Cement manufacturers have attributed the recent increase in cement prices across the country to a surge in their operating costs.
Following a meeting convened by the Minister of Works, David Umahi, attended by representatives of Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc, an agreement was reached to reduce the price of cement…..CONTINUE READING
The manufacturers agreed to bring down the price of the commodity from the range of N9,000 to N15,000 per 50kg to between N7,000 and N8,000, depending on the location nationwide.
According to The Nation, this decision emerged after a nearly three-hour-long discussion, during which the challenges affecting the price of cement were extensively deliberated upon.
Representatives of the cement manufacturers highlighted the factors contributing to the high cost of cement, including the increased cost of gas, import duties, poor road networks, and the high foreign exchange rate against the naira.
Kabir Rabiu, the Executive Director of BUA Cement, emphasized that energy costs had surged from 39 percent to 60 percent due to the increased price of gas.
Additionally, factors such as the disparity between demand and supply, seasonal fluctuations, and smuggling across the border were identified as contributing to the price surge.
Despite the challenges, the manufacturers expressed their commitment to complying with the agreed-upon price reduction and implementing a price monitoring mechanism to ensure compliance.
The government also pledged to address the challenges faced by the manufacturers to further facilitate a drop in cement prices.
