FG, Others Finally Agree on Price of 50kg Bag of Cement

FG, Others Finally Agree on Price of 50kg Bag of Cement

  • Minister of industry, trade, and investment is advocating for gas concession for cement companies, just like with electricity companies
  • She hinted that this was the subject of discussion at the recent meeting between cement companies and the minister of works
  • She said that participants agreed that the retail price of cement shouldn't go above N7,000 to N8,000.00 for a 50kg bag of cement

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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Doris Nkiruka Uzoka-Anite, minister of industry, trade, and investment, has requested that cement makers be granted the same gas concession that electricity firms already have.

She said this would help address the increased operating costs that led to the product.

Nigerian government, cement producers discuss price of 50kg bag of cement
Cement producers and the government have observed that the current high cost of cement is unusual in some parts of the country. Photo Credit: Dangote Cement
Source: UGC

At a joint House of Representatives' committee hearing on solid minerals, industry, commerce, and special duties, Uzoka-Anite addressed stakeholders on behalf of Ambassador Nura Rimi, the permanent secretary in her ministry.

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The minister pointed out that the recommendation was made during a recent meeting between the minister of works, Engr. David Umahi, and significant cement-producing enterprises.

She said:

“There is need for friendly gas pricing. The meeting recommended the gas-to-power concession given to the electricity companies should also be enjoyed by cement companies.”

Vanguard reported that she listed a number of difficulties that cement producers face, such as high foreign exchange rates, petrol prices, hefty import taxes on replacement components, an inadequate road network, and cement smuggling to nearby countries.

New cement price

According to Uzoka-Anite, cement producers and the government have observed that the current high cost of cement is unusual in some parts of the country.

The minister said it was agreed on during the meeting that the retail price of cement should not exceed N7,000 to N8,000.00 per 50kg bag, depending on the region.

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She said that the manufacturers had voluntarily agreed to do so and to penalise any of their distributors or retailers found to be in violation of the government's advice to establish a price monitoring system to assure compliance.

She mentioned that the nation has large cement companies, including Lafarge Holcin, BUA Group, and Dangote Industries Limited, and that the industry is self-sufficient.

SON sends message to cement manufacturers

Legit.ng also reported earlier that Dr. Ifeanyi Chukwunonso Okeke, the director general/chief executive of the Standard Organization of Nigeria (SON), instructed building engineers, cement manufacturers, and block makers to uphold standards to reduce the number of building collapse incidents in the country.

He said this during a one-day sensitisation training for block moulders in Abeokuta, Ogun state, on Thursday, April 18.

The DG, represented by the director of Southwest, Talatu Ethan, noted that building collapses pose a severe risk to Nigeria since they jeopardise the country's construction industry and overall progress.

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Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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