The Cement Producers Association of Nigeria has issued a cautionary statement, expressing concerns that the federal government’s ongoing plan to introduce concrete roads could potentially increase the price of cement to N9,000 per bag, up from the current rate of N5,000.
In a statement jointly signed by the National Chairman, Prince David Iweta, and National Secretary, Chief Reagan Ufomba, the association commended the Minister of Works for supporting the idea of cement-made roads but cautioned about potential adverse consequences if the supply side of the equation is not adequately addressed.
The statement reads,
The association has also called upon the current administration to permanently resolve the persistent issue of rising cement prices by encouraging greater involvement in the cement industry, emphasizing that Nigerians should not have to pay more than N5,600 per bag.
To address this challenge, the cement producers have recommended that the government place more emphasis on road design that accommodates 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.
The association also called on the federal government to intervene in the forex market and help manufacturers in restructuring bad loans.
The Federal government through the Minister of Works has expressed in the FG’s intent to construct roads using concrete rather than conventional asphalt.
In a chat with newsmen after his visit to the President, the Chairman of Bua group owners of Bua Cement said cement prices will drop from N5000 to N3500 in the coming months following the opening of their new plant.
