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The Minister of Industry, Trade and Investment, Doris Nkiruka Uzoka-Anite, has asked that gas concession given to electricity companies be extended to cement manufacturers as a means of addressing the rise in the cost of operations, which necessitated the hike in the product.
The major players in the industry are Dangote Cement, BUA Cement, and Lafarge Africa Plc.
Uzoka-Anite made the request during an investigative hearing by the House of Representatives Joint Committee on Solid Minerals, Industry, Commerce and Special Duties.
Represented by the Permanent Secretary in the ministry, Ambassador Nura Rimi, she said : " Cement manufacturers should be accorded ‘the gas to light price’ as enjoyed by electricity distributors."
The minister pointed out that a recent meeting with the Minister of Works, Engr. David Umahi and major cement manufacturing companies, recommended same.
“There is need for friendly gas pricing. The meeting recommended the gas-to-power concession given to the electricity companies should also be enjoyed by cement companies.”
She identified some of the challenges facing cement manufacturers to include cost of gas, high import duty on spare parts, ad road network, high foreign exchange, and smuggling of cement to neighbouring nations.
Uzoka-Anite said cement manufacturers and the government noted that the current high price of cement was abnormal in some locations nationwide, as it was unanimously agreed that cement retail prices should not cost more than N7,000 to N8,000.00 per 50kg bag, depending on the location.
She said government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, adding that manufacturers had willingly accepted to do so and to sanction any of her distributors or retailers found wanting.
