The Federal Government has met with cement manufacturers and agreed on the modalities to tackle the escalating price of cement in Nigeria.
The meeting which was held closed door at the office of the Minister of Works, Sen. Engr David Umahi in Abuja on Monday, had in attendance the Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite.
Also, the cement manufacturers and cement Producers Association, the representatives of Dangote Cement Plc, BUA Cement Plc, Larfage Africa Plc.
In his remarks, the Minister of Works said the meeting was aimed at addressing concerns of Nigerians on escalating cost of cement in Nigeria marked by the disparities between the ex-factory price and the market price of cement.
Umahi expressed hope that the meeting would profer enduring solutions to the unabating increase in cement price.
Industry, Trade and Investment Minister, Dr Uzoka-Anite said it was worrisome that the price of cement was surging despite her Ministry’s regulatory policies and Backward Integration Programme ( BIP) introduced to manage cement price and development.
The Minister expressed surprise that the whole idea of the BIP on the management and development of cement manufacturing industry is not bearing the desired fruit.
According to the statement signed by Umahi’s aide, a communique was issued after the meeting and was read by the Minister of Works as contained in the appendix hereunder.
The two Ministers also used the opportunity to re-assure Nigerians that the Renewed Hope Administration of President Ahmed Bola Tinubu, is committed to addressing the economic challenges facing the country
“And shall leave no stone unturned in addressing this escalating prices of commodities, including the price of cement in Nigeria”, they both give the assurance.
Confirming the communique as the true reflection of their deliberations, the Cement manufacturer spokespersons and Cement Producers Association thanked the two Ministers for their sense of devotion to the national development
They also expressed their confidence in the timely intervention of the Federal Govt to the challenges facing cement manufacturing in Nigeria.
The spokesperson of Dangote Cement Plc and GMD/CEO, Mr Arvind Pathak added, “the honorable Ministers gave us a kind hearing, and we have agreed for a window of 30 days in which we re-assemble and see how best we can move on that.”
Also, the spokesperson of BUA Cement Plc and Group Executive Director, Mr. Kabiru Rabiu said, “And another thing that I need to add is that BUA is committed to bringing an additional 6 million tons of cement in the next few weeks, which will seriously dampen the pressure of supply in the market and we will continue to commit to this engagement”.
The spokesperson to Lafarge Africa Plc and Commercial Director, Mr. Gbenga Onimowo said, “it was very timely, honestly, listening towards the challenges that we all face as manufacturers.
Adding that, “I think we appreciate that and we do look forward to the solutions coming, the support they’re going to give within the next coming days”.
The President of Cement Producers Association, Prince David Aweta, in his reaction said, “I am actually here to advocate for the six other players to join in the industry because practically, we can feel that operator in the cement industry at the moment are so few and that is why we are having this perennial problem of cement hikes particularly during dry seasons.”
The details of the Communique below:
1. The meeting noted the challenges of the manufacturers like: a. Cost of gas; b. High import duty on spare parts; c. Bad road network; d. High foreign exchange; and e. Smuggling of cement to neighbouring nations.
2. The government noted the challenges and reacted as follows: a. Federal Ministry of Industry, Trade and Investment to seek some remedies from Mr. President on cost of gas and import duties.
b. Federal Ministry of Works to give more attention to fixing of the roads, especially around the locations of the manufacturers.
c. 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.
3. 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.
4. Going forward, Government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, and manufacturers have willingly accepted to do so and to sanction any of her distributors or retailers found wanting.
5. 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.
6. The meeting agreed to reconvene in 30 days to review progress made.