The price of 50 kg bags of cement would be set by the federal government and leading cement manufacturers between N7,000 and N8,000.
Following a protracted discussion with major cement manufacturers in Abuja on Monday, Minister of Works and Housing David Umahi revealed this information to reporters.
The Real Estate Developer’s Association of Nigeria (REDAN) predicted that rising cement prices will negatively impact the nation’s economy in a report released on February 12, 2024.
According to REDAN, the country is experiencing economic difficulty, and the rising cost of cement will make things worse for Nigerians, especially those who work in the real estate industry.
The growing cost of cement prompted the minister of works to convene a meeting with cement makers on February 17, 2024.
Cement prices fluctuated from roughly N4,000 per bag a few weeks ago to between N8,000 and N10,000.
The Ministry of Works has called in cement manufacturers Dangote, BUA, and Lafarge, among others.
Speaking during the meeting on Monday, the manufacturers did state that the reduction in price from the going rate would be contingent upon the implementation of specific government initiatives aimed at addressing significant issues facing the sector.
They stated that cement prices would vary across the country.
The discussion took place in the context of the commodity’s skyrocketing price increase to over N13,000 in a number of retail locations across the federal capital territory (FCT), Enugu, and other regions of the nation.
The meeting, called by President Bola Tinubu, to find a lasting solution to the increase, had Umahi lamenting that the price was abnormal and detrimental to the economic prosperity sought after by the current administration.
On his part, the minister said certain issues, including smuggling, bad roads, high energy costs, and the foreign exchange crisis, caused the high price.
However, he said manufacturers are willing to bring down the prices.
“The cement manufacturers and the government have noted that the present high cost of cement in the market is abnormal in some locations nationwide,” Umahi said.
“Ideally, they noted that cement price and retail price to a consumer should not cost more than between N7,000 and N8,000 per 50 kg bag of cement.
“Therefore, the government and the cement manufacturers, which is Dangote Plc, BUA Plc and Lafarge Plc, have agreed to peg their cement price nationwide between N7,000 and N8,000 per 50 kg bag of cement, depending on the location.
“Which means that this price depends on the location. Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today.”
The meeting also had in attendance, Doris Uzoka-Anite, minister of trade and investment, as well as representatives from the major manufacturers.