The Cement Producers Association of Nigeria has issued a warning that the price of cement could surge from ₦5,000 to ₦9,000, News About Nigeria reports
They explained that this would be the case due to the Federal Government’s plan to introduce concrete roads across the country.
In a joint statement signed by the association’s National Chairman, Prince David Iweta, and National Secretary, Chief Reagan Ufomba, the group praised the Minister of Works, David Umahi, for advocating the use of cement in road construction.
However, they cautioned that unless the supply chain is adequately addressed, Nigerians’ hopes of reduced cement prices would be in vain.
The association proposed a solution, suggesting that the government should prioritize road designs that allow for the simultaneous use of both cement technology and asphalt pavement.
The statement noted the current cement price situation, stating, “Our findings from various parts of the country show that cement sells for as high as ₦6,000 per bag in the rainy season.
“Our prediction is that it will sell for over ₦9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr. President if the government does not take proactive steps,” the statement added.
While acknowledging the minister’s support for cement-based roads, the association emphasized the need for immediate intervention to address the supply chain issues.
They stressed that failure to do so would lead to an unprecedented price hike and worsen the housing and infrastructure challenges the government aims to resolve.
The association further called on the Minister of Works to prioritize road designs that allow for both cement technology and asphalt pavement, to ensure a smooth transition for contractors to invest in the necessary equipment and retooling.
They also suggested regulating traffic loads with weighbridges at highway access points.
Additionally, the association urged the government to finalise the backward integration policy initiated during the late Yar’adua administration. They argued that cement availability and affordability could only be achieved by breaking the monopoly and favouritism in the sector.
The cement manufacturers called upon President Bola Tinubu’s administration to address the ongoing issue of cement price hikes by expanding participation in the sector, encouraging companies with verifiable evidence of local investment, including greenfield licenses and quarrying.
This, they believe, is crucial to achieving lasting solutions to the cement price challenge in Nigeria.
