In response to the persistent hike in cement prices in Nigeria, the federal government has issued a stern warning to cement manufacturers, threatening to open borders for cement importation if local producers fail to address the issue.
Minister of Housing and Urban Development, Arc Ahmed Dangiwa, emphasised the government’s stance during an emergency meeting held with cement and building materials manufacturers in Abuja. Dangiwa highlighted the availability of key input materials for cement production within the country, stating that their prices should not be subject to foreign exchange fluctuations.
The minister criticised manufacturers for citing increased costs of gas and mining equipment as reasons for the price hike, pointing out that gas is locally sourced and mining equipment is a long-term investment. He urged manufacturers to prioritise patriotism and collaborate with the government to resolve the crisis.
However, Group Chief Commercial Officer of Dangote Cement, Rabiu Umar, attributed the price hike to the significant portion of production costs indexed to the dollar, including gas and equipment expenses. He also mentioned challenges related to gas quantity and border smuggling due to currency devaluation.
The blame game extended to the Cement Manufacturers of Nigeria, with Dangiwa criticising the association for not regulating cement prices. Consequently, the ministry announced plans to establish a committee comprising representatives from each cement manufacturer, the association, and the government to address the issue.
The government’s threat to open borders for cement imports underscores its determination to curb price hikes and ensure affordability for consumers.
The outcome of the proposed committee’s deliberations will be closely watched as stakeholders seek solutions to the ongoing crisis in the cement industry.
