Nigeria’s leading cement manufacturers agree on N7, 000 product price

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Major cement manufacturers in Nigeria yesterday agreed to reduce the price of a 50kg bag of the product to between N7, 000 and N8,000.

The deal was sealed after a meeting in Abuja between the managements of Dangote Cement Plc, BUA Cement Plc and Larfarge Africa Plc on the one hand and the federal government represented by the minister of works, Mr David Umahi and the minister of industry, trade and investment, Ms Doris Uzoka-Anite, on the other.

The companies said the price of the product should not be higher than N8, 000 despite the rising cost of doing business in the country.

A communiqué issued at the end of the meeting reads: “The meeting noted the challenges of the manufacturers like: cost of gas;, high import duty on spare parts; bad road network; high foreign exchange; and smuggling of cement to neighbouring nations.

“The government noted the challenges and reacted as follows: federal ministry of industry, trade and investment to seek some remedies from Mr. President on cost of gas and import duties.

“Federal ministry of works to give more attention to fixing of the roads, especially around the locations of the manufacturers.

“On the issue of smuggling cement, the federal ministry of industry, trade and investment to deepen the already started engagement with the national security adviser on how to stop the smuggling.

“The cement manufacturers and the government noted that the current high price of cement is abnormal in some locations nationwide.  Ideally, cement retail prices should not cost more than ₦7,000.00 to ₦8,000.00/ 50kg bag of cement.

“Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc and Larfarge Africa Plc have agreed that cement cost will not be more than between ₦7,000.00 and ₦8,000.00/50kg bag depending on the location.

“Going forward, government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, and manufacturers have willingly accepted to do so and to sanction any of her distributors or retailers found wanting.

“Government expects the agreed price to drop after securing government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.

“The meeting agreed to reconvene in 30 days to review progress made.”