According to official sources, the Federal Government is prioritizing road infrastructure repairs and exploring solutions to address the soaring price of cement, including measures to alleviate gas costs and import tariffs.
This statement forms a crucial part of the consensus reached during a meeting held between government representatives and key cement industry stakeholders in Abuja on Monday.
Signatories to the communiqué include Senator David Umahi, Minister of Works, and Mrs. Doris Uzoka-Anite, Minister of Trade and Investment, along with executives from Dangote Plc, BUA Plc, and Lafarge Plc, the leading cement companies.
As outlined in the document, the government has acknowledged the array of challenges highlighted by the manufacturers, encompassing issues such as the escalating cost of gas, excessive import duties on spare parts, deteriorating road infrastructure, heightened foreign exchange rates, and the illicit smuggling of cement to neighboring countries.
As a result, it was agreed in the meeting that the Federal Ministry of Industry, Trade, and Investment would liaise with President Bola Tinubu to seek redress regarding the cost of gas and import duties.
With a targeted strategy, the Federal Ministry of Works is set to intensify efforts in repairing roads, specifically concentrating on the regions surrounding the manufacturing plants.
Read more: Cement Manufacturers Agree To Bring Down Price Of Product
In light of concerns over cement smuggling, the Federal Ministry of Industry, Trade, and Investment has affirmed its intention to deepen its dialogue with the National Security Adviser, with the aim of implementing effective strategies to counter this illicit activity.
Moreover, it was mutually agreed upon during the meeting that the present inflated price of cement in certain regions nationwide was considered abnormal.
“Ideally, cement retail prices should not cost more than ₦7,000.00 to ₦8,000.00 per 50kg bag of cement.
Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc, and Larfarge Africa Plc, have agreed that the cost of cement should not be more than between ₦7,000.00 and ₦8,000.00 per 50 kg bag, depending on the location.
Furthermore, as part of the government’s directives, manufacturers have been urged to institute a price monitoring framework for enforcement, a directive that manufacturers have voluntarily agreed to uphold, promising to penalize any distributor or retailer caught breaching regulations.
With interventions targeted at resolving manufacturers’ challenges related to gas, import duties, smuggling, and infrastructure, the government anticipates a subsequent decrease in the agreed-upon price.
In addition, there was unanimous agreement on the necessity of integrating at least six new players into the cement manufacturing sector to stimulate market competitiveness and augment product accessibility.
In his statement, Mr. Kabiru Rabiu, the Group Executive Director representing BUA, announced BUA’s intention to release 6 million metric tonnes of cement within the next three weeks, with the goal of increasing nationwide accessibility to the product.
It was mutually decided among the stakeholders to schedule a follow-up meeting in 30 days to evaluate the advancements made.