Cement manufacturers warn of N9,000 price increase

BUA cement slashes prices to N3,500
BUA cement slashes prices to N3,500

The Cement Producers Association of Nigeria has issued a warning regarding the Nigerian government’s intention to introduce concrete roads, stating that it could lead to an increase in cement prices from the current N5,000 to N9,000 per bag.

In a joint statement by the National Chairman, Prince David Iweta, and National Secretary, Chief Reagan Ufomba, the association urged the government to address the ongoing issue of cement price hikes by promoting increased participation in the cement industry.

Call for road design overhaul

They stressed that Nigerians should not be paying more than N5,600 per bag for cement.

While commending the Works Minister’s support for cement-made roads, the association cautioned about potential consequences if the supply side of the issue is not properly managed.

As a solution, they proposed that the government focus on road design that allows for both cement technology and asphalt pavement to coexist.

This approach would provide sufficient time for a smooth transition, allowing contractors to invest in necessary equipment and retooling.

The association also called for the conclusion of the backward integration policy initiated during the late Yar’adua administration to enhance the availability and affordability of cement in the country.

They further urged the government to harmonize fiscal and monetary policies and take decisive action in the foreign exchange market, restructuring bad loans of manufacturers, and reviewing palliative measures.

The Cement Producers Association emphasized that addressing these issues is essential to curbing rising cement prices and ensuring affordable housing for Nigerians.