Cement Price may hit N9,000 as Nigeria Shifts to Concrete Roads – The federal government’s recent initiative to transition to concrete roads could see cement prices skyrocket to N9,000 per bag, up from the current N5,000, warns the Cement Producers Association of Nigeria (CPAN). The association urges the government to ensure larger participation in the cement industry, arguing that Nigerians shouldn’t be paying more than N5,600 per bag.
In a joint statement released on Sunday by CPAN’s National Chairman, Prince David Iweta, and National Secretary, Chief Reagan Ufomba, the association praised the Minister of Works’ stance on cement-made roads. However, they expressed concerns about potential negative outcomes if the supply chain is not adequately managed.
To address this, CPAN suggests the government should focus on road designs that incorporate both cement technology and asphalt pavement. This would allow a seamless transition, giving contractors adequate time to invest in appropriate equipment and retooling. The association also emphasized the necessity of regulating traffic load and introducing weighbridges on highways, while collaborating with relevant ministries to establish a cohesive policy on cement.
A key concern highlighted by the association is the fluctuating price of cement, which can surge to N6,000 per bag during the rainy season. They predict that, without preemptive governmental measures, prices might soar beyond N9,000 per bag in the dry season.
CPAN further appealed to the government to finalize the backward integration policy initiated during the Yar’adua administration, which was showing promising signs of making cement both available and affordable. They emphasized that the nation requires readily available and affordable cement, which can’t be achieved through mere wishes or flawed policies. Breaking the monopoly and eliminating favoritism in the sector is essential.
The association stressed the need for policy coherence, especially given the government’s move to deregulate petroleum products and foreign exchange while still maintaining control over cement pricing. CPAN concludes by urging the government to make significant interventions in the foreign exchange market, restructure manufacturers’ bad loans, and review palliative modules to boost manufacturing and reduce the nation’s dependency on foreign direct investments.