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Cement Manufacturers Agree To Slash Prices To ₦7,000, ₦8,000 Per Bag

3 months ago
1 min read

Nigerian Cement Manufacturers have agreed to slash the price to between ₦7,000 and ₦8,000 depending on the location in the country.

The agreement followed hours of meeting between cement producers and representatives of the federal government at the Ministry of Works headquarters in Abuja Monday.

READ ALSO: Real Estate Crisis: How BUA Cement Price Rose 150% In 4 Weeks, Mgt Jerks Up Staff Salary By 50%

The Minister of Works had following the incessant hikes in the cost of cement in recent times, summoned cement producers to ascertain the cause of the price increase.

 

The manufacturers were said to have identified challenges responsible for cement price hike such as high energy and transportation costs, bad roads, smuggling of cement to neighbouring countries, and forex crisis.

READ ALSO: Why Cement Price Keeps Rising – Producers

The agreement to slash cement prices was based contingent upon the government fulfilling its promised interventions to address the challenges affecting the producers.

The meeting was attended by Ministers of Works, David Umahi and his Trade and Investment counterpart, Dr. Doris Uzoka-Anite.

Manufacturers at the meeting were: BuA Cement PLC, Dangote Cement PLC, Larfarge Africa PLC and Cement Producers Association.

 

 

According to a communique read at the end of the meeting by Umahi, the producers expressed willingness to reduce the price of cement going further.

 

According to Umahi, the federal government noted the challenges of the manufacturers and seeks to through the Ministry of Trade and Investment, provide remedies such as reducing the cost of gas and import duties, and also through the Ministry of Works, focus 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,” part of the communique read.

“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.”

It further stated that the federal government has advised cement producers to set up a price monitoring mechanism to ensure compliance, adding that “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, according to the communique will reconvene in 30 days to review progress made.

A 50kg bag of cement which sold at ₦5,000 around December has now jumped to about ₦15,000 per bag.

 


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