The Federal Government has issued a stern warning, indicating the possibility of reopening borders to cement imports if local manufacturers do not comply with reducing cement prices in Nigeria. Minister of Housing and Urban Development, Arc Ahmed Dangiwa, emphasized the availability of locally sourced materials like limestone, clay, silica sand, and gypsum for cement production, suggesting that these materials should not be dollar-rated.
Dangiwa, speaking at an emergency meeting with cement and building materials manufacturers in Abuja, expressed dissatisfaction with the recurring disproportionate increase in cement prices, calling it unacceptable. He urged manufacturers to be more patriotic and criticized excuses related to high gas prices and mining equipment costs, noting that gas is a raw material found within the country and mining equipment is a long-term investment.
In response, manufacturers cited the high cost of gas and mining equipment as reasons for the hike in cement prices. Rabiu Umar, Group Chief Commercial Officer of Dangote Cement, highlighted the impact of forex-related items on cement production costs, with gas accounting for almost half of the total production cost. He also mentioned challenges related to the quantity and quality of gas, as well as border issues leading to increased demand and reduced stock availability.
The minister criticized the Cement Manufacturers of Nigeria for not regulating cement prices in the country. He announced plans to establish a committee comprising representatives from each cement manufacturer, the association, and the government to address the high price of cement in Nigeria.
