Emmanuel OchayiIn response to the government’s plan to introduce concrete roads, the Cement Producers Association of Nigeria has issued a stark warning that the move could lead to a significant surge in cement prices, potentially reaching a staggering N9,000 per bag.
The current price stands at N5,000 per bag, and the association insists that such an increase would be detrimental to the nation’s infrastructure and the pockets of its citizens.
Join our WhatsApp ChannelThe association, represented by its National Chairman, Prince David Iweta, and National Secretary, Chief Reagan Ufomba, expressed their concerns in a joint statement released on Sunday.
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While commending the Minister of Works for championing the use of cement in road construction, they cautioned that the supply-side issues must be addressed to prevent dire consequences.
Prince David Iweta emphasized, “Our findings from various parts of the country show that cement sells for as high as N6,000 per bag in the rainy season. Our prediction is 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.”
The association urged the government to focus on road designs that facilitate the concurrent use of cement technology and asphalt pavement. This approach, they argued, would provide ample time for a smooth transition and allow contractors to invest in the necessary equipment and retooling.
They also called for the implementation of weighbridges at access points on highways to regulate static and dynamic load traffic effectively.
Furthermore, the Cement Producers Association requested the government to conclude the backward integration policy initiated during the late Yar’adua administration, which had shown promise in improving the availability and affordability of cement in Nigeria.
In their concluding remarks, the association highlighted the need for policy harmonization and convergence between fiscal and monetary policies, urging the government to intervene in the foreign exchange market, restructure bad loans of manufacturers, and review palliative modules.
“As patriots, it is our view that the government reintroduces backward integration policy and the conclusion of old ones. The government cannot be seen to approbate and reprobate by deregulating issues of petroleum products and foreign exchange on one hand and regulating the pricing of cement, essential goods, and services on another. There is a need for policy harmonization and convergence between fiscal and monetary policies,” the statement concluded.
The warning from the Cement Producers Association serves as a call to action for the Nigerian government to carefully consider the potential economic repercussions of its infrastructure plans and to find a balance between promoting cement used in road construction and ensuring the affordability of this essential building material for its citizens.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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