Cement producers in Nigeria have tasked Muhammadu Buhari, the President-elect, to make a ‘change’ in the cement market by causing the price of the commodity to come down to N1,000 per bag from its current market price of N2,200 per bag.
The producers under the aegis of Cement Producers Association of Nigeria (CPAN) also called on the president-elect to assist them in fighting corruption in the sector allegedly perpetrated by a cabal that has been dictating cement policies in the country for personal interests.
“This cabal has been making abnormal annual profit in the region of N200 billion from cement alone for the past six years by partnering with the Federal Government to suspend cement import permit granted by late President Musa Yar’Adua to six companies, one from each of the six geo-political zones”, said David Iweta, chairman of CPAN.
Iweta, whose views were contained in the association’s congratulatory letter to Buhari made available to the media, pleaded that cement should be allowed to be imported into Lagos, Warri and Calabar as the first dividend of change for Nigerians.
The letter reads in part: “We wish to use this medium to appeal to you and your government at inauguration to declare a change in price of cement from N2,200 per bag to N1,000 per bag. This will serve as the first dividend of change which the people of Nigeria voted for. The cement industry after the death of late President Musa Yar’Adua has witnessed the worst of corruption and injustice in the past six years.
“It may interest you to know that Nigeria is the country with the highest price of cement in the world. Why? It is worthy of mention that countries that have attained self-sufficiency in cement production all over the world sell cement at N500 per bag. But in Nigeria where the Federal Government has claimed success in the cement industry, net exporter of cement is selling the commodity at N2,200 per bag.
“But not a bag is exported since 2012 as claimed. Why? It is a known fact that all West Africa countries, East, North and South Africa sell cement under N1,000 per bag; but in Nigeria, it is selling for N2,200. Why? New foreign direct investors are barred from venturing into the Nigeria cement industry since the past six years so that cement price will remain high”.
The association noted that global best practice was to allow cement importation at the coastal regions for the purpose of cheap cement for such region instead of transporting the products over a long distance by road.
Even with high degree of infrastructure development in Germany and Iran, the association noted, cement was allowed to be imported into the coastal areas of these countries because it was cheaper to transport the product by sea in large volume than by road within same country.
According to the association, the Nigerian cement market was under mortgage to the cabal whose brand sells for N2,200 per bag in Nigeria, while same brand in Bonaberi-Douala in the Republic of Cameroon sells for N1,000 per bag, describing this as the height of lack of patriotism and exploitation of Nigerian people.
CHUKA UROKO
