Manufacturers of cement in Nigeria have agreed to sell a 50kg bag of cement between N7,000 and N8,000 depending on the location within Nigeria.
The Minister of Works, David Umahi, revealed this after a meeting with leading manufacturers on Monday in Abuja.
However, the manufacturers made it clear that the price drop from the current market price, would depend on the fulfilment of certain government interventions.
The meeting was against the backdrop of the ballooning price of the commodity to approximately N13,000 in several retail stores in the Federal Capital Territory, and Enugu, indicating the impact of inflation within the country
The price hike was attributed to the increase in wholesalers reselling to retailers and the escalating inflation rates.
But at the meeting directed by President Bola Tinubu, Umahi lamented the current rate stating that it was abnormal and detrimental to economic prosperity sought after by the current administration.
Reading the communique, the minister said certain issues including smuggling, bad roads, high energy costs, and the Forex crisis caused the high prices but stressed that manufacturers have expressed their readiness to be willing to bring down the prices in the future.
He said, “The cement manufacturer has noted to the government that the present high cost of cement in the market is very much abnormal in some locations nationwide. Ideally, they noted that cement price, and retail price to a consumer should not cost more than between N7,000 to N8,000 per 50 kg bag of cement.
“Therefore, the government and the cement manufacturers, which are Dangote Plc, BUA Plc and Lafarge Plc have agreed to have their cement price nationwide between N7,000 to N8,000 naira per 50 kg pack of cement, depending on the locations, which means that this price depends on the locations.
“Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today.”