The federal government has threatened the possibility of opening the borders to cement importation if Nigerian cement manufacturers refuse to play ball on cement reduction in the country.
The Minister of Housing and Urban Development, Ahmed Dangiwa, who issued the threat on Tuesday, said key input materials for cement production such as limestone, clay, silica sand, and gypsum, sourced within the nation’s borders, should not be dollar-rated.
Dangiwa made this known on Tuesday, February 20, in Abuja at an emergency meeting held with cement and building materials manufacturers.
READ ALSO: Nigerians Heave Sigh Of Relief As Cement Manufacturers Move To Crash Price Of Product To N7,000-N8,000
He stated that the justification provided by manufacturers regarding the gas prices was unfounded, as gas is a domestically sourced raw material.
Moreover, he dismissed the argument about increased costs for mining equipment, emphasizing that manufacturers typically utilize equipment over long periods and don’t make daily purchases.
Regarding cement importation, the minister highlighted the government’s decision to close the border in support of local manufacturers. However, he cautioned that reopening the border for extensive importation would drastically reduce cement prices, negatively impacting domestic producers.
Encouraging a sense of patriotism among manufacturers, he pointed out that BUA Cement had demonstrated a willingness to lower prices, even below the previously agreed range of N7000 to N8000. He urged other manufacturers to follow suit.
“The challenges you speak of, many countries are facing the same challenges and some even worse than that but as patriotic citizens, we have to rally around whenever there is a crisis to change the situation.
“The gas price you spoke of, we know that we produce gas in the country. The only thing you can say is that maybe it is not enough.
“Even if you say about 50 percent of your production cost is spent on gas prices, we still produce gas in Nigeria. It’s just that some of the manufacturers take advantage of the situation. As for the mining equipment that you mentioned, you buy equipment and it takes years and you are still using it,” he said.
