Tinubu Summons Dangote, BUA, Over Escalating Cement Prices

The Nigerian government has taken decisive action in response to the soaring retail prices of cement, summoning all cement manufacturers in the country to a crucial meeting with the Minister of Works, David Umahi. This move comes amidst mounting concerns over the escalating costs of the essential construction material, as revealed in a statement by the Special Adviser to the Minister, Edward Uchenna Orji, on Saturday.

Reports indicate that cement prices have surged by as much as 30%, prompting urgent intervention from the government. Despite Nigeria’s status as one of the largest producers of cement in Africa, market prices have continued to climb, exacerbated by high inflation in the building materials sector this year.

In Kubwa, Bwari area of the Federal Capital Territory, the price of a 50-kilogram bag of Dangote cement has skyrocketed to between N8,600 and N9,600, while BUA cement is being sold for between N8,500 and N9,500. This sharp increase has placed significant strain on consumers and raised questions about the factors driving the price surge.

Concerns have been raised over manufacturers’ decision to raise depot prices, contributing to the widening gap between ex-factory prices and retail prices. Minister Umahi expressed his apprehension over the situation, particularly considering the substantial patronage of cement manufacturers by road and housing contractors.

In light of these developments, an urgent meeting has been scheduled at the Federal Ministry of Works, Mabushi, Abuja, where representatives from Dangote Plc, BUA Plc, Larfarge, and other manufacturers will be in attendance. Minister Umahi emphasized the need to address the disparity between production costs and market prices, emphasizing the importance of finding common ground to resolve the issue and ensure stability in the cement market.