Producers Warn FG of Imminent N9,000 Hike in Cement Costs

Luggage of Cement


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The Cement Producers Affiliation of Nigeria has warned that the continuing plan of the federal authorities to introduce concrete roads will increase the value of cement to N9, 000 per bag from the present value of N5, 000.

It additionally referred to as on the present administration to completely handle the perennial cement value hike drawback by facilitating bigger participation within the cement business, noting that Nigerians don’t have any enterprise shopping for cement for greater than N5, 600 per bag.

The affiliation, in an announcement collectively signed by the Nationwide Chairman, Prince David Iweta and Nationwide Secretary Chief Reagan Ufomba, on Sunday, recommended the works Minister’s place on cement-made roads however warned of dire penalties, if the provision finish is just not addressed correctly.

As an answer, the cement producers urged the federal government to put extra emphasis on street design that permits each cement know-how and asphalt pavement to run concurrently and supply ample time for a clean transition that permits contractors to put money into commensurate and requisite gear and retooling.

The assertion learn, “Our findings from numerous elements of the nation present that cement sells for as excessive as N6000 per bag within the wet season. Our prediction is that it’ll promote for over N9,000 per bag within the dry season, particularly with the pronouncement of the Honourable Minister of Works on cement know-how and the marching order on housing by Mr President if the federal government doesn’t take proactive steps.

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“Whereas we commend the Honourable Minister’s place on cement-made roads, we warn of the dire penalties if the provision finish is just not correctly addressed. In truth, it will quantity to dereliction of obligation to not intervene. And the time is now. To do in any other case is to proceed in a worsening pipe dream that costs would immediately drop on this important enter that can proceed to empty the purse of Nigerians, render them homeless, encourage chaos between demand and provide, and worsen the infrastructure deficit it units out to remedy, and result in an unprecedented value hike.

“We additionally name on the Honourable Minister of Works to put extra emphasis on the design standards of roads that permit each cement know-how and Asphalt pavement to run concurrently, in flip, will present ample time for a clean transition that permits contractors to put money into commensurate and requisite gear and retooling. We should additionally as a nation regulate static and dynamic load site visitors by introducing weighbridges at entry factors on our highways. Working in sync with contractors, and allied Ministries of Commerce and Funding, Transport, Atmosphere and Finance on lifelike coverage on cement is most fascinating at this essential time.”

The affiliation additional requested the federal government to conclude the backward integration coverage of the late Yar’adua administration that was already bringing availability and affordability of cement within the nation.p

It added, “There was a lot touch upon cement and cement pricing of late. What our nation wants is cement that’s obtainable and inexpensive. And this can’t be achieved by mere needs, defective insurance policies and programmes, with out breaking the chain of monopoly and favouritisms. Nigerians are uninterested in ready for a downturn within the value of cement and for first rate and inexpensive housing.

“We name on the Tinubu authorities to completely resolve this perennial cement value hike drawback by increasing participation within the sector with firms who’ve verifiable proof of native funding, together with greenfield licenses and quarrying. As a matter of reality, we name on the federal government to extra particularly conclude the backward integration coverage of the late Yar’adua administration which was already bearing availability and affordability fruits.

“As patriots, it’s our view that the federal government reintroduces backward integration coverage and the conclusion of previous ones. Consequently, the federal government can’t be seen to approbate and reprobate by deregulating problems with petroleum merchandise and international alternate on one hand and regulating on pricing of cement, important items and providers on one other. There’s a want for coverage harmonisation and convergence between fiscal and financial insurance policies.

“Lastly, we name on the federal government to urgently intervene within the international alternate market, intervene in restructuring dangerous loans of producers, and evaluate palliative modules. The cry for elusive FDI shall be drastically decreased if all manufacturing issues are revived. The federal government should be decisive within the type of financial insurance policies it intends to foist on the individuals,” the assertion concluded.

Reacting to the information, a contractor Tosin Adedapo informed Economic Confidential that ” the value improve will make it difficult for lots of people to afford the cement, in addition to the property contractors who will discover it harder to afford properties”.

In the identical vein, Mike John, added that if the hike persist, “we are going to find yourself having extra basis of buildings which are unstructured which is able to result in extra collapse of buildings, inflicting lot of lives and properties. As an example, in my location, about 3 constructing collapsed of latest because of poor building and administration of cement”.

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