5 takeaways from FG, cement manufacturers meeting on price

Though the meeting failed to meet the expectations of Nigerians that cement prices should come down to between N5,000 and N5,300, it came off with little or no reassuring conclusions.

The meeting also failed to show a sense of urgency in terms of implementing or addressing identified challenges and solutions by agreeing to reconvene in 30 days instead of say 7–14 days.

The takeaways from the meeting which Nigerians would like to know include:

1. Identified producers’ challenges: The meeting identified a number of challenges that the manufacturers face in the course of producing and distributing the product. These are the cost of gas, high import duty on spare parts, bad road network, high foreign exchange, and smuggling of cement to neighbouring nations.

2. FG’s commitment: The government was on the same page with the manufacturers on the identified challenges and so committed to addressing them.

The Ministry of Industry, Trade and Investment is to seek some remedies from The President on the cost of gas and import duties.

The Ministry of Industry, Trade and Investment has to deepen the already started engagement with the National Security Adviser on how to stop the smuggling of the products to other countries.

On its part, the Federal Ministry of Works is to give more attention to fixing the roads, especially around the locations of the manufacturers.

3. Collective agreement on price: Both the government and the manufacturers agreed that the current high price of cement is abnormal in some locations nationwide.

This informed the fixing of the retail price at not more than ₦7,000.00 to ₦8,000.00/ 50kg bag of cement.

The three major manufacturers: Dangote BUA and Lafarge Africa have, therefore, agreed that cement cost will not be more than between ₦7,000.00 and ₦8,000.00/50kg bag depending on location.

4. Price monitoring: Manufacturers are to set up a price monitoring mechanism to ensure compliance, and they are to sanction any of their distributors or retailers found wanting.

5. Price to drop when… It is the expectation of the government that the agreed price should drop after securing the government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.