President Bola Tinubu has directed cement manufacturing companies in Nigeria to reverse the recent hike in the price of cement.
This was disclosed by the Minister of Works, Senator David Umahi, on Thursday, February 29, 2024, shortly after inspecting BUA cement factory in Sokoto State.
According to the Minister, the new presidential order is mandating all cement manufacturing companies to maintain the previous price of the commodity to ease the economic hardships Nigerians are experiencing.
He said, “On the issue of pricing, I can authoritatively say that they can still do better in line with their discussion with Mr. President.”
“Mr President insisted that they go back to the status quo as far as this cement price is concerned for the common man.”
“I want to encourage them to abide by the directive of Mr. President so that we can achieve massive housing programme and the renewed hope agenda of concrete roads by the President,” he said.
He continued: “When the chairman of the company visited Mr President last week, he assured that the 5th line will soon commence operation and with my visit here, I can confirm the 5th line, though waiting to be commissioned has already commenced operation.”
He however commended the management of the company for ensuring cleanliness within the entire premises of the company.
Accompanied by the Senate committee chairman on housing, Senator Aminu Tambuwal, the Minister said the federal government was embarking on 372 kilometres of road, dual carriageway from Zaria to Sokoto State.
“I am here to see things for myself, as you are aware, the federal government is currently embarking on 372 dual kilometers of road of which the first phase will be done with Asphalt, while the step down will be done with concrete.
“If you calculate the 372 kilometers, because it is dual carriage way into two will give us total of 744 kilometers.
“The second 372 kilometers will be conducted with pure concrete in line with the renewed hope agenda of Mr President.”
A market survey done earlier this month revealed that cement was sold between N8,500 to N9,200 nationwide.
In Ibadan, Oyo State capital, the price is N9000. In Sokoto, BUA cement is sold for N8,650 and Dangote is N9200.
In Ilorin, the price of BUA cement is N8,700 and Dangote is N9,000. Other market surveys pegged the price of the product as high as N12,000.
It was also reported last week that cement manufacturers spelt out the conditions that the Nigerian government must fulfil before reducing a 50kg bag of cement to N7,000 and N8,000 at a retail price.
The manufacturers claimed that the price drop from the current market price would depend on the fulfilment of certain government interventions to ameliorate critical challenges faced in the industry.
Reacting, Umahi decried the present price , claiming that it was abnormal and destructive to the economic development envisioned by the current administration.
The minister added that various challenges, such as smuggling, terrible roads, high energy costs, and the Forex crisis, contributed to the high pricing, but emphasised that manufacturers have shown their willingness to reduce prices in the future.
Tambuwal, on his part, emphasised the importance of cement production in the housing sector, praising the collaboration between the government and BUA Cement.
“I believe this partnership will greatly support the Federal Government’s initiative to provide affordable housing, addressing the significant housing gap in the country,” he said.
SaharaReporters
