Good News as Federal Government Plans Alternative to Reduce Cement Prices in Nigeria

In a significant development aimed at alleviating the burden on consumers, the Nigerian government, alongside major cement manufacturers, has taken decisive steps to address the soaring prices of cement across the country. The Minister of Housing and Urban Development, Ahmed Dangiwa, issued a stern warning to industry leaders, including Dangote, BUA, and Lafarge, threatening to permit massive importation if they fail to bring down prices.

Following a crucial meeting between government officials and cement industry representatives, an agreement was reached on Monday, with major players committing to cap the price of a bag of cement between N7,000 and N8,000. This comes in the wake of a sharp increase in cement prices, reaching approximately N13,000 in various parts of Nigeria, exacerbating the current cost-of-living crisis.

Minister Dangiwa expressed his concerns about the rising prices of essential building materials, emphasizing the adverse impact on housing delivery. He reminded manufacturers of the government’s support, which included a halt on cement importation to empower local production and ensure affordability. However, he cautioned that the government might resort to allowing mass importation if prices remain high.

RELATED: Dangote, BUA, Lafarge Cement Update On Price Reduction for Today 21st February 2024

While acknowledging the challenges faced by manufacturers, such as the high cost of gas and manufacturing equipment, Minister Dangiwa insisted that these reasons were insufficient to justify the drastic price surge. He urged manufacturers to influence wholesalers and retailers to adopt fixed prices, expressing dissatisfaction with the Cement Manufacturer Association of Nigeria’s stance on non-interference in pricing.

The minister highlighted the need for the association to play a proactive role in monitoring price control, stating that disparities in pricing among retailers needed to be addressed. In response, the Executive Secretary of CEMAN, Salako James, identified challenges in gas supply and distribution channels, calling for government intervention to stabilize the situation.

As a result of the discussions, the minister directed the formation of a committee to review the situation and propose implementable resolutions beneficial to the average Nigerian. This marks a positive step towards finding a balance between industry interests and consumer affordability.

Source: Premium Times

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