David Umahi, minister of works, has summoned cement manufacturers over the rising cost of the product.

The price of cement has been oscillating between N8,000 and N10,000 per bag from about N4,000 a few weeks ago.

Dangote, BUA, and Lafarge are some of the cement manufacturers summoned by the works ministry.

Orji Uchenna Orji, media aide to the minister, said: “Worried by the escalating cost of cement despite huge patronage by road and housing contractors to cement manufacturers, the Honourable Minister of Works, His Excellency Sen Engr Nweze David Umahi CON, has summoned an urgent meeting of all cement manufacturers in Nigeria”.


Orji quoted his principal as saying that the disparity between ex-factory price and market price is huge.

“It is common knowledge that the manufacturers have their challenges, which we shall look into, but from our findings, the disparity between ex-factory price and the market price is wide,” Umahi was quoted as saying.

“We therefore need to look into the situation and other issues with a view to finding a common front.”

insidelife22:
Allow other investors in the cement industry for competitions, and watch demand and supply determine the cost.

alsudan:
Ebola and his people should first summon themselves over the fallen Naira

123yes:
This APC government have no sense. You devalue you currency to almost #1770 to a,$ollar They have to increase their prices so as to cover their cost of production. That is common economics. What did u want them to do? to produce and sale at a loss?.

insidelife22:
Allow other investors in the cement industry for competitions, and watch demand and supply determine the cost.

matify83:
The ministry of works will be at the receiving end because all contractors handling federal projects will come back for contract variation due to the rising cost of inputs.

Umahi once threatened to import cement if they don't bring down the price of local cement. That was when BUA decided to announce his ex-factory price of 3500 which did not see daylight.

With the high costs of running those factories and vehicles, I presume the minister is only putting the chart before the horse except he wants them to fold up like several multinationals who wound up and left due to our harsh operating climate.

opera1:
I don't just understand what lead to the increase coz we have all the raw materials here. It's now 12k per bag in some places.

100 bags is ₦1m. How poor man wan take get house like this?

123yes:
This APC government have no sense. You devalue you currency to almost #1770 to a,$ollar They have to increase their prices so as to cover their cost of production. That is common economics. What did u want them to do? to produce and sale at a loss?.

chicfarmer:


The government needs to read the riot act to these cement boys. If importing cement is far cheaper than locally producing it, then the government may well call their bluff if they want to shut down. Compare the millions of artisans who would be left jobless because of the prohibitive prices of cement to the few thousands these cement manufacturers employ. Do the maths and see which is better.

Of course we don't want factories to shut down but if they become cogs in the nation's wheel of progress then they may pay the price.
I can assure you that the construction industry is right now comatose because of this cement price crisis. Think of the Engineers, plumbers, painters, carpenters, iron benders, aluminium artisans, unskilled labourers etc who are stranded at home with no means of income. This cement issue deserves the strongest direct response from the government without caring whose ox is gored!

Ezewuzie01:
Why can't Ibeto or any other wealthy Igbo or group pool resources together to revitalize the Nkalagu cement to free Igbos from the Fulani cement mafia? Igbos like coming to social media to complain about everything and blame other tribes when we haven't done our homework.

peekspot:

https://www.thecable.ng/fg-summons-dangote-bua-over-rising-cost-of-cement/amp