FG, Cement Manufacturers Agree On Conditions To Slash Current Price

FG, Cement Manufacturers Agree On Conditions To Slash Current Price

The Federal Government and cement manufacturers agreed to some conditions to slash the current market price of the commodity.

Manufacturers have agreed to sell a 50kg bag of cement at a retail price between N7,000 and N8,000, depending on location nationwide.

The manufacturers stated that the slash in cement price from the current market price of N13,000 would depend on the fulfilment of certain government interventions to ameliorate critical challenges faced in the industry.

They stated this on Monday during a meeting with the Minister of Works, Dave Umahi, and the Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, at the Ministry of Works headquarters on Monday in Abuja.

Some of the challenges stated by the manufacturers include the high cost of gas, high import duties from their spare parts, bad road network, smuggling, and the high Foreign Exchange (FX) rate.

Reading the communique after a three-hour discussion, Umahi lamented the current cement price, stating that it was abnormal and detrimental to the economic prosperity sought after by the current administration.

The minister said the government would address some of the issues that caused the high prices but stressed that manufacturers have expressed their willingness to bring down the prices in the future.

He said, “The meeting discussed extensively the current prices of cement vis a vis the challenges from the manufacturers. They talked about their challenges, ranging from the high cost of gas, high import duties from their spare parts, bad road network and, of course, the high FX rate.

“They also talked about the issue of cement across our borders and how it is creating scarcity and high increase. We agreed that the trade ministry will seek some remedies from the president on the high cost of gas and the issue of import duties and fixing of the roads within the distribution corridors.

“The cement manufacturer has noted and the government that the present high cost of cement in the market is very much abnormal in some locations nationwide. Ideally, they noted that cement price, and retail price to a consumer should not cost more than between N7,000 to N8,000 per 50 kg bag of cement.

“Therefore, the government and the cement manufacturers, which are Dangote Plc, BUA Plc and Lafarge Plc have agreed to have their cement price nationwide between N7,000 to N8,000 naira per 50 kg pack of cement, depending on the locations, which means that this price depends on the locations. Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today and manufacturers have willingly accepted to do that and sanction any of their distributors or retailers found wanting.

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