Nigerian Government Summons Cement Manufacturers Over Price Surge

The Nigerian government has taken a decisive step amidst the escalating retail prices of cement in the country, summoning all cement manufacturers for a crucial meeting with the Minister of Works, David Umahi. The move comes in the wake of reports indicating a significant surge in the cost of cement, with distributors implementing fresh price increases across Nigeria.

According to Edward Uchenna Orji, the Special Adviser to the Minister, this decision was made in response to the concerning hike in cement prices witnessed recently in the market. Notably, Nigeria stands as one of the major cement producers on the continent, but the relentless rise in cement prices, particularly this year, has raised issues amidst the high inflation affecting the building materials sector.

In locations like Kubwa and Bwari in the Federal Capital Territory, the retail price of a 50-kilogram bag of Dangote cement has surged to between N8,600 and N9,600, while BUA sells within the range of N8,500 to N9,500. Traders in Kubwa Phase 4 highlighted that certain manufacturers had raised depot prices significantly amid this widespread price hike.

Umahi expressed his concerns over the continuous escalation of cement costs despite substantial patronage from road and housing contractors towards cement manufacturers. Against this backdrop, the urgent meeting called by the Minister is set to include key industry players such as Dangote Plc, BUA Plc, Larfarge, and other major manufacturers.

The gathering, scheduled to take place at the Federal Ministry of Works in Mabushi, Abuja, aims to address the widening gap between the ex-factory price and the market price of cement. Umahi emphasized the importance of examining the existing situation and addressing pertinent issues collectively to mitigate the challenges faced by cement manufacturers.