The Federal Government and major cement manufacturers have pegged the price of 50kg bag of cement at between ₦7,000 and ₦8,000 depending on the location nationwide.
Sen. David Umahi made this known to newsmen after a protracted meeting with major cement manufacturers in the country on Monday in Abuja.
The News Agency of Nigeria (NAN) reports that the Cement Manufacturers agreed to sell a 50kg bag of cement at a retail price of between ₦7,000 and ₦8,000, depending on the location.
However, the manufacturers stated that the price drop from the current market price would depend on the fulfilment of certain government interventions to ameliorate critical challenges faced in the industry.
The meeting was against the backdrop of the astronomical increase in the price of the commodity to about ₦13,000 in several retail stores in the Federal Capital Territory, Enugu and other parts of the country.
The meeting, called by President Bola Tinubu, to find a lasting solution to the unreasonable increase, had Umahi lamenting that the price was abnormal and detrimental to the economic prosperity sought after by the current administration.
Speaking, the minister said certain issues, including smuggling, bad roads, high energy costs, and the foreign exchange crisis, caused the high prices but stressed that manufacturers have expressed their readiness to willingly bring down the prices.
He said, “The cement manufacturers and the government have noted that the present high cost of cement in the market is abnormal in some locations nationwide.
“Ideally, they noted that cement price and retail price to a consumer should not cost more than between ₦7,000 and ₦8,000 per 50 kg bag of cement.
“Therefore, the government and the cement manufacturers, which is Dangote Plc, BUA Plc and Lafarge Plc, have agreed to peg their cement price nationwide between ₦7,000 and ₦8,000 per 50 kg bag of cement, depending on the location.
“Which means that this price depends on the location. Going forward, the government advised manufacturers to set up a price monitoring mechanism to ensure compliance with the prices that are set today.”
The meeting had in attendance the minister of works, Minister of Trade and Investment, Doris Uzoka-Anite, and representatives of Dangote Plc, BUA Plc and Lafarge Plc.