The Federal Government has warned cement manufacturers over indiscriminate hike in cement prices, threatens to open border for cement importation.
The Minister of Housing and Urban Development, Ahmed Dangiwa, issued the warning at an emergency meeting with cement and building materials manufacturers on Tuesday in Abuja.
Recall that cement manufacturers in Nigeria had recently increased cement prices, blaming high cost of gas and mining equipment for the decision.
According to Group Chief Commercial Officer of Dangote Cement, Rabiu Umar, “It is safe to say we are all Nigerians and we are all facing the current head weight that is happening. I would like to speak on the popular belief that most of the raw materials to produce cement are available locally.
“While we have limestone and in some cases, we have gypsum and some cases coal, the reality is that it takes a lot of forex-related items to produce cement.”
Reacting to the hike in price, Dangiwa explained that cement manufacturers in Nigeria are greatly benefitting from the ban on cement importation, adding that if the government decides to open the border for mass importation, prices of cement would crash and local manufacturers would be gravely affected.
He further criticized manufacturers’ excuses of increase in price of gas and mining equipment, stating that gas is a raw material found in the country and equipments have been used for decades and not purchased every day.
In his words, “The challenges you speak of, many countries are facing the same challenges and some even worse than that but as patriotic citizens, we have to rally around whenever there is a crisis to change the situation.
“The gas price you spoke of, we know that we produce gas in the country. The only thing you can say is that maybe it is not enough.
“Even if you say about 50 percent of your production cost is spent on gas prices, we still produce gas in Nigeria. It’s just that some of the manufacturers take advantage of the situation. As for the mining equipment that you mentioned, you buy equipment and it takes years and you are still using it.”
He further advised manufacturers to be patriotic and urged others to emulate BUA cement, that has been willing and is still willing as at the last time he spoke with them, to crash the price of their cement, lower than the N7000, N8000.
