Cement manufactures list conditions to crash exorbitant price in 30 days

…Insists hike not caused by foreign exchange

By Ezurike Ugochukwu

The Cement Producers’ Association of Nigeria (CEPAN) has stated they are ready to assist the federal government in making sure the price of cement is reduced in the country within 30 days.

CEPAN speaking through its national chairman, David Iweta, on Sunday said the supply-demand disparities being experienced which has caused the cost to rise to as much as N13,000 could be bridged if they are brought on board as part of efforts to bring a lasting solution.

Iweta argued that the current hike in prices is a result of insufficient products, that the current demand for cement far outweighs the supply. He added that the hike in price is not a result of foreign exchange issues as been touted in some quarters.

He regretted that the association had sounded the warning over the present predicament, implications and likely consequences of placing the cement needs of over 200 million people in the hands of a few selected persons.

The primary cause of the scarcity/ price hike is nothing but insufficient production of the product by the few persons.

The CEPAN boss said, “What we are seeing today is a case of demand clearly outweighing supply, and we in the association knew it would come to this because there is no way the few players in the industry can meet the cement needs of Nigerians.

“If you remember, the association had earlier warned, even when the commodity was still as low as N3,000 that in the nearest future, it would sell for as high as N9,000 if certain steps were not taken. Why we were saying that then was to ginger the government to take action and avert this mess that we are all in today,” he said.
The body however advised President Bola Tinubu to revisit the late President Umar Yar’Adua’s Backward Integration Policy, which licensed some other players in the industry to import cement but was scuttled by those he called cabals in the sector as that is a clear way out of this national embarrassment.

“In a bid to address the supply gap then, the late President Yar’Adua had given import license to some manufacturers in the sector to import the commodity for a certain period of time before developing the financial muscles to be able to produce here. This was meant to bridge the noticeable supply gap in the sector then. But this was scuttled by the cabals in the sector then.

“The way out in the immediate for the Federal Government is to revisit that policy, otherwise the price will keep rising since it is obvious that these few players cannot cope with the demands of Nigerians,” he added.
Notwithstanding the rebuff it received in the hands of previous administration particularly the Minister of Industry, Trade and Investment and the Presidency to make its position known on the issue in the past, CEPAN President said they remain undaunted.

It will be recalled that the Minister of Works, David Umahi, had through his Special Adviser (Media), Orji Uchenna Orji, last Saturday summoned a meeting of all prominent cement manufacturers for this Monday February 19, 2024 over the rising cost of cement in Abuja.

He expressed deep concern that the cost of the product was rising at an astronomical rate, explained that those invited are: Dangote Plc, BUA Plc, Lafarge, and others.

Stating that though the manufacturers have their challenges that would be look into, their findings however revealed that the disparity between ex-factory price and the market price is currently wide.