Economic Hardship: FG, Manufacturers Agree To Drop Cement Price To N7000


Feb 20, 2024

Cement manufacturers have agreed to bring down the price of the product to between N7,000 and N8,000 per 50kg depending on the location nationwide.
ADULAWO News reports that the manufacturers came to the agreement during a meeting with the Federal government officials on Monday in Abuja.

The meeting which was initiated by the Minister of Works, David Umahi, was attended by his counterpart from the Ministry of Industry, Trade, and Investment, Doris Uzoka-Anite.

ADULAWO News recall that Umahi had called the meeting to identify the underlying reasons for the abrupt increase in the prices of cement across the country.
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The manufacturers present also expressed their readiness to willingly bring down the prices in future as soon as the federal government intervention is fulfilled.

Speaking at the meeting, a representative of BUA Industries disclosed the firm’s plans to bring sx million tons of cement into the market to mitigate the surging prices.

The federal government has also declared its intention to encourage the introduction of six new manufacturers.

Some of the cement manufacturers present at the crucial meeting include BUA Plc, Lafarge, Dangote Plc, and others.

A statement by the Special Assistant to the Minister of Works on Media, Orji Uchenna Orji, advised cement manufacturers to set up a price monitoring mechanism to ensure compliance.

“The manufacturers have willingly accepted to do so and to sanction any of their distributors or retailers found wanting,” he said.

The statement added that the meeting noted the challenges of the manufacturers include cost of gas, high import duty on spare parts, bad road network, high foreign exchange and smuggling of cement to neighbouring nations.
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“The government noted the challenges and reacted that the Federal Ministry of Industry, Trade and Investment will seek some remedies from Mr. President on the cost of gas and import duties. The Federal Ministry of Works will give more attention to fixing of the roads, especially around the locations of the manufacturers,” it said.

The statement added that on the issue of smuggling cement, the Ministry of Industry, Trade and Investment will deepen the already started engagement with the National Security Adviser on how to stop the smuggling.

It added: “The 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 statement stated that the meeting would reconvene in 30 days to review the progress made.

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