• Cement
• Dangote
• Umahi
• Works

NIGERIA GOVERNMENT ORDERS CEMENT MANUFACTURERS TO LOWER PRICES

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  CapitalTimesNews / 3 weeks
• 0
• 2 min read

The Federal Government has directed cement manufacturers to reduce the price of a 50kg bag of cement to N7,000 within seven days or face being reported to President Bola Tinubu. Minister of Works, Dave Umahi, issued the ultimatum, citing the stabilised exchange rate and crashing petrol costs as reasons for the price reduction. Umahi explained that with the exchange rate now at N1,400 to a dollar, there is no justification for the high price of cement. He noted that when the exchange rate was N2,000 to a dollar, cement manufacturers raised the price to N7,500, questioning why the product is still selling at N9,500 per 50kg bag. The minister’s directive comes as contractors have complained about the high cost of cement, which has led them to consider reverting to asphalt in road construction. Umahi stressed that the government plans to fix major roads in the country, making it essential for cement prices to be reduced. Meanwhile, a new cement firm, Huaxin Cement Company, is set to enter the Nigerian market. The Chinese firm has valued 100% of Lafarge Africa’s shareholding at $1.6 billion and plans to acquire Holcim’s 83% stake in the company for $838.8 million. The acquisition is part of Huaxin’s overseas expansion plan, which focuses on leveraging its expertise in industrial technology and production chain integration to drive growth. Lafarge Africa stated that the acquisition aligns with Huaxin’s strategy, and the valuation assumes cement prices in Nigeria will range from $100 to $150 per tonne, based on Lafarge’s annual production capacity of 10.6 million tonnes.