Victor EzejaThe Cement Producers’ Association of Nigeria (CEPAN) has blamed the incessant hike in the price of cement across the country on high demand for the product that far outweighs supply.
CEPAN national chairman, Prince David Iweta, who spoke to Nigerian Tribune said the producers are ready to assist the federal government in resolving the challenges that led to high cost of the product and bringing down the price across the country within 30 days.
Iweta said countered the claims that the high price of cement was due to the current high foreign exchange rates in the country.
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He recalled that the association had earlier when it foresaw the development, warned that if necessary measures were not taken, the price might jump. According to him, it is problematic for a few privileged manufacturers to be saddled with the responsibility of producing cement that meets the needs of over 200 million people.
“What we are seeing today is a case of demand clearly outweighing supply and we in the association knew it would come to this because there is no way the few players in the industry can meet the cement needs of Nigerians.
“If you remember, the association had earlier warned, even when the commodity was still as low as N3,000 that in the nearest future, it would sell for as high as N9,000 if certain steps were not taken. Why we were saying that then was to ginger the government to take action and avert this mess that we are all in today,” Iweta said.
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Worried by the unprecedented hike in the cost of cement, the federal government through the Minister of Works, scheduled a meeting with cement producers in Abuja today, to look into the factors pushing up the price.
The price of a 50kg bag of cement which sold for N5,500 in December 2023 has jumped to about N15,000 per a bag as of 18 February 2024.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
