Cement manufacturers on Monday agreed to sell a 50kg bag of cement at a retail price between N7,000 and N8,000, depending on location nationwide.
The Minister of Works, David Umahi disclosed this after a meeting with leading manufacturers in Abuja.
The meeting was scheduled to urgently address the spiraling price of the commodity which hit approximately N13,000 in several retail stores in the Federal Capital Territory, and Enugu, by the weekend, consequent to the galloping inflation in the country.
The manufacturers stated that the price drop from the current market price would depend on the fulfilment of certain government interventions to ameliorate critical challenges faced in the industry.
The meeting, it was gathered was directed by President Bola Tinubu,
In a communique after the meeting, the minister said certain issues including smuggling, bad roads, high energy costs, and the Forex crisis caused the high prices but stressed that manufacturers have expressed their readiness to be willing to bring down the prices in the future.
He said, “The cement manufacturer has noted to the government that the present high cost of cement in the market is very much abnormal in some locations nationwide. Ideally, they noted that cement price, and retail price to a consumer should not cost more than between N7,000 to N8,000 per 50 kg bag of cement.
“Therefore, the government and the cement manufacturers, which are Dangote Plc, BUA Plc and Lafarge Plc have agreed to have their cement price nationwide between N7,000 to N8,000 naira per 50 kg pack of cement, depending on the locations, which means that this price depends on the locations.
“Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today.”
Our findings on Monday indicated that the price hike was attributed to the increase in wholesalers reselling to retailers and the escalating inflation rates.
Umahi lamented the current rate stating that it was abnormal and detrimental to the economic prosperity sought after by the current administration.
The Africa Health Report reported on Sunday that Umahi called for a meeting with leading cement producers in the country to address the increasing prices of their product.
A statement released by his Special Adviser on Media, Orji Uchenna Orji, in Abuja on Saturday, revealed the minister’s concern over the rise in the cost of cement.
“We therefore need to look into the situation and other issues to find a common front.”
Those invited are Dangote Plc, BUA Plc, Lafarge, and others.
