Block Moulders Gives FG Suggestion on How To Slash Cement Prices

• The price of a bag of cement is a real concern for block moulders in Nigeria, and there is a call for help.
• The block moulders believe that the high cement prices could lead to unsafe construction practices and building collapses.
• There are three top cement manufacturing companies in the country Dangote, BUA, and Lafarge

The National Association of Block Moulders of Nigeria (NABMON) has urged the Federal Government to promote local cement production to increase competition.

The association believes that competition will help stabilise cement prices in the construction sector.

Adesegun Banjoko the National President of NABMON, made this appeal in a New Year message delivered in Lagos on Wednesday, January 1.

He noted that the crippling impact of high cement prices on the industry and broader construction affordability, the Guardian reports.

Banjoko said:

“The new wage regime has triggered unprecedented increases in the prices of commodities and utility items. Cement, a key raw material for block moulding, has not been spared, with its current price of N10,000 per bag causing significant strain on the construction sector."

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He warned that the high cost of cement could lead to unsafe compromises in construction quality, increasing the risk of building collapses.

He said:

“To procure 100 bags of cement at current prices, one needs a million Naira. This dire situation underscores the urgent need for government intervention to encourage more manufacturers into the sector.

Banjoko stressed that the current supply from the country’s three cement manufacturers falls short of meeting demand from private and public construction projects, NAN reports.

How govt can help slash cement prices

To alleviate the crisis, the NABMON president proposed allowing short-term cement imports to stabilise prices while the domestic industry scales up production.

Banjoko added:

“Apart from fostering competition in the cement manufacturing sector, permitting short-term importation of quality cement would help balance demand and supply, leading to more favourable pricing and sales conditions."

Banjoko expressed optimism about potential benefits from recent government initiatives, such as fiscal federalism and tax reforms, which he believes could foster growth in the sector.

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He also underscored the importance of compliance with building block standards set by the Standards Organisation of Nigeria (SON), reiterating NABMON’s readiness to collaborate with the government to provide industry data for effective planning.

The NABMON president concluded his message by wishing Nigerians a prosperous New Year and emphasizing the need for responsible citizenship to drive national development.

Reps new directives to Dangote, others

Ealier, Legit.ng reported that the House of Representatives Joint Committee has issued a directive to manufacturers, including Dangote Cement, BUA Cement, and Lafarge Africa.

Jonathan Gaza, the committee's chairman, stated that manufacturers must present a detailed breakdown of production costs to justify the recent increase in cement prices.

The lawmakers observed that while cement prices are notably high in the North and several other states.

Source: Legit.ng