The Cement Producers Association of Nigeria has sounded an alarm regarding the potential consequences of the federal government’s ambitious plan to introduce concrete roads. The association expressed fears that this initiative could lead to a substantial increase in the price of cement, raising it from the current rate of N5,000 per bag to a staggering N9,000.
In a joint statement signed by the National Chairman, Prince David Iweta, and National Secretary, Chief Reagan Ufomba, the association acknowledged the Minister of Works for supporting the concept of cement-made roads but cautioned against potential adverse outcomes if the supply side of the equation is not adequately addressed.
The statement reads:
“Our findings from various parts of the country show that cement sells for as high as N6,000 per bag in the rainy season. We predict that it will
sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr. President if the government does not take proactive steps.
“While we commend the Honourable Minister’s position on cement-made roads, we warn of the dire consequences if the supply end is not properly addressed. It would amount to a dereliction of duty not to intervene. And the time is now.
“To do otherwise is to continue in a worsening pipe dream that prices would suddenly drop on this essential input that will continue to drain the purse of Nigerians, render them homeless, encourage chaos between demand and supply, and worsen the infrastructure deficit it sets out to cure, and lead to an unprecedented price hike.”
The association has further called upon the current administration to take decisive measures to permanently resolve the persistent issue of rising cement prices. They emphasize that Nigerians should not be burdened with paying more than N5,600 per bag.
To tackle this challenge, the cement producers have recommended that the government focus on road designs that can accommodate both cement technology and asphalt pavement simultaneously. They propose allowing ample time for a smooth transition, enabling contractors to invest in the necessary equipment and retooling for this purpose.
Additionally, the association has urged the federal government to intervene in the forex market and assist manufacturers in restructuring bad loans.
Background:
The Federal government, through the Minister of Works, has expressed its intent to construct roads using concrete rather than conventional asphalt. In a statement, the Chairman of Bua group, owners of Bua Cement, mentioned that cement prices are expected to drop from N5,000 to N3,500 in the coming months following the opening of their new plant.
Credit: Nairametrics
