Nigeria Why Cement Prices Could Skyrocket to N9,000 per Bag - Manufacturers

The Cement Producers Association of Nigeria has expressed concern that the federal government's plan to introduce concrete roads may lead to a significant increase in cement prices, potentially reaching N9,000 per bag, up from the current N5,000. In a joint statement by the National Chairman, Prince David Iweta, and National Secretary, Chief Reagan Ufomba, the association urged the government to address the issue of cement price hikes by promoting greater participation in the cement industry.

While the association commended the Works Minister's support for cement-made roads, it warned of dire consequences if the supply side of the cement industry was not properly managed. The association recommended an approach that allowed both cement technology and asphalt pavement to coexist on road designs and encouraged a smooth transition for contractors to invest in the necessary equipment and retooling.

Additionally, the association called on the government to conclude the backward integration policy initiated during the late Yar'adua administration, which was aimed at ensuring the availability and affordability of cement in the country. It emphasized the importance of harmonizing fiscal and monetary policies, intervening in the foreign exchange market, restructuring bad loans of manufacturers, and reviewing palliative modules to support manufacturing concerns.

The association's concern reflects potential challenges in balancing infrastructure development with the cost implications for essential construction materials like cement.