The Federal Government has issued a stern warning to cement manufacturers, stating that it will open the borders to enable cement importation if local producers refuse to reduce the price of the commodity in the country.
The Minister of Housing and Urban Development, Ahmed Dangiwa, delivered the ultimatum during an emergency meeting held with cement and building materials manufacturers in Abuja on Tuesday.
Dangiwa emphasized that key input materials for cement production, such as limestone, clay, silica sand, and gypsum, which are sourced within the nation’s borders, should not be priced in dollars.
He dismissed the excuse of high gas prices, noting that gas is a raw material abundantly available within the country. Additionally, Dangiwa refuted claims of increased costs due to mining equipment, pointing out that equipment purchased by manufacturers has been in use for decades.
The minister reminded manufacturers that the border closure was intended to support local producers. However, he warned that if prices remain high, the government would resort to opening the border for mass importation, resulting in a crash in cement prices and adversely affecting local manufacturers.
Dangiwa urged manufacturers to prioritize patriotism, highlighting that BUA Cement had expressed willingness to reduce prices below the agreed N7000 to N8000 range.
Addressing concerns raised by the Group Chief Commercial Officer of Dangote Cement, Rabiu Umar, about the high cost of gas and mining equipment, Dangiwa reiterated that despite challenges, Nigeria produces gas locally and equipment purchases are long-term investments.
The government’s stance underscores its commitment to ensuring affordable cement prices for Nigerians and promoting competitiveness in the local manufacturing sector.
