Nigeria’s cement producers have been urged to lower the price of their product or face retaliation from the Federal Government, which has vowed to remove barriers to cement imports.
Dollar-rated materials should not be applied to essential inputs for cement manufacture, such as gypsum, limestone, clay, and silica sand that are obtained domestically, according to Minister of Housing and Urban Development Ahmed Dangiwa, who made the statement on Tuesday.
At an urgent gathering of cement and construction material makers in Abuja, Dangiwa delivered a speech.
He explained that since gas is a domestic raw element, the producers’ justification for its pricing was untenable.
He said that the excuse of a rise in mining equipment should be avoided because equipment acquired by manufacturers has been in use for decades and is not purchased daily.
To assist local producers, the minister announced that the border will be blocked to cement imports.
However, he stated that if the government decides to open the border to mass importation, cement prices will plummet, and local businesses will suffer greatly.
He said:
“The challenges you speak of, many countries are facing the same challenges and some even worse than that but as patriotic citizens, we have to rally around whenever there is a crisis to change the situation.
“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 percent 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.”
cc: Daily Post Ng
