In a significant development, the federal government has disclosed its intentions to potentially reopen the borders as part of efforts to stimulate the importation of essential commodities, including cement, should local manufacturers persist in maintaining high prices. This revelation emerged from statements made by the Minister of Housing and Development, Arc Ahmed Dangiwa, during a press briefing held in Abuja on Tuesday.
Highlighting the critical role of key input materials such as limestone, clay, silica sand, and gypsum in cement production, Dangiwa emphasized the need for these materials, predominantly sourced within Nigeria, to be insulated from foreign exchange rates. The border closure initially aimed at bolstering local manufacturers, but the minister cautioned that reopening the borders for mass importation could lead to a drastic reduction in cement prices, potentially impacting domestic producers.
Dangiwa urged local manufacturers to exhibit greater patriotism, citing the example of BUA Cement, which expressed willingness to lower prices below the agreed range of N7000 to N8000 per bag. He reiterated the government’s expectation for other manufacturers to follow suit, emphasizing the collective responsibility to navigate challenges and foster positive change.
Responding to concerns raised regarding gas prices and the cost of mining equipment, Dangiwa underscored the need for a comprehensive assessment of the situation. He acknowledged the challenges faced by industries but challenged assertions that high production costs were solely attributable to external factors such as gas prices and currency fluctuations.
Citing the government’s intervention to curtail cement imports as a measure to bolster local production and stimulate economic growth, Dangiwa cautioned against overreliance on mass importation, which could jeopardize both market stability and employment opportunities.
In conclusion, the minister underscored the government’s commitment to fostering an enabling environment for economic prosperity while urging stakeholders to collaborate in addressing challenges and advancing national interests.
