There was a meeting of Cement Manufacturers which included Dangote Cement Plc, BUA Cement Plc, Larfarge Africa Plc & Cement Producers Association with the Honourable Minister of Industry, Trade & Investment, Dr. Doris Uzoka-Anite and the Honourable Minister of Works, Sen. Engr. Nweze David Umahi, CON held at the Office of the Honourable Minister of Works, Mabushi, Abuja on Monday, 19th February, 2024.
The following challenges of the manufacturers Where discussed
a. Cost of gas;
b. High import duty on spare parts;
c. Bad road network;
d. High foreign exchange; and
e. Smuggling of cement to neighbouring nations.
While reacting the government noted the challenges and promised the following, the Federal Ministry of Industry, Trade and Investment will seek some remedies from Mr. President on cost of gas and import duties.
While Federal Ministry of Works would 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 are to deepen the already started engagement with the National Security Adviser on how to stop the smuggling.
At the meeting both parties agreed 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.
. The Government also expects the agreed price to drop further after securing government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.
Both parties agreed to reconvene in 30 days to review progress made.
