The Federal Government has issued a stern warning, indicating its readiness to open the borders for cement importation should local manufacturers fail to heed calls for a reduction in the commodity’s price within Nigeria.
This ultimatum, delivered by the Minister of Housing and Urban Development, Ahmed Dangiwa, underscores the government’s commitment to addressing the escalating concerns surrounding cement affordability.
Speaking at an emergency meeting convened with cement and building materials manufacturers in Abuja, Dangiwa emphasized the importance of utilizing locally sourced key input materials for cement production.
He stressed that commodities such as limestone, clay, silica sand, and gypsum, abundantly available within Nigeria’s borders, should not be subject to dollar-based pricing.
In debunking the rationale behind manufacturers’ cited reasons for the high cement prices, Dangiwa challenged assertions regarding the cost of gas and mining equipment.
He pointed out that gas, a crucial raw material for production, is domestically produced, thus negating the justification for its inflated pricing.
Similarly, he refuted claims regarding the exorbitant costs of mining equipment, highlighting the longevity of such investments and questioning their impact on production costs.
Highlighting the initial rationale behind the border closure to cement imports – aimed at bolstering local manufacturing – Dangiwa cautioned against the repercussions of reverting to mass importation.
He cautioned that such a move would precipitate a drastic reduction in cement prices, adversely affecting local manufacturers.
Calling upon manufacturers to demonstrate patriotism and a sense of responsibility, Dangiwa cited examples of companies, such as BUA Cement, willing to comply with pricing adjustments.
He urged others to follow suit, emphasizing the need for collective action in times of crisis to effect positive change.
Echoing sentiments shared during the meeting, Rabiu Umar, Group Chief Commercial Officer of Dangote Cement, acknowledged the challenges faced by the industry.
However, he underscored the complexities involved in cement production, citing the necessity of forex-related items despite the availability of some raw materials locally.
As discussions continue between the government and industry stakeholders, the looming specter of opening borders to cement imports serves as a stark reminder of the urgent need for resolution.
Balancing the interests of consumers, manufacturers, and the broader economy remains paramount as efforts to stabilize cement prices persist amidst prevailing economic challenges.
