Cement Makers Blame High Operating Costs for Hike in Price

February 20, 2024
Cement Stocks

By Adedapo Adesanya 

Following the meeting between the federal government and cement manufacturers in a bid to stem the hike in price, the manufacturers have agreed to bring down the price of the product to between N7,000 and N8,000 per 50kg depending on the location nationwide.

The cement makers came to the agreement during a meeting with the federal government officials on Monday in Abuja initiated by the Minister of Works, Mr David Umahi, and was attended by his counterpart from the Ministry of Industry, Trade, and Investment, Mrs Doris Uzoka-Anite.

Some of the cement manufacturers present at the crucial meeting included BUA Cement Plc, Lafarge Africa Plc, Dangote Cement Plc, and others.

Recall that Mr Umahi had called the meeting to identify the underlying reasons for the abrupt increase in the prices of cement across the country.

The manufacturers present also expressed their readiness to willingly bring down the prices in future as soon as the federal government intervention is fulfilled.

Speaking at the meeting, a representative of BUA Industries disclosed the firm’s plans to bring in six million tons of cement into the market to mitigate the surging prices.

The federal government has also declared its intention to encourage the introduction of six new manufacturers.

The minister advised cement manufacturers to set up a price monitoring mechanism to ensure compliance.

“The manufacturers have willingly accepted to do so and to sanction any of their distributors or retailers found wanting,” a statement from the ministry said.

The statement added that the meeting noted the challenges of the manufacturers, including the cost of gas, high import duty on spare parts, bad road network, high foreign exchange and smuggling of cement to neighbouring nations.

“The government noted the challenges and reacted that the Federal Ministry of Industry, Trade and Investment will seek some remedies from Mr President on the cost of gas and import duties. The Federal Ministry of Works will give more attention to fixing the roads, especially around the locations of the manufacturers,” it said.

The statement added that on the issue of smuggling cement, the Ministry of Industry, Trade and Investment will deepen the already started engagement with the National Security Adviser (NSA), Mr Nuhu Ribadu, on how to stop the smuggling.

“The government expects the agreed price to drop after securing government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.”

The statement stated that the meeting would reconvene in 30 days to review the progress made.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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