NEWS
FG threatens to open borders if cement price refuses to drop down
The Federal government has responded to the constant increase in the price of cement in the country.
The government considered opening the borders to lower the price of the product.
Ahmed Dangiwa, the Minister of Housing and Urban Development, issued a warning on Tuesday, stating that key components of cement manufacturing are sourced locally and the recent price hike is deemed unreasonable and unacceptable.
He warned that if cement manufacturers did not lower their prices, the government might allow the importation of cement through open borders.
He stated that the primary materials for cement production, including limestone, clay, silica sand, and gypsum, are readily sourced within Nigeria. Therefore, the price of cement should not be influenced by the dollar exchange rate.
Dangiwa revealed this information in Abuja during an urgent meeting with cement and building materials manufacturers.
He argued that the cost of gas and mining equipment should not be used as excuses by manufacturers. Gas is a domestic raw material, and the mining equipment has been in use for many years, not purchased daily.
The Minister urged manufacturers to show more patriotism. He mentioned BUA cement as an example, stating that they were willing to lower their prices below the agreed N7000 to N8000 range. He encouraged other manufacturers to follow suit.
In his words, “The challenges you speak of, many countries are facing the same challenges and some even worse than that but as patriotic citizens, we have to rally around whenever there is a crisis to change the situation.
“The gas price you spoke of, we know that we produce gas in the country the only thing you can say is that maybe it is not enough. Even if you say about 50 percent of your production cost is spent on gas prices, we still produce gas in Nigeria it’s just that some of the manufacturers take advantage of the situation. As for the mining equipment that you mentioned, you buy equipment, and it takes years, and you are still using it.
“The time you bought it maybe it was at a lower price but because now the dollar is high you are using it as an excuse. Honestly, we have to sit down and look at this critically. The demand and supply should be good for you because the government stopped the importation of cement, they stopped the importation in order to empower you to produce more.
“Otherwise if the government opens the border for mass importation of cement, the price would crash but you would have no business to do and at the same time the employment generation would go down. So these are the kinds of things you have to look at, the efforts of government in ensuring things go well.”
