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FG summons Dangote, BUA, Lafarge, others over rising cement prices

The Federal Government says that it has called for an urgent meeting with cement manufacturers over the escalating cost of the product in recent times.

The Minister of Works, Dave Umahi, who summoned the meeting, said that government will look into the challenges faced by these cement manufacturers as well as the disparity between ex-factory price and market price which is huge.

According to a statement by the Media Adviser to the Minister, Orji Uchenna Orji, the government is worried by the rising cost of cement despite huge patronage by road and housing contractors to these cement manufacturers.

Some of the cement manufacturers summoned by the Federal Government for the meeting include Dangote, BUA, Lafarge and others.

What the Minister is saying

According to Orji, the Minister was quoted as saying,

  • Worried by the escalating cost of cement despite huge patronage by road and housing contractors to cement manufacturers, the Honourable Minister of Works, His Excellency Sen Engr Nweze David Umahi CON, has summoned an urgent meeting of all cement manufacturers in Nigeria.’’

Orji quoted his principal as saying that the disparity between ex-factory price and market price is huge.

  • Umahi said, “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.”

What you should know

  • There had been reports that the price of a bag of cement has been between N8,000 and N10,000 from a price of between N4,000 and N5,000 a few weeks ago.
  • There had been even further reports that the price of this product has surged to between N10,000 and N15,000 per bag in Abuja in the face of current economic crisis in the country.
  • Meanwhile, Minister of Housing and Urban Development, Arc. Musa Dangiwa, had a few days ago decried the astronomical rise in the price of cement and other building materials across the country.
  • He said the price hike was unacceptable and insisted the fluctuation in the exchange rate of the dollar could not be blamed for the present scenario in that sector.

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