The Minister of Industry, Trade, and Investment, Doris Nkiruka Uzoka-Anite, has proposed extending gas concessions currently given to electricity companies to cement manufacturers to mitigate rising operational costs, which have led to product price hikes.
Represented by the Permanent Secretary in her ministry, Ambassador Nura Rimi, Uzoka-Anite made this assertion during an investigative hearing conducted by the House of Representatives Joint Committee on Solid Minerals, Industry, Commerce, and Special Duties.
She stated, “Cement manufacturers should be granted a gas concession similar to the ‘gas to light price’ enjoyed by electricity distributors.”
The minister pointed out that a recent meeting with the Minister of Works,Engr. David Umahi and major cement manufacturing companies, recommended same.
She said: “There is need for friendly gas pricing. The meeting recommended the gas-to-power concession given to the electricity companies should also be enjoyed by cement companies.”
She identified some of the challenges facing cement manufacturers to include cost of gas, high import duty on spare parts, ad road network, high foreign exchange, and smuggling of cement to neighbouring nations.
Uzoka-Anite said cement manufacturers and the government noted that the current high price of cement was abnormal in some locations nationwide, as it was unanimously agreed that cement retail prices should not cost more than N7,000 to N8,000.00 per 50kg bag, depending on the location.
She said government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, adding that manufacturers had willingly accepted to do so and to sanction any of her distributors or retailers found wanting.
She noted that the country was self-sufficient in cement manufacturing, with major players, such as Dangote industries Limited, BUA Group, and Lafarge Holcin.