Cement Producers Association Calls for an End to Monopoly in Cement Industry
The Cement Producers Association of Nigeria (CEPAN) has addressed a letter to President Bola Tinubu, urging an end to the monopoly in cement production and distribution.
The association also advocated for the inclusion of companies with verifiable local investments in cement within the participation scope.
In the letter, signed by its National Chairman, David Iweta, and co-signed by the National Secretary, Reagan Ufomba, CEPAN highlighted that Nigeria continues to have one of the highest price tags on cement, primarily due to the industry’s inability to meet the demands for the commodity.
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The letter emphasized, “Cement being the major requirement to bridge the infrastructure gap, housing deficit, revenue earner, amongst other construction activities in the country must meet demand at a reasonable pricing as in most parts of the world.”
CEPAN pointed out that the profit margin of over 300 per cent held by the three major cement plant owners in the country reflects a significant disparity and raises concerns about fair pricing for consumers.
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In comparison, larger cement plants in developed economies like Switzerland, China, Mexico, Taiwan, and India typically maintain profit margins between 13 per cent and 17 per cent.
The association called for a revisit of the backward integration policy established during the late President Umar Yar’Adua’s tenure, which aimed to enable the sector to meet the anticipated demands for cement in Nigeria.
Furthermore, CEPAN urged the government, in collaboration with the Ministry of Industry, Trade and Investment, and the Ministry of Finance, to dismantle the existing monopoly and create a more inclusive framework for participation, particularly for entities with verifiable local investment in cement and related industries.
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Additionally, CEPAN requested a thorough investigation into the utilization of the N13.2 billion Cement Technology Fund, which was initiated under Yar’Adua’s government.
The fund, currently held by the Bank of Industry, was intended to support infrastructure development, reduce cement prices, and ensure price stability nationwide.
