The Federal Government has threatened cement manufacturers in the country over the high cost of the product.
Manufacturers should reduce the price of cement failure which the federal government would be forced to open the nation’s borders for the importation of cement.
The minister of Housing and Urban Development, Ahmed Dangiwa issued the threat on Tuesday during an emergency meeting with cement manufacturers in the country.
Biggest cement manufacturers in the country such as Dangote, BUA, Portland Cement sent representatives to the meeting held in Abuja, the nation’s capital.
The meeting comes on the heel of a similar one held by Dave Umahi, Minister of Works with cement manufacturers on Monday, where it was agreed to slash the price of 50kg bag of cement to between N7000 and N8000 from the price of N12000 per bag.
The manufacturers however gave some conditions to the federal government to reduce the current price, including the reduction in the cost of gas and fuel, repair of roads, amongst others.
Speaking yesterday, Dangiwa said the price of cement is too high in the country despite the fact that most raw materials used by manufacturers are sourced locally.
He said the manufacturers have no excuse to charge exorbitant price for the product, saying they have a choice to bring the price down or the government would be forced to import the product.
Reacting to manufacturers complaints of high cost of production, the minister said “The gas price you spoke of, we know that we produce gas in the country. The only thing you can say is that maybe it is not enough.
“Even if you say about 50 per cent of your production cost is spent on gas prices, we still produce gas in Nigeria. It’s just that some of the manufacturers take advantage of the situation. As for the mining equipment that you mentioned, you buy equipment and it takes years and you are still using it.
“It is safe to say we are all Nigerians and we are all facing the current head weight that is happening. I would like to speak on the popular belief that most of the raw materials to produce cement are available locally.
“While we have limestone and in some cases, we have gypsum and some cases coal, the reality is that it takes a lot of forex-related items to produce cement.”
Recall that BUA Chairman, Abdulsamad Rabiu had during a meeting with President Tinubu last year promised to slashed the price of 50kg bag of cement to N3,500.
He has failed to live up to his words as BUA cement currently sells for N12000 and above depending on the location in the country.
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