Yesterday manufacturers said a bag of cement cannot be sold below N7,000 due to the increasing cost of production.
They said the rise in operating costs was responsible for the price hike.
The producers have agreed to reduce the price per 50kg bag from between N9,000 to N15,000 to between N7,000 and N8,000 depending on the location nationwide.
Representatives of Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc committed after a meeting with Minister of Works, David Umahi, which was attended by his Industry, Trade, and Investment counterpart, Doris Uzoka-Anite in Abuja.
Umahi called the meeting following the skyrocketing price of cement.
The manufacturers blamed the high cost of gas, import duties, bad road network, smuggling, and the prevailing foreign exchange rate for the hike.
Executive Director of BUA, Kabir Rabiu, said the manufacturers would abide by the agreement.
He said: “Our cost component of energy went from 39 per cent to 60 per cent.
“The price of gas last year was N415, then it went to N715.
“Today, we are paying over N1,500. All these issues were discussed and we gave our commitment.
“When our six million tonnes of cement is supplied to the market in a few weeks, definitely we will see a sharp drop in prices when that volume hits the market.”
