Federal Government and Cement Manufacturers Collaborate to Combat Soaring Cement Prices

Federal government In a concerted effort to tackle the incessant rise in cement prices across Nigeria, recently convened a high-level meeting with key stakeholders in the cement manufacturing industry. Chaired by the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi GON, and co-hosted by the Honourable Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, the closed-door session aimed to deliberate on the challenges facing cement production and distribution in the country. Attended by representatives from major cement producers including Dangote Cement Plc, BUA Cement Plc, Larfage Africa Plc, and the Cement Producers Association, the meeting took place at the Honourable Minister of Works’ office in Mabushi, Abuja.

Agreement Reached with Federal government on Price Range Amid Concerns Over Market Disparities
Addressing the media after the meeting, the Honourable Minister of Works highlighted the primary objective of the gathering—to address public concerns over the skyrocketing cost of cement. He emphasized the stark differences between the ex-factory price set by manufacturers and the retail price experienced by consumers, underscoring the urgency to find sustainable solutions to curb the relentless price hikes. The Minister expressed optimism that the collaborative efforts between the Federal government and industry players would yield tangible outcomes, alleviating the financial burden on Nigerians seeking to access affordable building materials.

Echoing similar sentiments, the Honourable Minister of Industry, Trade and Investment voiced her dismay over the persistent surge in cement prices despite existing regulatory measures and the implementation of the Backward Integration Programme (BIP). She lamented the apparent inefficacy of the BIP in achieving its intended objectives of stabilizing prices and fostering industry growth. The Minister’s remarks underscored the need for a thorough reassessment of existing policies and a concerted drive towards effective implementation strategies to address the underlying challenges facing the cement manufacturing sector.

Concrete Steps Towards Price Regulation and Industry Development: Federal Government

In a significant development, both federal government officials and cement manufacturers reached a consensus on a mutually acceptable price range for cement products. Agreed upon during the meeting, the price range of N7,000 to N8,000 per 50 kg bag signals a collaborative commitment to strike a balance between affordability for consumers and sustainability for manufacturers. This agreement marks a pivotal step towards restoring market stability and instilling confidence among stakeholders in the construction industry. Moving forward, the implementation of this agreed-upon price range is expected to mitigate market uncertainties and foster a conducive environment for sustained growth and development within the cement manufacturing sector.

In-depth Analysis of the Meeting

During the meeting, participants engaged in a thorough examination of the factors contributing to the surge in cement prices. Issues such as production costs, supply chain disruptions, and market demand were meticulously scrutinized to identify potential solutions. The Federal Government emphasized its unwavering commitment to tackling economic challenges and pledged to explore all avenues to mitigate the impact of rising commodity prices, including cement. Furthermore, stakeholders underscored the importance of collaborative efforts between the Federal government and private sector players to foster sustainable growth and development in the cement industry.

Industry Stakeholders Express Confidence in Government Intervention

Following the issuance of a communique outlining the outcomes of the meeting, spokespersons for various cement manufacturers expressed gratitude for the Federal government’s proactive approach in addressing industry concerns. Representatives from Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc commended the Honourable Ministers for their dedication to national development and pledged full cooperation in implementing the agreed-upon measures.

Mr. Arvind Pathak of Dangote Cement Plc highlighted the constructive dialogue between stakeholders and announced plans for further collaboration within a specified timeframe to refine strategies for sustainable market stability. Similarly, Mr. Kabiru Rabiu of BUA Cement Plc reaffirmed the company’s commitment to boosting supply and easing market pressures by introducing an additional 6 million tons of cement in the near future. Additionally, Mr. Gbenga Onimowo of Lafarge Africa Plc expressed optimism regarding the forthcoming Federal government support and reiterated the importance of collective action to address industry challenges comprehensively.

Call for Increased Participation in the Cement Sector

In a bid to diversify and expand the cement manufacturing landscape, Prince David Aweta, President of the Cement Producers Association, advocated for the inclusion of more players in the industry. Recognizing the current concentration of operators as a contributing factor to price fluctuations, Prince Aweta emphasized the need for greater participation to enhance market competitiveness and stability.

By encouraging new entrants into the market, stakeholders aim to foster healthy competition and reduce the vulnerability of consumers to price fluctuations, particularly during periods of high demand such as the dry season. As the Federal government and industry stakeholders continue to collaborate, efforts to address the root causes of cement price hikes are expected to yield tangible benefits for both producers and consumers alike.