A crucial meeting convened by the Minister of Works, Dave Umahi, on Tuesday addressed the cement price hike, which has seen a significant increase in recent weeks.
The meeting was prompted by concerns over the manufacturers’ decision to double the price of cement from approximately N5000 to N10,000 per bag within a span of two weeks.
During a previous meeting with the Minister of Works on Monday, the manufacturers had defended their price increase, citing various challenges including the state of roads across the country, the rising cost of gas, and the devaluation of the naira against the dollar. They proposed reducing the price to N7000 if the government addressed these issues.
However, the Minister of Works, while addressing the manufacturers during Tuesday’s meeting, expressed dissatisfaction with their justification for the price hike.
He urged the manufacturers to demonstrate greater patriotism, emphasizing that raw materials for cement production, such as limestone, clay, silica sand, and gypsum, are sourced locally and should not be dollar-rated.
The Minister dismissed the manufacturers’ claims regarding the cost of gas and importation of mining equipment, attributing the price hike to the failure of the Cement Manufacturers of Nigeria to regulate the price of their product.
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He criticized the manufacturers for exploiting the situation and failing to consider the government’s efforts to support local production.
In response to the Minister’s remarks, the Executive Secretary of the Association, Salako James, clarified that the association does not determine the price of individual companies but merely observes market prices.
The Minister announced plans to establish a committee comprising representatives from each cement manufacturer, the association, and the government. This committee will be tasked with devising solutions to address the high price of cement in the country.
Rabiu Umar, the Group Chief Commercial Officer of Dangote Cement, reiterated the challenges faced by cement manufacturers, including the high cost of gas and mining equipment, which are largely dependent on foreign exchange rates. He also highlighted the impact of currency devaluation on cement exports and increased demand from neighboring countries.
Overall, the meeting underscored the need for collaboration between the government and cement manufacturers to find sustainable solutions to the challenges affecting the cement industry and mitigate the impact on consumers.
