The Cement Producers Association of Nigeria has raised concerns about the federal government’s plan to implement concrete roads, warning that it could potentially lead to a significant increase in cement prices, potentially reaching as high as N9,000 per bag, compared to the current price of N5,000.
In a joint statement issued by the National Chairman, Prince David Iweta, and the National Secretary, Chief Reagan Ufomba, the association has called upon the government to take permanent measures to address the recurring issue of rising cement prices.
They emphasised the importance of encouraging increased participation in the cement industry to stabilise prices.
While the association acknowledged and commended the Minister of Works for advocating the use of cement in road construction, they also expressed concerns about potential adverse consequences if the supply-side challenges are not adequately resolved.
As a solution, the cement producers have recommended a focus on road designs that allow for the simultaneous use of both cement technology and asphalt pavement.
This approach would provide ample time for a smooth transition and enable contractors to invest in the necessary equipment and retool.
Furthermore, they urged the government to expedite the conclusion of the backward integration policy, which was initiated during the late Yar’adua administration. The association stressed the importance of ensuring that cement remains affordable and accessible for the nation’s development.
Additionally, the association called on the government to harmonise and align fiscal and monetary policies and take proactive measures to intervene in the foreign exchange market. They highlighted the necessity of restructuring bad loans for manufacturers and conducting a comprehensive review of palliative modules to revitalise the manufacturing sector.
In conclusion, the association emphasised the need for decisive economic policies that prioritise the well-being of the people and reduce the country’s reliance on foreign direct investment (FDI).
