By Mohammed Bello Doka
In a concerted effort to address the escalating cost of cement in Nigeria, the Federal Government recently convened a pivotal meeting with key stakeholders in the cement manufacturing sector. The gathering, held at the office of the Honourable Minister of Works in Mabushi, Abuja, brought together a diverse array of participants, including the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, and the Honourable Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, alongside representatives from leading cement companies and the Cement Producers Association.
Amidst the backdrop of mounting concerns from Nigerians regarding the surge in cement prices, the closed-door session provided a platform for stakeholders to delve into the root causes of the issue. Discussions centered on the stark disparities between ex-factory prices and retail rates, which have placed undue strain on consumers and the construction industry alike. Recognizing the urgency of the matter, the Honourable Minister of Works underscored the government's commitment to finding sustainable solutions to mitigate the persistent rise in cement prices, echoing sentiments of economic stability and consumer welfare.
In her address, the Honourable Minister of Industry, Trade and Investment lamented the challenges faced by the cement manufacturing sector, despite regulatory policies and the implementation of the Backward Integration Programme (BIP). The failure of these measures to yield desired results underscored the need for a collaborative approach to address underlying issues and restore equilibrium to the market.
Following exhaustive deliberations, a comprehensive communique was issued outlining strategic interventions aimed at alleviating the burden of high cement prices on consumers and the construction sector. Key among these initiatives was the agreement by major cement manufacturers - including industry giants Dangote Cement Plc, BUA Cement Plc, and Larfarge Africa Plc - to cap the retail price of cement within a range of ₦7,000 to ₦8,000 per 50kg bag, with variations depending on geographical location. This landmark decision was hailed as a significant step towards ensuring affordability and accessibility of cement for all Nigerians.
Furthermore, the government pledged to address systemic challenges facing cement manufacturers, ranging from the high cost of gas and import duties to inadequate infrastructure and rampant smuggling. Concrete action plans were outlined, including lobbying for remedies from the President, prioritizing infrastructure development in areas with manufacturing facilities, and intensifying efforts to combat cross-border smuggling of cement.
In a demonstration of mutual accountability, cement manufacturers committed to implementing a robust price monitoring mechanism to enforce compliance with the agreed-upon pricing framework. Additionally, measures were put in place to sanction any distributors or retailers found engaging in price gouging or circumventing regulations, ensuring accountability across the supply chain.
Looking ahead, both government and industry stakeholders resolved to reconvene in 30 days to assess progress and chart a course for sustained collaboration. The proactive engagement between the Federal Government and cement manufacturers signifies a renewed commitment to addressing economic challenges and fostering growth in the critical cement sector.
As the nation eagerly anticipates tangible outcomes from these deliberations, stakeholders remain hopeful that concerted efforts will lead to tangible improvements in cement affordability and availability, ultimately benefiting Nigerian consumers and driving economic development across the nation.
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