Cement Price: FG Lists 6 Key Agreements Reached with Dangote, Bua, Lafarge

• The federal government has listed six agreements reached with cement manufacturers after their closed-door meeting in Abuja
• The honourable minister of Works, David Umahi, met with Dangote, BUA, Lafarge over the high cost of cement in the country
• According to a communique from the ministry of Works, both parties, after the meeting, agreed to reconvene in 30 days to review the progress made

Legit.ng journalist Adekunle Dada has over 5 years of experience covering metro and government policy

FCT, Abuja - The federal government met with the cement manufacturers on how to tackle the escalating cement price in the country and agreed on six important things.

The meeting had in attendance the minister of Works, Senator Nweze David Umahi GON, the minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, cement manufacturers (Dangote Cement Plc, BUA Cement Plc, Lafarge Africa Plc) and the Cement Producers Association.

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According to a communique issued by the ministry of Works on its website, the federal government and the cement manufacturers agreed on the following:

• The challenges cement manufacturers are facing

a. Cost of gas;

b. High import duty on spare parts;

c. Bad road network;

d. High foreign exchange; and

e. Smuggling of cement to neighbouring nations.

• The federal government noted the challenges and agreed to take necessary actions.
• The cement manufacturers and the Government agreed that the current high price of cement is abnormal. Hence, cement manufacturers agreed that cement cost would not be more than between ₦7,000.00 and ₦8,000.00/50kg bag, depending on the location.
• The cement manufacturers agreed to set up a price monitoring mechanism to ensure compliance and sanction distributors or retailers found wanting.
• The Federal government said it expects the agreed price to drop after securing the government's interventions on the challenges of the manufacturers
• Both parties agreed to reconvene in 30 days to review the progress made.

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The ministry also uploaded a video of the meeting via its X handle (formerly known as Twitter)@FMWNIG.

Cement producers give conditions for crashing price

Legit.ng earlier reported that the national chairman of the Cement Producers’ Association of Nigeria (CEPAN), David Iweta, said the association was ready to help the Nigerian government to crash cement prices within 30 days if taken along as part of efforts to find a solution.

Iweta attributed the continued increase in the product's price to the challenge of demand outweighing supply in the sector.

Source: Legit.ng