Nigeria to Import Cement? Government Responds to Price Hike Amidst Dispute.
Amidst a brewing price dispute, the Nigerian government has issued a stern warning, hinting at the possibility of opening borders to facilitate cement importation if local manufacturers fail to adjust prices accordingly.
During an emergency meeting held in Abuja with cement and building materials manufacturers, the Minister of Housing and Urban Development, Ahmed Dangiwa, voiced concerns over the reluctance of cement manufacturers to reduce prices despite accessible key input materials within the country.
Dangiwa emphasized that critical materials like limestone, clay, silica sand, and gypsum, essential for cement production, are abundantly available domestically and should not be subjected to dollar rates.
Citing the excuse of high gas prices as unjustifiable, the minister highlighted that gas, a primary raw material, is sourced locally, dismissing claims of increased mining equipment costs as outdated, considering equipment longevity.
While acknowledging the initial closure of borders to bolster local manufacturing, Dangiwa cautioned that a reversal in policy to allow mass importation could significantly impact local producers, leading to a drastic price plunge.
Expressing disappointment in the lack of uniformity among manufacturers, the minister lauded BUA Cement's willingness to lower prices below the agreed threshold, urging others to follow suit in fostering national interest during crises.
Responding to challenges raised by manufacturers, Rabiu Umar, Group Chief Commercial Officer of Dangote Cement, cited the high cost of gas and mining equipment as contributing factors to the surge in cement prices, emphasizing the widespread economic strain faced by all Nigerians.
As discussions continue, the government underscores the need for concerted efforts to address pricing discrepancies and ensure the stability of the cement market, leveraging local resources for sustainable production while safeguarding consumer interests.