Business News

FG and cement producers agree to set cement prices at N7000 to N8000 

The Federal Government, together with cement manufacturers such as BUA, Dangote and Larfarge, has set the price range for a 50kg bag of cement at N7,000 to N8,000 across various locations in the country.  

This price adjustment was announced by Senator David Umahi following an extended discussion with key players in the cement industry held in Abuja on Monday. 

Despite the agreed price reduction, manufacturers emphasized that the decrease from the current market rates is contingent upon the government’s commitment to address significant challenges within the sector. 

The initiative, spearheaded by President Bola Tinubu, aims to tackle the surge in cement prices, which Senator Umahi described as excessive and counterproductive to the economic growth ambitions of the government. 

In his remarks, the minister highlighted several factors contributing to the inflated costs, including smuggling, poor road conditions, elevated energy expenses, and the foreign exchange dilemma.

He, however, noted the manufacturers’ willingness to reduce prices provided these issues are effectively addressed by government interventions. 

In the past few weeks, the price of a 50kg bag of cement increased to an all-time high of over N9,500 across different cities in the country. The cause of the spike has been attributed to increase in energy cost and other operational expenses.  

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