A day after the Nigerian government and major cement manufacturers in the country reached an agreement to reduce the price of cement, a minister issued a warning to manufacturers, threatening massive importation if prices were not lowered nationwide.
Ahmed Dangiwa, the Minister of Housing and Urban Development, delivered the ultimatum on Tuesday in Abuja during a meeting with Cement and Building Materials Manufacturers, according to the News Agency of Nigeria.
Earlier discussions among major cement manufacturers in Nigeria, including Dangote, BUA, and Lafarge, had resulted in a commitment that the price of a bag of cement would not exceed between N7,000 and N8,000.
This resolution came after a separate meeting on Monday involving the Minister of Works, David Umahi, the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, and representatives of key cement companies in Nigeria.
During the ongoing cost-of-living crisis in Nigeria, the price of a bag of cement used for construction has risen to about N13,000 in many parts of the country.
While Nigerians await the implementation of Monday’s agreement with cement manufacturers to lower prices, the government issued a warning on Tuesday.
Minister Dangiwa expressed concerns over the alarming increase in cement and other building material prices in recent months, indicating that if manufacturers fail to reduce prices, the government may resort to opening borders for cement importation.
“Clearly, this is a crisis for housing delivery.
An increase in essential building materials means an increase in the prices of houses,” the minister remarked.
“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,” he emphasized.
Mr. Dangiwa emphasized that cement manufacturers are reaping the rewards of government policies.
“The government stopped importation of cement in other to empower you to produce more and sell cheaper,” he said.
“Otherwise the government can open the borders for mass importation of cement, the price will crash, but you will have no business to do.”
Mr. Dangiwa, however, stated that the government expects manufacturers to enforce fixed prices among wholesalers and retailers.
He expressed dissatisfaction with the Cement Manufacturers Association of Nigeria (CEMAN)’s stance that the association “does not intervene in cement pricing.”
“One person cannot be selling at N3500 per bag and another selling at N7000 per bag and you cannot call them to order,” he added.
“The association is expected to monitor price control, otherwise the association has no need to exist.”
Earlier, the Executive Secretary of CEMAN, Salako James, commended the housing policy of President Bola Tinubu’s administration, highlighting its laudable nature and urging responsible Nigerians to support it.
However, he also raised some concerns and appealed to the government to address them to tackle the issue of cement pricing.
Mr. Salako identified challenges such as gas supply to heavy users like the cement industry, advocating for a mechanism where gas could be purchased with Naira instead of dollars.
He also expressed concerns about the distribution channel, noting a significant disparity between manufacturer prices and market prices. He called for government intervention to stabilize the situation and restore order to the economy.
Following the meeting, the minister instructed the formation of a committee to assess the situation and propose actionable resolutions that would benefit the average Nigerian.