Cement Producers Association Warns: Cement Price To Hit N9000

The Cement Producers Association of Nigeria has issued a warning about the potential consequences of the federal government’s plan to introduce concrete roads, suggesting it could raise cement prices to N9,000 per bag from the current N5,000. The association has called on the government to address the recurring issue of cement price hikes by promoting greater participation in the cement industry and ensuring that Nigerians do not pay more than N5,600 per bag.

In a statement jointly signed by the National Chairman, Prince David Iweta, and National Secretary, Chief Reagan Ufomba, the association acknowledged the benefits of cement-made roads but expressed concerns about the supply end of the equation. To mitigate potential problems, the association proposed an emphasis on road designs that allow for both cement technology and asphalt pavement to be used concurrently, facilitating a smoother transition for contractors to invest in the necessary equipment.

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The statement also highlighted the need for the government to conclude the backward integration policy initiated during the late Yar’adua administration, which aimed to enhance cement availability and affordability in Nigeria. The association emphasized the importance of expanding participation in the cement sector, concluding old policies, and harmonizing fiscal and monetary policies to ensure consistency in economic decisions.

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In conclusion, the association urged the government to intervene in the foreign exchange market, restructure bad loans of manufacturers, and review palliative measures to revive manufacturing concerns. By doing so, the government can work towards reducing the need for foreign direct investment (FDI) and promoting economic stability in the country.

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