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Tinubu, Cement manufacturers agree on N7,000 to N8,000 for 50kg per bag

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…to review agreement in 30 days

…manufacturers blame forex crisis, bad roads, smuggling for increase

 

Federal Government of Nigeria and Cement Manufacturers have agreed on a N7,000 to N8,000 per 50 kg bag of cement to halt the astronomical rise in the price of the product.

This agreement was part of a deal struck after several hours of meeting held behind closed doors at the Headquarters of the Ministry of Works, between the Federal Government and cement manufacturers , in Abuja, on Monday.

The manufacturers tentatively agreed to sell a 50kg bag of cement at a retail price between N7,000 and N8,000, depending on location nationwide,

They however put a caveat that the price drop from the current market price would largely depend on government fulfilling its promised interventions in certain areas of concern to ameliorate critical challenges faced in the industry.

Retail price for cement jumped from N5,000 to N10,000 within one week in the open market, after wholesalers citing increasing cost of transportation and other variables, made adjustments to the price they sell to retailers.

Retailers in turn transferred the additional cost burden to consumers to stay afloat.

 

This prompted President Bola Tinubu to order the Ministers of Works, David Umahi and his Trade and Investment counterpart, Dr. Doris Uzoka-Anite. to meet with Cement manufacturers to find a solution to the crisis.

 

Umahi, had while calling for the meeting expressed the Federal Government’s concern over the development adding that if the situation wasn’t brought under control, it had the potential of hurting the prosperity agenda of rhe current administration .

After the meeting, Umahi read out a communique in which he mentioned concerns raised by the manufacturers.

These concerns include: bad roads, smuggling, high cost of energy, and the Forex crisis. This according to the manufacturers were the primary reasons behind the price hike.

He also said the manufacturers expressed willingness to reduce the prices going forward.

 

Manufacturers at the meeting include: Dangote Cement PLC, BuA Cement PLC, Larfarge Africa PLC and Cement Producers Association.

Reapresentatoves of the Federal Government include: The Minister of Works and his counterpart in the Ministry of Industry, Trade and Investment,

While reading the communique, Umahi said, “The meeting noted the challenges of the manufacturers like: Cost of gas;, High import duty on spare parts; Bad road network; High foreign exchange; and Smuggling of cement to neighbouring nations.

“The government noted the challenges and reacted as follows: Federal Ministry of Industry, Trade and Investment to seek some remedies from Mr. President on cost of gas and import duties.

“Federal Ministry of Works to give more attention to fixing of the roads, especially around the locations of the manufacturers.

 

On the issue of smuggling cement, the Federal Ministry of Industry, Trade and Investment to deepen the already started engagement with the National Security Adviser on how to stop the smuggling.

“The cement manufacturers and the Government noted that the current high price of cement is abnormal in some locations nationwide. Ideally, cement retail prices should not cost more than ₦7,000.00 to ₦8,000.00/ 50kg bag of cement.

“Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc and Larfarge Africa Plc have agreed that cement cost will not be more than between ₦7,000.00 and ₦8,000.00/50kg bag depending on the location.

“Going forward, Government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, and manufacturers have willingly accepted to do so and to sanction any of her 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.

“The meeting agreed to reconvene in 30 days to review progress made.”

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‘Dangote not above the law’ – NLC counters VP Shettima

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The Nigeria Labour Congress, NLC, has countered Vice President Kashim Shettima for describing the Dangote Group as a national asset.

A statement by the NLC president, Joe Ajaero on Tuesday said no company, regardless of size or influence, is above the country’s labour laws.

Ajaero described Shettima’s remarks as a national tragedy, warning that they could signal that wealth and political clout override legal protections for workers, potentially undermining labour rights in Africa’s largest economy.

 

The NLC boss also accused the Dangote Group of infringing on workers’ rights to freedom of association, including the right to join trade unions of their choice, as enshrined in the Nigerian Constitution, the Labour Act, the Trade Union Act, and core International Labour Organisation conventions.

According to him, the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, was fulfilling its mandate to protect members from exploitation and criticised attempts to portray union activity as sabotage or a threat to national interests.

Ajaero also called for stronger enforcement mechanisms to ensure compliance, insisting that human capital, not corporations, is the nation’s true asset

“We state unequivocally to Vice President Shettima: No company, no matter how big, ‘strategic’, or well-connected, can operate outside the law or be bigger than Nigeria. If the Dangote Refinery is to be granted rights and privileges above the law, then the government must be prepared for the storms such injustice will inevitably unleash. There can be no peace without justice.

“The serial violations of the ideals of decent work are a ticking time bomb,” Ajaero said.

“We will mobilise, we will organise, and we will fight back. There are no sacred cows,” he warned.

This comes after the sacking of roughly 800 workers at the Dangote Refinery after they joined PENGASSAN.

Ekwutosblog recalls that Shettima publicly condemned the industrial action as a minor labour dispute that should not hold Nigeria to ransom, stressing the refinery’s critical role in the economy.

The Vice President equally commended billionaire industrialist, Aliko Dangote for his investment in Nigeria and called for industrial harmony to maintain investor confidence.

It could also be recalled that the Federal Government’s intervention resulted to a conciliatory agreement under which the dismissed workers were reinstated, the strike suspended, and operations restored.

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Subject: A cashier at a Kingsway store.

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Location: Lagos, Nigeria.
Date: Circa January 1962.

Photographer/Source: Pix/Michael Ochs Archives.
Significance: The image captures the era of Kingsway Stores, which symbolized modern and cosmopolitan life in West Africa in the early 1960s.
About Kingsway Stores

Origins: The chain began as Lever’s Stores in 1922, evolving through Opobo Stores Ltd before becoming Kingsway Stores Ltd in 1947.

Expansion: The first store in Nigeria opened in Lagos in 1948, followed by others in cities like Freetown, Accra, Ibadan, and Port Harcourt.

Impact: Kingsway Stores represented a modern, western-style shopping experience, with departments for various goods, and were a popular shopping destination for Nigerians.

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TINUBU TO UNVEIL $400M INDIGENOUS CRUDE OIL TERMINAL IN ANDONI, RIVERS STATE.

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President Bola Tinubu is scheduled to commission the $400m Otakikpo Onshore Crude Oil Export Terminal in Rivers State on October 8, the first new crude export facility to be built in Nigeria in over 50 years.

The facility, developed by Green Energy International Limited, operators of the Otakikpo field in OML 11, Ikuru town, Andoni Local Government Area of Rivers State, is the first wholly indigenous onshore terminal built in Nigeria. The last such facility, the Forcados Terminal, was commissioned in 1971.

The inauguration is expected to attract top government officials, including the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, Rivers State Governor, Siminalayi Fubara, and key stakeholders across the oil and gas sector.

The Otakikpo terminal is expected to serve as a lifeline to more than 40 stranded oil fields by providing a reliable evacuation outlet, potentially unlocking millions of barrels of crude previously trapped underground.

With an initial storage capacity of 750,000 barrels, expandable to three million barrels, and a loading capacity of 360,000 barrels per day, the facility is also projected to reduce production costs for indigenous producers significantly.

Chairman and Chief Executive of GEIL, Professor Anthony Adegbulugbe, described the terminal as a “game-changing national infrastructure.”

“What we have achieved here is not just a storage solution, but a pathway for about 40 stranded oil fields to finally contribute to the economy,” Adegbulugbe said.

The commissioning underscores the Federal Government’s renewed efforts to restore investor confidence in Nigeria’s oil sector, which has struggled with declining production, pipeline vandalism, oil theft, and rising operational costs in recent years.

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