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Reasons we cannot sell cement below N7,000, by Dangote, Bua, Lafarge

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8 months ago

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Cement
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Nigerian Cement manufacturers have said a surge in their operating costs was responsible for the sudden increase in the prices of the commodity around the country.

They have however agreed to bring down the price of the product from between N9,000 to N15,000 to between N7,000 and N8,000 per 50kg depending on the location nationwide.

This development emerged after a meeting by the Minister of Works, David Umahiattended by his Industry, Trade and Investment counterpart, Doris Uzoka-Anite on Monday in Abuja with representatives of Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc.

 

After almost three hours of discussion, the Works Minister read the communique of the meeting where the cement manufacturers explained the reasons why the price could not be lower than N7,000 for the time being and why it went up astronomically in the first place.

The manufacturers noted that the challenges of the high cost of gas, import duties, bad road network and the prevailing high rate of foreign exchange against the naira are militating against an instant drop in the price of the commodity.

 

Kabir Rabiu, the Executive Director of BUA said the meeting was extensive but the manufacturers would abide by the agreement.

According to him, the manufacturers were helpless over the issue of the surging prices.

 

He said: “First our cost component of energy went from 39 percent to 60 percent because of gas

“The price of gas last year was 415, then to N715, today we are paying more than N1,500. All these issues were discussed and we gave our commitment.

 

“When our 6 million tonnes of cement is supplied to the market in the few weeks, definitely we will see a sharp drop in prices when that volume hits the market”.

He said the big disparity between demand and supply also played a major role in the price surge considering the season too.

 

According to him, some manufacturing plants have issues and cannot produce probably by choice or accident, which leads to a reduction in production.

“And being the highest period of cement demand in the country, the tendency that demand will outstrip supply will push the price up,” he added.

He also noted that smuggling across the border contributes to the scarcity of the commodity which added to the surge in price.

He said the commodity is much costlier in Cameroon, for instance, which makes Nigerian cement a target for cross-border smuggling to Cameroon and other neighbouring countries.

The representative of Dangote Cement Plc, the Group Managing Director/Chief Executive Officer,  Arvind Pathak, said notwithstanding that the core materials of the commodity are locally sourced, he said spare parts, among several other variables are subject to the mechanism of Import Duties and foreign exchange which makes it difficult for the manufacturers to disregard the prevailing economic indices.

 

Parts of the communique read by Umahi read:  “The government and the manufacturers noted that depending on the location, ideally, the price should not be more than N7,000 and N8,000 to get to the consumer per 50 kg bag of cement.

“The manufacturers, BUA Cement Plc, Dangote Cement Plc and Lafarge Africa Plc have agreed to have their cement price nationwide to between N7,000 and N8,000 per 50kg depending on the location.

“Between the Federal government and cement manufacturers to set up a price monitoring mechanism to ensure compliance for the price we have set today and manufacturers have accepted to sanction, on their own, any of their distributors or retailers found wanting.

 

“Government expects the agreed price to drop after securing government’s interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network.

“It was also agreed that the government will encourage the emergence of at least six cement manufacturers to augment the three existing companies.

 

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BREAKING NEWS: Apapa Port Command of the Nigeria Customs Service has announced a revenue collection of N1.6 trillion from January to September 2024.

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October 8, 2024

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The Apapa Port Command of the Nigeria Customs Service has announced a remarkable revenue collection of N1.6 trillion from January to September 2024. This achievement showcases the Command’s commitment to excellence and its significant contribution to the country’s economy.

Ekwutosblog reports, according to Comptroller Babatunde Olomu, the Customs Area Controller, the Command collected N1.227 trillion between January and July 2024, with July being its highest monthly collection of N201.8 billion.

This revenue surpasses the total revenue collected in 2023.

The Command’s success can be attributed to its effective implementation of the Comptroller General of Customs’ thrust of time release study to facilitate trade without delay.

Additionally, the interventions from the Tariff and Trade Department have contributed immensely to the successes achieved.

This impressive revenue collection is a testament to the Apapa Command’s dedication to promoting legitimate trade and preventing revenue leakage.

The Command remains committed to doing more in line with the directives of the Comptroller General of Customs.

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BREAKING: NNPCL steps aside as middleman for Dangote Refinery Petrol

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2 days ago

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October 7, 2024

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NNPCL steps aside as middleman for Dangote Refinery Petrol

Marketers can now buy directly from DR at open market price.

Meaning Nigerians should brace up.

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Pakistan seals off capital, blocks cellphones ahead of protest by Imran Khan’s party

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5 days ago

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October 4, 2024

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By Asif Shahzad

ISLAMABAD (Reuters) – Authorities in Pakistan sealed off the capital, Islamabad, and blocked cellphone services on Friday to prevent an anti-government rally by supporters of jailed former Prime Minister Imran Khan, officials said.

It would be the latest in a series of protest rallies since last month to press for Khan’s release and agitate against the ruling coalition government, which the party calls illegitimate, saying it was formed after a fraudulent election.

Shipping containers have been placed to block Islamabad’s entry and exit points, guarded by large numbers of police and paramilitary troops, the officials said, while police banned any gathering in the capital.

“If someone plans to storm Islamabad, we wouldn’t let that happen,” Interior Minister Mohsin Naqvi told a news conference late on Thursday.

He urged Khan’s party to shift the rally to later dates, to avoid disrupting Islamabad’s preparations to host a meeting of the Shanghai Co-operation Organisation (SCO) on Oct. 15 and Oct. 16.

Malaysian Prime Minister Anwar Ibrahim is visiting, to be followed by a high-profile Saudi delegation and Chinese Premier Li Qiang ahead of the conference, Naqvi said, adding, “We can’t allow any chaos.”

Any agitation in the capital would not send a good signal to the world ahead of the conference, Naqvi said.

Disregarding the appeal, Khan asked his supporters to gather outside parliament regardless of obstacles.

“I want you all to reach D-Chowk today for a peaceful protest rally,” he posted on X on Friday, referring to a spot outside parliament. “This war has entered a decisive phase.”

Even though Khan has been in jail since Aug 2023, candidates backed by him won the most seats in February’s general election, though their numbers were insufficient to form a government.

His opponents, led by Prime Minister Shehbaz Sharif, formed a coalition government instead.

In a statement on Friday, Islamabad police warned they would take action against anyone attempting to disturb the peace in the capital, adding that any gathering had been banned.

Schools were shut and cellphone services suspended in Islamabad and the adjacent garrison city of Rawalpindi.

A telecoms official said cellphone services were blocked on directions from the interior ministry. A ministry spokesman did not respond to a request for a comment.

(Reporting by Asif Shahzad; Editing by Clarence Fernandez)

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