Economic Security: FG Threatens To Import Large Quantities Of Cement [VIDEO]

Mr. Ahmed Dangiwa, Minister of Housing and Urban Development

The Federal Government has hinted that it may be forced to throw the borders open for the importation of cement.

The Minister of Housing and Urban Development, Mr. Ahmed Dangiwa, has threatened to reopen borders for cement imports in an effort to drive down prices for cement manufacturers.

If cement producers are unable to lower the price of their product, the federal government says it may allow large-scale imports of cement.

The minister of housing and urban development, Ahmed Dangiwa, revealed this on Tuesday in Abuja during a meeting with producers of cement and building supplies.

The meeting was called in order to discuss the rapidly increasing cost of cement on a national level.

This came about as a result of the February 19, 2024, agreement reached by the federal government and significant cement producers to set the price of a 50 kg bag of cement between N7,000 and N8,000.

According to Dangiwa, the cost of cement and other building supplies has been rising nationally over the last several months, which is alarming.

“Clearly, this is a crisis for housing delivery. An increase in essential building materials means an increase in the prices of houses,” he said.

“We are not the only country facing these challenges, many countries are facing the same type of challenges that we're facing, some even worse than that.

“But, as patriotic citizens, we have to rally round the country when there is crisis, to ensure that we do our best to save the situation.

“Honestly speaking, we have to sit down and look at this critically and know how you should go back and think of it.”

The minister stated that the government stopped importing cement in order to allow local businesses to produce more and sell their products for less money.

“Otherwise the government can open the borders for mass importation of cement, the price will crash, but you will have no business to do,” he said.

Dangiwa stated that cement manufacturers' justifications for the price increase—the high cost of gas and manufacturing equipment—were insufficient to support such exorbitant pricing.

He voiced his dissatisfaction with the Cement Manufacturer Association of Nigeria's (CEMAN) assertion that the organization “does not interfere with the pricing of cement.”

The minister stated that the association ought to speak up when things were not going well.

“One person cannot be selling at N3500 per bag and another selling at N7000 per bag and you cannot call them to order,” Dangiwa said.

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“The association is expected to monitor price control, otherwise the association has no need to exist.”

The executive secretary of CEMAN, Salako James, highlighted the difficulties in supplying heavy users such as the cement industry with gas.

James instructed the government to address price disparities between manufacturers and market prices and establish a window based on the naira.

Salako requested government action to help stabilize the situation and restore economic stability.

Watch video of his speech below 

🎥 Credit: NAN