The Cement Producers Association of Nigeria—CMAN, has revealed that the price of cement may skyrocket from the current price of N5,000 to N9,000 per bag.
The association noted that the possible hike in price of cement was due to the ongoing plan by the federal government to introduce concrete roads.
It also urged the government to address the perennial cement price hike problem by facilitating larger participation in the cement industry and ensuring that Nigerians do not have to buy cement for more than N5,600 per bag.
This was contained in a joint statement signed by it’s national chairman, Prince David Iweta, and secretary Chief Reagan Ufomba, on Sunday.
Part of the statement reads, “Our findings from various parts of the country show that cement sells for as high as N6000 per bag in the rainy season. Our prediction is that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr President if the government does not take proactive steps.
“While we commend the Honourable Minister’s position on cement-made roads, we warn of the dire consequences if the supply end is not properly addressed. In fact, it would amount to dereliction of duty not to intervene. And the time is now.
“To do otherwise is to continue in a worsening pipe dream that prices would suddenly drop on this essential input that will continue to drain the purse of Nigerians, render them homeless, encourage chaos between demand and supply, and worsen the infrastructure deficit it sets out to cure, and lead to an unprecedented price hike.
“We also call on the Honourable Minister of Works to lay more emphasis on the design criteria of roads that allow both cement technology and Asphalt pavement to run concurrently, in turn, will provide ample time for a smooth transition that allows contractors to invest in commensurate and requisite equipment and retooling.
“We must also as a nation regulate static and dynamic load traffic by introducing weighbridges at access points on our highways. Working in sync with contractors, and allied Ministries of Trade and Investment, Transport, Environment and Finance on realistic policy on cement is most desirable at this critical time.”