In response to the escalating costs of cement in Nigeria, the federal government has issued a stern warning, threatening to open borders for cement importation if manufacturers do not take action to reduce prices.
The Minister of Housing and Urban Development, Ahmed Dangiwa, expressed concern over the unreasonable and unacceptable increase in cement prices, stressing that key components of cement production are locally sourced.
Speaking at an emergency meeting with cement and building materials manufacturers in Abuja, Dangiwa emphasized that the final price of cement should not be dependent on the dollar, as major input materials such as limestone, clay, silica sand, and gypsum are readily available within Nigeria.
Dangiwa criticized manufacturers for using excuses such as high gas prices and mining equipment costs to justify price hikes, urging them to be more patriotic and considerate of the current economic challenges facing Nigerians.
He cited the willingness of BUA Cement to lower prices below the agreed industry standard of N7000 to N8000, emphasizing the need for other manufacturers to follow suit.
Addressing concerns raised by manufacturers, Rabiu Umar, the Group Chief Commercial Officer of Dangote Cement, attributed the high cost of cement production to factors such as gas prices indexed to the dollar and the need to import mining equipment.
Umar also highlighted challenges related to gas quantity and quality, as well as illegal cement exports driven by currency devaluation.
The Minister criticized the Cement Manufacturers Association of Nigeria for not regulating cement prices in the country, prompting plans to establish a committee comprising representatives from each manufacturer, the association, and the government to address the issue.
The government’s threat to open borders underscores the urgency to mitigate the impact of rising cement prices on consumers and the construction industry, as stakeholders seek collaborative solutions to stabilize the market and ensure affordability for all Nigerians.
