The Federal Government in collaboration with cement producers have agreed on a nationwide price range of N7,000 to N8,000 per 50 kg bag price of cement to halt the astronomical rise in the price of the product.
This agreement was part of a deal struck after several hours of meeting held behind closed doors at the headquarters of the Ministry of Works, between the Federal Government and cement manufacturers, in Abuja, yesterday.
Senator David Umahi while declaring the price modification, said the manufacturers tentatively agreed to sell a 50kg bag of cement at a retail price between N7,000 and N8,000, depending on location nationwide.
Despite the agreed-upon price reduction, manufacturers stressed that the fall from current market rates is subject to the government’s commitment to addressing serious difficulties in the industry.
Retail price for cement jumped from N5,000 to N10,000 within one week in the open market, after wholesalers citing increasing cost of transportation and other variables, made adjustments to the price they sell to retailers.
Retailers in turn transferred the additional cost burden to consumers to stay afloat.
This prompted President Bola Tinubu to order the Minister of Works, David Umahi, and his Trade and Investment counterpart, Dr. Doris Uzoka-Anite to meet with Cement manufacturers to find a solution to the crisis.
Umahi, while calling for the meeting expressed the Federal Government’s concern over the development adding that if the situation wasn’t brought under control, it had the potential of hurting the prosperity agenda of the current administration.
After the meeting, Umahi read out a communique in which he mentioned concerns raised by the manufacturers.
These concerns include bad roads, smuggling, high cost of energy, and the Forex crisis. This according to the manufacturers was the primary reason behind the price hike.
He also said the manufacturers expressed willingness to reduce the prices going forward. Manufacturers at the meeting include Dangote Cement PLC, BuA Cement PLC, Larfarge Africa PLC, and Cement Producers Association.
