Nigeria Considers Opening Borders To Cement Imports Amidst Supply Concerns

The Nigerian federal government has issued a warning, suggesting the possibility of reopening borders to cement imports if local manufacturers do not reduce the commodity’s price. Minister of Housing and Urban Development, Arc Ahmed Dangiwa, conveyed this message during an emergency meeting with cement and building materials manufacturers in Abuja on February 20……….CONTINUE READING

Dangiwa emphasized that key input materials for cement production, such as limestone, clay, silica sand, and gypsum, sourced domestically, should not be priced in dollars. He argued against the manufacturers’ claims that the rising costs of gas and mining equipment justified the high prices, asserting that gas is a local raw material, and mining equipment has been in use for extended periods.

The minister highlighted that the initial closure of borders to cement imports aimed to support local manufacturers. However, he cautioned that reopening borders for mass importation could significantly reduce cement prices, impacting local manufacturers adversely.

Dangiwa called upon manufacturers to exhibit patriotism, citing the willingness of BUA Cement to lower prices below the agreed N7000-N8000 range. He urged other manufacturers to follow suit for the benefit of consumers and the industry.

Responding to the manufacturers’ concerns, Dangiwa emphasized the need for collaboration during crises, citing similar challenges faced by other countries. He questioned the validity of excuses related to gas prices and the depreciation of mining equipment due to fluctuations in the exchange rate.

The minister also criticized the Cement Manufacturers of Nigeria for not regulating cement prices within the country. In response, he announced plans to establish a committee comprising representatives from each cement manufacturer, the industry association, and the government. This committee’s mandate would be to devise strategies to address the persistently high prices of cement in Nigeria.

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