Expert Names Those Behind High Dangote, BUA Cement Prices, Confirms Real Cost of a Bag
- Nigerians looking to build a house in the last few months have had to battle with the high cost of cement prices
- This has forced lawmakers to invite cement manufacturers to provide explanations on the price changes
- Muda Yusuf, the CEO of CPEE, has provided context on the new cement prices and also reacted to the decision by representatives to invite manufacturers
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Muda Yusuf, chief executive officer (CEO) of the Centre For The Promotion Of Private Enterprise (CPPE), has refuted conversations suggesting that cement manufacturers are responsible for the exorbitant prices of cement in the market.
He said this while reacting to the House of Representatives invitation to cement manufacturers, including Dangote Cement and BUA Cement.
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In a statement to Legit.ng, Yusuf noted that the current ex-factory price of cement by the major players is less than N7,000 per bag.
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He added:
"The high cement prices is a regulatory issue that could be addressed within the framework of the Federal Protection and Competition Act of 2018.
"The Federal Competition and Consumer Protection Commission [FCCPC] has a responsibility to ensure compliance with the Act to ensure the protection of the interests of the consumers and the public. If there are proven lapses in this respect, the FCCPC should be held to account."
"The current ex-factory price of cement by the major players is less than N7,000 per bag. It follows that pricing issues and the culprits could also be within the cement distribution chain over which the manufacturers have limited control."
Muda Yusuf makes case for cement manufacturers
Speaking further, Yusuf stressed that lawmakers' invitation and choice of words during a debate at the plenary portrayed cement manufacturers in a bad light.
He added:
"We appeal to the national assembly to always extend due courtesies to investors in the economy in the course of their legislative duties. They deserve to be addressed with respect, courtesy, civility and fairness.
"The logistics cost of cement distribution is humongous, given the escalating cost of diesel and the state of the roads.
"Exchange rate depreciation is taking a huge toll on the cost of imported components of production inputs, including spare parts and machineries.
Cost of fund is mounting as the CBN continues its aggressive monetary policy tightening. Latest headline inflation for February was 31.7%.
"All these are variables which are not within the control of the manufacturers and which have profound impact on production and operating cost."
Dangote, BUA, Lafarge make over N2trn
Earlier, Legit.ng reported that the Nigerian cement makers, including Dangote Cement, recorded a combined revenue increase in 2023.
The increased revenue reflects the rise in construction activities and the increase in cement prices from the previous year.
There is also good news on the customers' side, as traders have decided to reduce cement prices in some northern states.
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Source: Legit.ng
