How FG Summons Dangote, BUA, Others, Demands Reason for Cement Price Hike….details

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The Nigerian government has summoned all cement manufacturers in the country to a meeting with the Minister of Works, David Umahi, over escalating retailing prices of the product in the market.

This was disclosed in a statement by the Special Adviser to the Minister, Edward Uchenna Orji, on Saturday.

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SaharaReporters had reported on Friday that the costs of cement jumped as much as 30% as fresh increases in prices and associated products were implemented recently by distributors across the country.

Nigeria is one of the largest producers of cement on the continent, but the price of cement continues to rise, especially this year over the high inflation that impacted the building materials market.

In Kubwa, Bwari area of the Federal Capital Territory, a 50 kilograms bag of Dangote cement has surged to between N8,600 and N9,600, while BUA sells between N8500 and N9500.

“Dangote is N9600 while BUA goes for N9500 per bag”, a seller at Kubwa Phase 4 had told SaharaReporters on Friday.

The retailer complained that some manufacturers had increased their depot prices to a new high following the general hike in prices of things.

The statement said the minister was “worried by the escalating cost of cement despite huge patronage by road and housing contractors to cement manufacturers.”

Those invited to the urgent meeting include Dangote Plc, BUA Plc, Larfarge and the other manufacturers.

The meeting is scheduled to take place at the Federal Ministry of Works, Mabushi, Abuja.

The minister was quoted as saying that “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.

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

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