Dangote Finally Joins Hands with Fellow Billionaire to Crash Cement Price

• Dangote and the BUA Group have pledged to freeze cement prices for contractors involved in the Renewed Hope initiative to ease economic hardship
• They will also allocate N20 billion annually to train skilled workers in the building sector and back the government’s plan to build more durable concrete roads.
• Additionally, the Cement Manufacturers Association of Nigeria is being reorganised to ensure smooth implementation of these commitments, with new leadership

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Both Dangote and the BUA Group have committed to maintaining the price of cement at the same level without any future increases for all contractors managing building projects under the Renewed Hope initiative, to lessen the suffering caused by economic hardship.

Additionally, they declared that N20 billion (about N30 per bag of cement produced) will be allocated annually to train craftspeople in the building sector.

According to information obtained by BusinessDay, cement producers have joined forces to lower the cost of housing projects under the Renewed Hope Housing initiative, which includes the Renewed Hope Social Housing Program, Renewed Hope Cities, and Renewed Hope Estates, among others.

In contrast to the past, when Nigeria primarily utilised asphalt for road development, the current administration has declared that it will now build more concrete roads.

The initiative was launched as part of the Federal Government’s broader efforts to provide more durable road improvements and inclusive, affordable housing for Nigerians nationwide.

The BUA Group’s chairman, Abdul Samad Rabiu, hinted at this during a briefing with State House journalists following their meeting with President Bola Tinubu on Thursday. He said they had chosen to back Tinubu’s plan to address the nation’s severe housing shortage.

“We have decided. Alhaji Aliko Dangote of Dangote Cement approached me, and I agreed with him that we should do everything to support Mr President’s Renewed Hope agenda. We have decided that we are going to freeze the price of cement for any contractor involved with the Renewed Hope project or projects,” he noted.

“What this means is that for any company or individual involved in a project under the Renewed Hope initiative, the price of cement will be frozen. There will be no increase for the foreseeable future.

“We are doing this to support Mr President’s Renewed Hope initiative. That is something Alhaji Aliko Dangote actually proposed. I must give him credit, and I concur with him. So, we have agreed to do this.”

He revealed that they would support their decision with letters to the government’s ministries, departments, and agencies.

“I also want to commend the Honourable Minister of Works, Engineer Dave Umahi, for the initiative he took to ensure that all roads are concrete. Concrete roads are more durable; they last much longer and the price will be cheaper than bitumen,” Rabiu said.

To strengthen their commitment, he also declared that the board of the Cement Manufacturers Association of Nigeria (CEMAN) will be reconstituted.

“Engineer Yusuf Binji of BUA Cement has been appointed as the new chairman of CEMAN to ensure that this project we are doing with the ministry is executed properly.

“So, Engineer Binji is now the chairman of CEMAN and he will drive the agenda to ensure that all companies that need cement under the Renewed Hope initiative receive it at a price that will not be increased for quite some time. This is what we are doing to support His Excellency and the government’s initiative. We are also reorganising the Cement Technology Institute.

“We are also going to support the training of artisans in the construction industry. So, a lot of things are happening,” the BUA chairman said.

Tinubu orders reversal in cement prices of BUA, Dangote, others

Legit.ng reported that president Bola Ahmed Tinubu instructed cement companies to return to the previous pricing of the commodity.

The minister of Works, Senator David Umahi, announced this to reporters following Thursday's inspection of the BUA cement factory in Sokoto.

Umahi stated that during a meeting with the manufacturers, the president mandated them to revert to the previous cement price.

Source: Legit.ng