The Nigerian House of Representatives has invited cement manufacturers, including Dangote Cement and BUA Cement, to appear before them to discuss the high prices of cement. The invitation comes after the adoption of a motion titled 'Arbitrary increase in the price of cement by manufacturers of cement in Nigeria.' Cement manufacturers have increased the price of the product by about 50%, leading to sharp hikes in the prices of building blocks, the cost of building, and rents across the country. The House resolution aims to find ways to mitigate the hardship caused by the high cement prices. The manufacturers have been asked to appear before the House in the next sectoral debate, and the committees on Solid Minerals Development, Commerce, Industry, and Special Duties have been mandated to investigate the arbitrary increase in the price of cement and report back within four weeks.
The National Chairman of the Cement Producers’ Association of Nigeria, David Iweta, has stated that the association is ready to help the Nigerian government crash cement prices within 30 days if taken along as part of efforts to find a solution. Iweta attributed the continued increase in the product's price to the challenge of demand outweighing supply in the sector. He also called for the Nigerian government to revisit late President Umar Yar’Adua’s Integration Policy, which licensed some players in the cement industry to import the commodity but was sabotaged by a few people. The minister of works, David Umahi, has summoned cement manufacturers, including Dangote Plc, BUA Plc, and Lafarge, to a meeting on Monday, February 19, to examine the issues surrounding the alarming increase in cement prices. [8280fa58]
Cement manufacturers Dangote, BUA, and Lafarge have explained the reasons behind the recent surge in cement prices in Nigeria. They cited challenges such as import duties, poor road infrastructure, and forex rates as contributing factors. The manufacturers met with the federal government and agreed to reduce the price range of cement from N9,000 to N15,000 per 50kg to a new range of between N7,000 and N8,000, varying by location. The rise in operational expenses, including exorbitant gas costs and high foreign exchange rates, hinder an immediate reduction in the price. The significant gap between demand and supply has also contributed to the price surge. The Nigerian Institute of Building has called on the government to intervene and lower the cement price in the country. [2d578833]
In addition to the challenges faced by the cement industry in Nigeria, a new cement factory is set to commence operations in Ethiopia, competing with Dangote Cement. The factory is expected to be the largest in the country and will officially open in March 2024. It is projected to generate approximately 20,000 jobs for Ethiopians. The factory, owned by Lemi National Cement PLC, will increase the country's annual cement production capacity by eight million metric tonnes. The new company will produce 10,000 tons per day of clinker, or 4.5 million tons per year of cement. Dangote Cement, which is already operational in Ethiopia, will be the main competitor. The construction industry in Ethiopia is expected to benefit from the new plant's ability to reduce the country's cement shortage. The factory is owned by a joint venture between East African Holding Company and West International Holding. It is located in the Lemi Building Materials Industrial Park, 150 kilometers north of Addis Ababa. The factory hopes to cover more than 50% of Ethiopia's current cement demand when the project is completed. [b0a8d7bc]