The Federal Government, along with cement manufacturers like BUA, Dangote, and Lafarge, has established a price range of N7,000 to N8,000 for a 50-kg bag of cement in different parts of the country.
The price adjustment was announced by Senator David Umahi after a meeting with key players in the cement industry in Abuja on Monday.
Despite agreeing on the price reduction, manufacturers stressed that the decrease from current market rates depends on the government’s efforts to address major challenges in the sector.
This initiative, led by President Bola Tinubu, aims to address the increase in cement prices, which Senator Umahi criticized as excessive and harmful to the government’s economic growth goals.
The minister mentioned various reasons for the high costs, such as smuggling, bad roads, high energy prices, and foreign exchange problems.
He also mentioned that manufacturers are willing to lower prices if the government takes action to solve these issues.
He stated, “Ideally, they noted that cement price and retail price to a consumer should not cost more than between N7,000 and N8,000 per 50 kg bag of cement.
“Therefore, the government and the cement manufacturers, which is Dangote Plc, BUA Plc and Lafarge Plc, have agreed to peg their cement price nationwide between N7,000 and N8,000 per 50 kg bag of cement, depending on the location.
“Which means that this price depends on the location. Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today.”
Over the past few weeks, the price of a 50kg bag of cement has reached a record high of over N9,500 in various cities across the country. This increase is due to rising energy costs and other operational expenses.
