Cement Pricing Accord: Federal Government and Cement Manufacturers Strike Deal
The Federal Government and cement manufacturers have reached an agreement on the pricing of cement, settling on a range of N7,000 to N8,000 per 50 kg bag. This decision aims to curb the sharp increase in cement prices.
The accord was the result of extensive discussions held privately at the Ministry of Works headquarters in Abuja. Manufacturers have tentatively agreed to retail a 50kg bag within the range specified, contingent on location nationwide.
However, they emphasized that the actual price reduction from the current market rates would hinge on the government fulfilling its pledged interventions in critical areas affecting the industry.
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The retail price for cement recently surged from N5,000 to N10,000 within a week in the open market, prompted by wholesalers adjusting prices due to increased transportation costs and other variables. Retailers subsequently passed on the additional cost to consumers to maintain viability.
President Bola Tinubu directed Ministers of Works, David Umahi, and Trade and Investment counterpart, Dr. Doris Uzoka-Anite, to engage with cement manufacturers and find a resolution to the crisis. Umahi, expressing the Federal Government’s concern, highlighted the potential impact on the administration’s prosperity agenda if the situation persisted.
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Following the meeting, Umahi presented a communique addressing concerns raised by manufacturers, including issues like bad roads, smuggling, high energy costs, and the Forex crisis, identified as primary reasons for the price hike.
The manufacturers, including Dangote Cement PLC, BuA Cement PLC, Larfarge Africa PLC, and Cement Producers Association, expressed willingness to reduce prices in the future.
Representatives of the federal government, including the Minister of Works and the Minister of Industry, Trade, and Investment, acknowledged the challenges faced by manufacturers.
The communique outlined government actions, such as seeking remedies from the President on the cost of gas and import duties through the Federal Ministry of Industry, Trade, and Investment.
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