Cement industry leaders have underscored the impact of gas costs and foreign exchange rates on cement pricing, indicating that prices are unlikely to dip below N7,000 without addressing these challenges.
This revelation emerged during a closed-door meeting in Abuja between cement manufacturers, Minister of Works Engineer Nweze David Umahi, and Minister of Industry, Trade, and Investment Dr. Doris Uzoka-Anite.
Among the hurdles highlighted by manufacturers were steep import duties on spare parts, poor road infrastructure, and cross-border cement smuggling.
The meeting, attended by representatives from Dangote Cement Plc, BUA Cement Plc, Lafarge Africa Plc, and the Cement Producers Association, aimed to address public concerns regarding soaring cement costs in Nigeria.
The government pledged action, with the Federal Ministry of Industry, Trade, and Investment seeking remedies from President Bola Ahmed Tinubu regarding gas costs and import duties. Additionally, the Federal Ministry of Works committed to prioritizing road repairs, particularly around manufacturing sites.
Efforts to combat cement smuggling will intensify, with engagements planned between the Federal Ministry of Industry, Trade, and Investment and the National Security Adviser.
Expressing concern, Dr. Uzoka-Anite noted that despite regulatory policies and the Backward Integration Programme (BIP), cement prices remained high, indicating a need for a reevaluation of current strategies.
Both ministers urged manufacturers to implement a price monitoring mechanism to ensure compliance, with manufacturers agreeing to impose sanctions on non-compliant distributors and retailers.
Government officials anticipate a reduction in prices following interventions addressing gas costs, import duties, smuggling, and infrastructure challenges.
While cement manufacturers acknowledged an ideal retail price range of ₦7,000.00 to ₦8,000.00 per 50kg bag, they stressed the need for comprehensive solutions to sustainably manage pricing dynamics.
