry, Trade and Investment to seek some remedies from Mr. President on cost of gas and import duties.
“Federal Ministry of Works to 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 to deepen the already started engagement with the National Security Adviser on how to stop the smuggling.
“The cement manufacturers and the Government noted that the current high price of cement is abnormal in some locations nationwide. Ideally, cement retail prices should not cost more than ₦7,000.00 to ₦8,000.00/ 50kg bag of cement. Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc and Larfarge Africa Plc have agreed that cement cost will not be more than between ₦7,000.00 and ₦8,000.00/50kg bag depending on the location,” the communique reads.
The Government expressed hope that the price will drop after resolving the challenges such as gas, import duty, smuggling and better road network that the manufacturers are facing.
The meeting agreed to reconvene in 30 days to review progress made.
Comments are closed.