Nigerian cement manufacturers set maximum retail price of N8,000 amidst price surge
By Charity Nginyu
In response to mounting concerns over escalating cement prices, major cement manufacturers in Nigeria have taken decisive action by agreeing to set the maximum retail price of a 50kg bag of cement at N8.000.
Dangote, BUA, and Lafarge, alongside the Cement Producers Association, reached this consensus following a high-level meeting with government officials.
The meeting, attended by the Minister of Works, David Umahi, and the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, was convened to address the escalating concerns over the steep rise in cement prices.
Reports had indicated that prices had skyrocketed to as high as N13,000 in some retail outlets in the capital city, Abuja.
During the discussions, Minister Umahi underscored the significance of utilizing local resources for infrastructure development, particularly in road construction. He emphasized, “The essence of this meeting is the concern of the public and also the fact that this ministry since August has been preaching on how we can utilize our local contents in the construction of our roads.”
Acknowledging the abnormal price levels in certain regions, the cement manufacturers, in collaboration with the government, recognized that cement retail prices should ideally range between N7,000.00 to N8,000.00 per 50kg bag.
A communique issued after the meeting highlighted the commitment of the manufacturers to adhere to the said pricing guidelines.
Furthermore, the government has urged cement manufacturers to establish an effective price monitoring mechanism to ensure adherence to the above-mentioned prices.
Efforts are also underway to address the underlying challenges faced by manufacturers, including issues related to gas supply, import duties, smuggling, and infrastructure.
“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 communique stated.
This collaborative effort between government authorities and industry stakeholders is perceived as a significant step towards mitigating the impact of rising construction costs in Nigeria.
