Cement Price Crisis: We begin importation – FG

The federal government has warned that it may allow cement imports if Nigerian cement producers don’t agree to lower cement prices in the country.

The government has pointed out that despite economic challenges, many materials needed to make cement, like limestone and clay, are found in Nigeria. Therefore, it sees the big price hikes in cement as unfair and unjust.

Housing and Urban Development Minister, Arc Ahmed Dangiwa, stated that materials for making cement, such as limestone and clay, are found locally and shouldn’t be priced in dollars.

Dangiwa shared these views in Abuja during an urgent meeting with cement and building materials producers on Tuesday, February 20.

He argued that the high price of gas, used by manufacturers as a reason for high cement prices, shouldn’t be an excuse since gas is also found in Nigeria. He also dismissed claims about the high cost of mining equipment, noting that such equipment has been in use for many years.

The minister reminded that the border was closed to cement imports to support local manufacturers. However, if the government decides to reopen it, cement prices could drop significantly, affecting local businesses.

Dangiwa encouraged manufacturers to show more patriotism. He praised BUA cement for their willingness to reduce their prices below the N7000, N8000 mark set by manufacturers and questioned why others couldn’t do the same.

Addressing the manufacturers’ concerns, the minister said: “Many countries face similar or even worse challenges, but as patriots, we must come together in times of crisis to make a difference. We produce gas here, so while there may be shortages, it shouldn’t be a major excuse. Regarding mining equipment, its cost shouldn’t be a frequent excuse for high prices since this equipment lasts for years.”

Rabiu Umar of Dangote Cement cited high gas costs and mining equipment as reasons for the high cement prices. He explained that gas, which is crucial for cement production, is priced in dollars and makes up about half the production cost.

Umar also mentioned that the devaluation of the naira has encouraged illegal cement exports, reducing local supply and pushing up prices.

The minister criticized the Cement Manufacturers of Nigeria for not controlling cement prices, following a statement from the association’s Executive Secretary, Salako James, that they don’t set prices but only learn of them from the market.

Dangiwa announced the creation of a committee, including representatives from each cement manufacturer, their association, and the government, to find solutions to the high cement prices.

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