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JUST IN: FG threatens to open of border for cement importation

Ademola Damilola by Ademola Damilola
February 20, 2024
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JUST IN: FG threatens to open of border for cement importation
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The federal government has issued a stern warning about the possibility of reopening the borders to cement imports if domestic cement manufacturers do not cooperate in reducing the price of cement in Nigeria. The Minister of Housing and Urban Development, Arc Ahmed Dangiwa, conveyed the government’s dissatisfaction with the recurrent and disproportionate increase in cement prices despite key production components being locally sourced.

During an emergency meeting with cement and building materials manufacturers, Dangiwa emphasized that critical input materials such as limestone, clay, silica sand, and gypsum are sourced within the country and should not be dollar-rated. He expressed concern over the escalating prices, citing the need for a fair pricing structure.

The minister rejected certain justifications given by manufacturers, including the cost of gas and mining equipment. Dangiwa argued that the price of gas, as a raw material abundant within Nigeria, should not be a factor, and the use of mining equipment purchased over the years should not be an excuse. He reminded manufacturers that the border had been closed to cement imports to support local production, and reopening it would significantly impact prices, affecting domestic manufacturers adversely.

Dangiwa urged manufacturers to prioritize patriotism, citing BUA Cement’s willingness to lower prices below the agreed industry rate. He called on other manufacturers to follow suit for the benefit of consumers and the industry.

Responding to the manufacturers’ concerns, the minister acknowledged macroeconomic challenges but stressed the need for collective efforts during crises. He challenged manufacturers to reassess their production costs, emphasizing that the government’s measures, such as closing the borders to cement imports, were intended to empower local producers.

In response to the situation, Dangiwa announced the formation of a committee comprising representatives from each cement manufacturer, the industry association, and the government. This committee would work on developing strategies to address the issue of high cement prices in the country.

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