The Cement Producers Association of Nigeria has issued a warning that the federal government’s plan to introduce concrete roads will lead to a significant increase in the price of cement, raising it from the current N5,000 per bag to approximately N9,000 per bag.
The association has also called upon the government to address the recurring problem of cement price hikes by encouraging greater participation in the cement industry, emphasizing that Nigerians should not have to pay more than N5,600 per bag.
In a joint statement signed by the National Chairman, Prince David Iweta, and National Secretary, Chief Reagan Ufomba, the association commended the Minister of Works for advocating cement-made roads but cautioned of potential consequences if the supply chain issues are not effectively addressed.
As a proposed solution, the cement producers have urged the government to focus on road designs that allow for both cement technology and asphalt pavement simultaneously. They suggest providing ample time for a smooth transition that enables contractors to invest in the necessary equipment and retooling.
The statement explained, “Our findings from various parts of the country show that cement sells for as high as N6,000 per bag in the rainy season. Our prediction is that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr. President if the government does not take proactive steps.”
The association also called on the government to conclude the backward integration policy initiated during the late Yar’adua administration, which aimed to improve the availability and affordability of cement in the country.
In conclusion, the association urged the government to intervene in the foreign exchange market, restructure bad loans of manufacturers, and review palliative modules. They emphasized the need for decisive economic policies to support the manufacturing sector and reduce the reliance on foreign direct investment (FDI).