The federal government and major cement manufacturers have agreed to peg the price of 50kg bags of cement between N7,000 and N8,000.
David Umahi, minister of works and housing, disclosed this to journalists on Monday after a prolonged meeting with major cement manufacturers in Abuja.
In a report on February 12, 2024, the Real Estate Developer’s Association of Nigeria (REDAN) said the rising cost of cement would worsen the country’s economy.
REDAN said there is economic hardship in the country and the upward trajectory of cement prices would exacerbate the already difficult situation for Nigerians, particularly those working in the real estate sector.
On February 17, 2024, the minister of works called for a meeting with cement manufacturers over the rising cost of the product.
The price of cement has been swinging between N8,000 and N10,000 per bag from about N4,000 a few weeks ago.
Dangote, BUA, and Lafarge are some of the cement manufacturers summoned by the ministry of works.
However, speaking at the meeting on Monday, the manufacturers said the price drop from the current market price would depend on the fulfilment of certain government interventions to ameliorate critical challenges faced in the industry.
They said the price of cement would depend on the location nationwide.
The meeting was against the backdrop of the astronomical increase in the price of the commodity to about N13,000 in several retail stores in the federal capital territory (FCT), Enugu and other parts of the country.
The meeting, called by President Bola Tinubu, to find a lasting solution to the increase, had Umahi lamenting that the price was abnormal and detrimental to the economic prosperity sought after by the current administration.
On his part, the minister said certain issues, including smuggling, bad roads, high energy costs, and the foreign exchange crisis, caused the high price.
However, he said manufacturers are willing to bring down the prices.
“The cement manufacturers and the government have noted that the present high cost of cement in the market is abnormal in some locations nationwide,” Umahi said.
“Ideally, they noted that cement price and retail price to a consumer should not cost more than between N7,000 and N8,000 per 50 kg bag of cement.
“Therefore, the government and the cement manufacturers, which is Dangote Plc, BUA Plc and Lafarge Plc, have agreed to peg their cement price nationwide between N7,000 and N8,000 per 50 kg bag of cement, depending on the location.
“Which means that this price depends on the location. Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today.”
The meeting also had in attendance, Doris Uzoka-Anite, minister of trade and investment, as well as representatives from the major manufacturers.
