The Federal Government has threatened to open the borders to allow the importation of cement if Nigeria’s manufacturers refuse to reduce the price of the commodity in the country.
The Minister of Housing and Urban Development, Ahmed Dangiwa, disclosed this in Abuja during an emergency meeting held with cement and building materials manufacturers, on Tuesday, February 20.
Dangiwa explained that key input materials for cement production such as limestone, clay, silica sand, and gypsum were sourced within the nation’s borders, adding that such should not be dollar-rated.
He further said the price of gas that manufacturers are using as an excuse was not tenable because “gas is a raw material found within the country.””
The minister added that the excuse of a hike in mining equipment prices does not suffice because equipment bought by the manufacturers has been used for decades and not purchased every day.
Dangiwa said the closure of borders against cement importation was to boost the local production of cement and to help the manufacturers to grow.
However, he noted that if the government decides to open the border for mass importation, prices of cement would crash and local manufacturers would be gravely affected.
He called upon the manufacturers to demonstrate patriotism and cited BUA cement’s willingness to reduce prices as an example to emulate. The Minister stressed the need for unity in overcoming industry challenges, urging stakeholders to collaborate in finding solutions.
“The challenges you speak of, many countries are facing the same challenges and some even worse than that, but as patriotic citizens, we have to rally around whenever there is a crisis to change the situation,” the minister said.
Inflation in Nigeria has been on a steady increase lately. The country’s headline inflation rose to 29.90% in January, an increase from the 28.92% reported in December, according to the National Bureau of Statistics (NBS). The food inflation rate also hit 35.41% on a year-on-year basis.
