‘Price will crash’ — FG threatens cement producers with mass importation

The federal government says it can open the borders for mass importation of cement if manufacturers of the product fail to bring down the cost of the product.

Ahmed Dangiwa, minister of housing and urban development, made this known on Tuesday in Abuja at a meeting with cement and building materials manufacturers.

The meeting was summoned to address the astronomical rise in the cost of cement nationwide.

This followed the agreement between the federal government and major manufacturers of the product on February 19, 2024, to peg the price of 50kg bag of cement in the range of N7,000 and N8,000.

Dangiwa said in the past few months, the country had witnessed a recurring and concerning increase in the prices of cement and other building materials.

“Clearly, this is a crisis for housing delivery. An increase in essential building materials means an increase in the prices of houses,” he said. 

“We are not the only country facing these challenges, many countries are facing the same type of challenges that we’re facing, some even worse than that.

“But, as patriotic citizens, we have to rally round the country when there is crisis, to ensure that we do our best to save the situation.

“Honestly speaking, we have to sit down and look at this critically and know how you should go back and think of it.”

According to the minister, the government ceased cement importation to enable local companies to increase output and offer goods at a lower cost.

“Otherwise the government can open the borders for mass importation of cement, the price will crash, but you will have no business to do,” he said. 

Dangiwa said the high cost of gas and manufacturing equipment, which were cited by cement makers as the reasons for the price hike, were insufficient to justify such outrageous pricing.

He expressed his displeasure at the position of the Cement Manufacturer Association of Nigeria (CEMAN), saying the association “does not interfere with the pricing of cement”.

The minister said the association should not just be mute when things were going wrong.

“One person cannot be selling at N3500 per bag and another selling at N7000 per bag and you cannot call them to order,” Dangiwa said.

“The association is expected to monitor price control, otherwise the association has no need to exist.”

CEMAN: GAS SUPPLY AFFECTING OUR OPERATIONS 

On his part, Salako James, executive secretary, CEMAN, emphasised the challenges of gas supply to heavy users like the cement industry.

James told the government to create a naira-based window and address price discrepancies between manufacturers and market prices.

Salako asked for government intervention to help stabilise the situation and bring sanity to the economy.