The Federal Government has warned that if Nigerian cement manufacturers do not reduce the price of cement, it may open the borders to allow cement importation. Read full article
Ahmed Dangiwa, the Minister of Housing and Urban Development, conveyed this threat during an emergency meeting with cement and building materials manufacturers in Abuja.
He emphasized that key input materials like limestone, clay, silica sand, and gypsum, which are sourced locally, should not be priced in dollars.
Dangiwa argued against the manufacturers' reasons for high prices, noting that gas, a crucial raw material, is domestically available, and mining equipment costs are amortized over years.
The minister underscored that the border closure was intended to support local manufacturers, but if importation resumes, cement prices would plummet, severely impacting local producers.
He urged manufacturers to prioritize patriotism, citing BUA Cement's willingness to lower prices below the agreed range of ₦7000-₦8000.
Rabiu Umar, Group Chief Commercial Officer of Dangote Cement, attributed the price hike to the high cost of gas and mining equipment, emphasizing the significant forex dependence in cement production despite some local raw materials availability.