From N5k to N9k: Producers Warn Nigerians of Looming Cement Price Hike as FG Plans Concrete Roads
- Cement producers said the price of cement could increase to N9,000 with the government's proposed concrete road plan
- The group said there would be serious implications if the supply end were not adequately addressed
- The group also called on government to outline the criteria for road design in a way that allows both cement technology and asphalt pavement to run concurrently
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The Cement Producers Association of Nigeria has warned that the federal government's continued ambition to build concrete roads will increase the cost of cement from its present N5,000 per bag price to N9,000.
The association also urged the current administration to encourage greater participation in the cement industry to address the issue of ongoing cement price increase permanently.
In a report by Punch, the group said Nigerians should not buy cement price for more than N5,600 a bag.
The price of cement has been a heated issue in the country in the past few days.
Dangote Group, the parent company of Dangote Cement, earlier denied reports that it plans to reduce cement prices by 50.9% on October 1, 2023.
The company also addressed claims that the company sells cement at a cheaper rate in other countries compared to Nigeria.
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Source: UGC
Producers urge government to review planned road design
In a statement co-signed by its national chairman, Prince David Iweta, and national secretary, Chief Reagan Ufomba, the group commended the works minister's stance on cement-made roads.
It, however, warned of profound implications if the supply end was inadequately addressed.
The statement reads:
“Our findings from various parts of the country show that cement sells for as high as N6000 per bag in the rainy season.
We predict that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr. President if the government does not take proactive steps.
As a solution, the cement producers urged the government to emphasise the design of roads so that cement technology and asphalt pavement could be used simultaneously.
This, it said, will provide ample time for a smooth transition that allows contractors to invest in commensurate and requisite equipment and retooling.
Producers want the government to implement backward integration
Cement manufacturers earlier asked the government to continue with the backward integration policy of the late Umaru Musa Yar'Adua administration.
In response to recent comments on cement prices, it noted that the country needs readily available and reasonably priced cement.
The producers claim Nigerians are fed up with rising cement price and eagerly await a drop in price.
The group called on the President Bola Tinubu administration to increase sector engagement with firms with verifiable proof of local investment such as greenfield licenses and quarrying to permanently resolve this problem of cement price increases.
BUA Chairman Abdul Samad Rabiu announces plan to drop cement price in Nigeria
Legit.ng reported plans by Abdulsamad Rabiu, the chairman of BUA Cement Plc, to reduce cement prices after completion of the company's two new factories by the end of the year.
Rabiu disclosed this at a briefing held alongside the company's seventh annual general meeting on Thursday, August 31, 2023, in Abuja.
Source: Legit.ng
