The Nigerian government has warned cement companies to lower prices or risk losing their monopoly, as it considers lifting the ban on cement imports. This move comes as a response to rising cement prices, which have put pressure on consumers and businesses alike.
The Minister of Housing and Urban Development, Ahmed Dangiwa, stated that the input materials used in cement production are all sourced domestically and should therefore not be subject to the effects of the dollar’s devaluation. As such, the government believes that there is no justifiable reason for the continued high prices of cement.
At an emergency meeting with cement and building materials manufacturers on Tuesday, February 20, Minister Dangiwa stated that the reasons given by manufacturers for high cement prices – increased gas prices and the cost of mining equipment – are not justifiable.
The minister explained that the decision to close the border to imported cement was made to help local manufacturers, but opening it again could lead to mass importation and a crash in domestic prices. This could have a devastating impact on local manufacturers, who are already struggling to compete with cheaper imported products.
The minister urged cement manufacturers to act more patriotically, and highlighted that BUA cement has shown a willingness to lower its prices below the N7000-8000 benchmark agreed upon by the manufacturers. The minister expressed surprise that other manufacturers have not shown the same willingness to lower prices, despite the significant impact this would have on consumers.
In response to the manufacturers’ complaints about challenges such as high production costs, Minister Dangiwa said that many countries are facing similar or even worse challenges, but it is the duty of patriotic citizens to come together in times of crisis to overcome them. He emphasized the importance of unity and cooperation to overcome the current economic difficulties.