The Federal Government has issued a stern warning to Nigeria’s cement manufacturers, stating its intention to open borders for cement importation if prices remain high domestically. 

The Minister of Housing and Urban Development, Ahmed Dangiwa, on Tuesday emphasized that key input materials like limestone, clay, silica sand, and gypsum, sourced locally, should not be priced in dollars.

Speaking at an emergency meeting in Abuja with cement and building materials manufacturers, Dangiwa challenged the industry’s rationale behind high prices. 

He disputed claims of cost escalation due to gas prices, pointing out that gas is domestically available. Furthermore, he dismissed concerns about mining equipment costs, noting their long-term usability.

The minister underscored the government’s decision to close borders to cement imports to support local manufacturers. However, he cautioned that opening borders could lead to price crashes, adversely affecting local producers.

“The challenges you speak of, many countries are facing the same challenges and some even worse than that but as patriotic citizens, we have to rally around whenever there is a crisis to change the situation.

“The gas price you spoke of, we know that we produce gas in the country. The only thing you can say is that maybe it is not enough

“Even if you say about 50 percent of your production cost is spent on gas prices, we still produce gas in Nigeria. It’s just that some of the manufacturers take advantage of the situation. As for the mining equipment that you mentioned, you buy equipment and it takes years and you are still using it,” he said.

Dangiwa urged manufacturers to prioritize patriotism, highlighting BUA Cement’s willingness to lower prices below the agreed N7000 to N8000 range. 

He called for collective action during crises, emphasizing Nigeria’s gas production capacity and the longevity of mining equipment.

Rabiu Umar, the Group Chief Commercial Officer of Dangote Cement, attributed high cement prices to the costly nature of gas and mining equipment, highlighting the industry’s dependence on forex-related items despite local raw material availability.