The Cement Producers Association of Nigeria has warned the federal government that the cost of a bag of cement might increase to N9,000 if the proposal goes on.
While the manufacturers agreed that the concept was sound in theory, they recommended proceeding with caution until the issues around cement availability could be resolved.
It is important to permanently address the perennial cement price hike problem by facilitating larger participation in the cement industry, the association said in a statement signed by Prince David Iweta, the National Chairman, and Chief Reagan Ufomba, the National Secretary, noting that Nigerians have no business buying cement for more than N5,600 per bag.
Cement manufacturers requested that the government provide them more time for a seamless transition, during which they could make necessary and appropriate investments in new machinery and tools.
The group also urged the government to wrap off the backward integration program begun by the administration of the late Umaru Musa Yar’adua, which it said had increased the accessibility and reduced the cost of cement in the nation.
Our country needs cheap, readily available cement. And breaking the chain of monopoly and favoritism is essential if this is to be accomplished by mere desires, flawed plans and initiatives. Nigerians have had it with waiting for the price of cement to drop and for inexpensive, quality houses to become available to them.
We urge the Tinubu administration to end the cycle of cement price increases once and for all by encouraging more firms to enter the market with proof of substantial local investment in the form of greenfield licensing and quarries. In fact, we urge the government to formally end the backward integration strategy initiated by the Yar’adua administration, which has shown positive results in terms of both availability and affordability.
As nationalists, we believe the government is reversing progress by instituting new integration policies and ending others. As a result, the government can’t have it both ways by controlling the cost of cement and other necessities while also deregulating matters related to petroleum products and foreign exchange. Fiscal and monetary policies should be harmonized and converged upon.
Finally, we recommend government action, urging them to restructure problematic loans of firms, intervene in the foreign currency market, and conduct a review of palliative modules. If factories are brought back to life, there will be much less of a need to seek out illusive FDI. The government must be clear about the economic policies it plans to impose on the people, the statement continued.
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