Cement: N1,000 price-tag, CPAN takes case to Buhari | Independent Newspapers Limited
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Cement: N1,000 price-tag, CPAN takes case to Buhari

Posted: Apr 7, 2015 at 12:08 am   /   by   /   comments (0)

By Phillip Oladunjoye / Senior Correspondent


The last may not have been heard of the controversies surrounding the activities of players in the cement sub sector of the economy. The sector was embroiled in series of controversies last year ranging from the different usage of the grade of cement, which many had advocated was the primary cause of building collapses in the country.

Bags of cements

Bags of cements

This led to the formulation of new policy on the usage of cement by the Standards Organisation of Nigeria, recommending the 32.5 grade, which is more popular among the manufacturers, to be used for mere plastering, and the 42.5 grade for other purposes, while the 52.5 was to be used for heavy construction works.

The manufacturers were also pitched against each other over the pricing of the product. Dangote Group had announced that it would slash the price of cement to N1, 000, which many Nigerians had waited patiently for, but did not materialized.

Industry watchers believe that the announcement was a form of marketing strategy by the Dangote Group, noting that given the prevailing situation in the country as at that time, no manufacturer can afford to sell a 50kg bag of cement at N1, 000.

Meanwhile, the Cement Producers Association of Nigeria (CPAN) has said that the product can be sold even below N1, 000 if the sub sector is adequately sanitized.

The association has, therefore, called on the presiden- elect, General Mohammadu Buhari, to declare, at his inauguration, a change in the price of cement from N2, 200 per bag to N1, 000 per bag. This, the association said will serve as the first dividend of change, which the people of Nigeria voted for. The association lamented that the cement industry has witnessed the worst height of corruption and injustice for the past six years after the death of Late President Musa Yar’Adua.

According to a statement signed by the chairman of the association, Prince David Iweta, and made available to newsmen, Nigeria is the country with the highest price of cement in the World.

He said countries that have attained self sufficiency in cement production all over the world sell cement at N500 per bag but lamented that in Nigeria where the federal government has claimed success in the cement industry and net exporter of cement, the product is selling at N2, 200 per bag.