By Babatunde Solanke
Cement Manufacturers on Monday, 19 February, 2024 agreed to sell a 50kg bag of cement at a retail price between N7,000 and N8,000, depending on location across the country
The manufacturers also added that the reduction in price from the current market price would depend on largely the fulfillment of certain government interventions to reduce the critical challenges faced by the industry.
The Minister of Works, David Umahi, made this disclosure after a meeting with leading manufacturers on Monday in Abuja.
The Federal Government arranged meeting with the manufactures following the astronomical rise in the price of the commodity to N13,000in several retail stores in the Federal Capital Territory, and Enugu, and other parts of the country, showing the impact of inflation within the country.
The price hike of the commodity was attributed largely to the increase in wholesalers reselling to retailers and the escalating inflation rates.
Umahi during the meeting with the manufacturers,lamented the current rate, explaining that it was abnormal and detrimental to economic prosperity sought after by the current administration.
Reading the communiqué after the meeting directed by President Bola Tinubu,Umahi said certain issues including smuggling, bad roads, high energy costs, and the Forex crisis caused the high prices but stressed that manufacturers have expressed their readiness to be willing to bring down the prices in the future.
“The cement manufacturer has noted to the government that the present high cost of cement in the market is very much abnormal in some locations nationwide. Ideally, they noted that cement price, and retail price to a consumer should not cost more than between N7,000 to N8,000 per 50 kg bag of cement.
“Therefore, the government and the cement manufacturers, which are Dangote Plc, BUA Plc and Lafarge Plc have agreed to have their cement price nationwide between N7,000 to N8,000 naira per 50 kg pack of cement, depending on the locations, which means that this price depends on the locations.
“Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today,” the minister said.