Manufacturers of cement in Nigeria have announced that they can no longer sell a 50kg bag of cement below N7,000 due to the escalating costs of production.
The decision comes after a meeting held yesterday, where representatives from major companies such as Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc, convened with government officials including Minister of Works, David Umahi, and Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, in Abuja.
The manufacturers attributed the price hike to increased operating expenses, including the high cost of gas, import duties, poor road infrastructure, smuggling, and fluctuations in foreign exchange rates. In response to public concerns, they have agreed to adjust the price range per bag from the previous N9,000 to N15,000 to a new range of between N7,000 and N8,000 nationwide.
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Kabir Rabiu, Executive Director of BUA, affirmed the commitment of the manufacturers to adhere to the new pricing agreement, citing significant increases in energy costs as a primary factor. He emphasized that the forthcoming supply of six million tonnes of cement would likely stabilize prices once it enters the market.
Furthermore, the manufacturers and the government have pledged to collaborate on addressing underlying challenges such as smuggling and the need for better infrastructure. They have agreed to establish a price monitoring mechanism to ensure compliance and to reconvene within 30 days to review progress. The government also plans to seek remedies from the President regarding issues such as gas pricing, import duties, and road network improvements.
In her remarks, Minister Uzoka-Anite reassured the public of the government’s commitment to reducing the prices of essential commodities, emphasizing ongoing efforts to mitigate economic challenges.