Prices of cement skyrocket in spite of government’s recent granting of provisional import licences to cement manufacturers

By Clement Oriloye

Worried by the problems of inadequate supply and high pricing of cement, stakeholders in the cement business held a meeting last October to deliberate on the matter. To this end, Chief Charles Ugwuh, Minister of Commerce and Industry submitted a proposal to President Umar Musa Yar’Adua for consideration.

Yar’Adua, acceding to recommendations in the proposal, on 14 January  announced the granting of provisional licences to cement manufacturers for the importation of bulk cement for bagging in Nigeria.

According to Ugwuh, the decision was in line with government’s policy of gradually reducing importation of cement, increasing value addition, providing employment and guaranteeing quality of cement consumed in the country. Ugwuh said government would allocate the shortfall to investors in the downstream sector to import. He noted that a blend of the cheap imported product with the locally manufactured products will position Nigerians for better prices.

Good as the policy may be, it does not seem to be achieving its objectives. In the past one month, the cost of cement has risen to an astronomical high of between N2000 and N2200 in different parts of the country. Stakeholders fear that the price jump could take a huge toll on housing and construction projects, and thus retard economic development.

With an estimated annual demand for cement put at 18 million metric tonnes, the local operators are only able to supply 6.5 million metric tonnes, leaving a shortfall of 11.5 million metric tonnes, which the government’s provisional licence is expected to address.

For full details, demand the 25th, February 2008 issue of TheNEWS from your vendor now.

Foreign Operations: UK/EUROPE AGENT
Jay Magazines & Newspaper Distribution
Unit 21 Brockley Cross
Business Centre,
96 Endwell Road, London SE42PD
Contact: Julie Ugbowanko
Tel:020-7635-8888,07976-628-251
Fax: 0207-635-5568
E-Mail: Jaymags@aol.com
Website: www.jaymags.com

QUALITY NETWORK SERVICES
Unit 9, Meridian Centre, 258 Kingsland Road, London E8 4DG
Contact: Abiola Fatai
Tel: 0208 525 1689, 0207 254 0371,  0956413 293
E-mail: fataiabiola2000@yahoo.com