“Give us 30 Days”: Cement Producers Give Conditions for Crashing Price as FG Summons Dangote, Others
- Cement producers in Nigeria have given the federal government a condition to crash the price of the product
- The national chairman of the Cement Producers’ Association of Nigeria, David Iweta, said the crisis was caused by demand outweighing supply
- He asked the Nigerian government to revisit late President Umar Yar’Adua’s policy, which granted licenses to cement importers
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The national chairman of the Cement Producers’ Association of Nigeria (CEPAN), David Iweta, has said the association is ready to help the Nigerian government to crash cement prices within 30 days if taken along as part of efforts to find a solution.
Iweta attributed the continued increase in the product's price to the challenge of demand outweighing supply in the sector.
Source: UGC
Cement producers explain the reason
He said the supply chain is affected mainly by the foreign exchange crisis in the country.
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According to him, the association had foreseen the development. It warned the Nigerian government of the implications and the likely consequences of giving the responsibility of producing the product to a few individuals.
He said:
“What we are seeing today is a case of demand 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.
Per the CEPAN boos, the association had warned when the product was selling for N3,000 per bag that if specific steps were not taken, it would sell for as high as N9,000 per bag.
Revisit Yar'Adua's cement policy, CEPAN tell FG
The Nigerian Tribune reported that the CEPAN boss asked the Nigerian government to revisit late President Umar Yar’Adua’s Integration Policy, which licensed some players in the industry to import the commodity but was sabotaged by a few people.
He stated that the policy was meant to bridge the supply gap in the sector then.
He said:
“The way out immediately for the federal government is to revisit that policy. Otherwise, the price will keep rising since it is obvious that these few players cannot cope with the demands of Nigerians.”
Iweta said the association seeks an audience with the Minister of Industry, Trade and Investment to proffer lasting solutions to the challenges.
Legit.ng reported that the product's price hit about N9,500 per bag and later climbed above N15,000, depending on the brand.
FG summons BUA, Dangote, and others
Earlier, Legit.ng reported that the minister of Works, David Umahi, summoned cement manufacturers to a meeting on Monday, February 19, to examine the issues surrounding the alarming increase in cement prices.
Dangote Plc, BUA Plc, Lafarge, and the other manufacturers are expected at the meeting as cement now ranges between N6,500 and N15,000 per bag.
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Source: Legit.ng
