The Nigerian government has convened a meeting with all cement manufacturers in the country, led by the Minister of Works, David Umahi, to address the surging retail prices of cement.
The announcement came through a statement by the Special Adviser to the Minister, Edward Uchenna Orji, on Saturday. Recent reports indicated a 30% increase in cement costs nationwide, prompting concerns.
Despite Nigeria being a major cement producer on the continent, rising prices persist, exacerbated by high inflation in the building materials market. Notably, in Kubwa, Bwari area of the Federal Capital Territory, a 50-kilogram bag of Dangote cement now ranges between N8,600 and N9,600, while BUA sells at prices between N8,500 and N9,500.
“Dangote is N9600 while BUA goes for N9500 per bag”, a seller at Kubwa Phase 4 had told SaharaReporters on Friday.
The retailer complained that some manufacturers had increased their depot prices to a new high following the general hike in prices of things.
The statement said the minister was “worried by the escalating cost of cement despite huge patronage by road and housing contractors to cement manufacturers.”
Those invited to the urgent meeting include Dangote Plc, BUA Plc, Larfarge and the other manufacturers.
The meeting is scheduled to take place at the Federal Ministry of Works, Mabushi, Abuja.
The minister was quoted as saying that “It is common knowledge that the manufacturers have their challenges, which we shall look into, but from our findings, the disparity between ex-factory price and the market price is wide.
“We therefore need to look into the situation and other issues with a view to finding a common front.”
The surge in cement prices poses a significant challenge for Nigeria’s construction industry, economic growth, and the welfare of its citizens. However, concerted efforts by the government, cement manufacturers, and other stakeholders are crucial in mitigating these challenges and fostering a conducive environment for sustainable development. Through collaborative dialogue, policy reforms, and targeted interventions, Nigeria can navigate the current crisis and emerge stronger, ensuring equitable access to essential building materials and promoting inclusive growth for all segments of society.
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