Following the federal government intervention, Cement manufacturers have agreed to reduce the current price of the commodity to between N7,000 and N8,000 in the country.
This was the outcome of the three-hour meeting between the manufacturers and the minister of works, David Umahi, and the minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite in Abuja.
The manufacturers identified the cost of gas, high import duty on spare parts, bad road network, high foreign exchange rate, and smuggling across borders as factors responsible for the hike.
The communique read by Umahi said: “The cement manufacturers and the government noted that the current high price of cement is abnormal in some locations nationwide.
Naturally, 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 Lafarge Africa Plc – have agreed that cement cost will not be more than between ₦7,000 and ₦8,000 per 50kg bag depending on the location.”
The communique further stated that henceforth, the government advised manufacturers to set up a price follow-up mechanism to ensure adherence.
The manufacturers, according to the communique, have willingly agreed to do so and would sanction any of her distributors or retailers found wanting.
The statement further said the government expects the agreed price to drop after securing the government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.
“The government, as part of the intervention, is also going to encourage at least six other cement-manufacturing companies to spring up.
“The Federal Ministry of Industry, Trade and Investment will approach the President to address the cost of gas and import duties,” part of the communique also read.
The Federal government through the Ministry of Works has also promised to give more attention to fixing the roads, especially around the locations of the manufacturers.
At the occasion, the group managing director/chief executive officer of Dangote Plc, Arvind Pathak, said the manufacturers had agreed to a window of 30 days to address the rising cost in the country.
