The Federal government is unhappy with the high prices of cement in Nigeria. They’re saying that some materials used to make cement, like limestone and clay, are found in Nigeria, so the price shouldn’t be so high.
They also mentioned that gas, which is used in cement production, is available in Nigeria, so it shouldn’t be a big expense.
The Minister of Housing and Urban Development, Arc Ahmed Dangiwa, talked about how the government had closed the borders to stop cement from being imported, to support local cement makers.
But now, they’re saying if the local manufacturers don’t lower their prices, they might open the borders again, which could bring down prices but hurt local businesses.
Dangiwa mentioned that BUA Cement has agreed to lower its prices, so he doesn’t understand why other companies can’t do the same.
He also pointed out that excuses like high gas prices and expensive mining equipment shouldn’t be used to justify the high cost of cement.
A representative from Dangote Cement, Rabiu Umar, explained that gas and imported equipment are big costs for cement production. He said that when the value of the dollar goes up, it makes these costs even higher.
The Minister blamed the Cement Manufacturers of Nigeria for not controlling the prices of cement.
The association representing the cement makers said they don’t set prices, they just see what prices are in the market.
To solve the problem, the government will set up a committee with representatives from the cement companies, their association, and the government to figure out how to lower cement prices.
