Nigerian Cement Producers Warn of Price Hike Due to Government’s Concrete Road Plan

The Cement Producers Association of Nigeria (CPAN) has warned that the federal government’s plan to introduce concrete roads will raise the price of cement from N5,000 to N9,000 per bag.

In a statement signed by its national chairman, Prince David Iweta, and national secretary, Chief Reagan Ufomba, CPAN urged the government to take proactive steps to address the issue of cement supply.

The association said that cement prices are already high, with a bag selling for as much as N6,000 in some parts of the country during the rainy season. It predicted that the price could rise to over N9,000 per bag in the dry season if the government does not intervene.

CPAN called on the government to lay more emphasis on road designs that allow both cement technology and asphalt pavement to run concurrently. It also called for the regulation of static and dynamic load traffic by introducing weighbridges at access points on highways.

The association also urged the government to conclude the backward integration policy of the late President Umaru Yar’Adua, which was already bringing availability and affordability of cement in the country.

CPAN said that Nigeria needs cement that is available and affordable, and this cannot be achieved by mere wishes, faulty policies and programmes, without breaking the chain of monopoly and favouritisms.

The association called on the Tinubu government to permanently solve the perennial cement price hike problem by expanding participation in the sector with companies who have verifiable evidence of local investment, including greenfield licenses and quarrying.

Finally, CPAN called on the government to urgently intervene in the foreign exchange market, intervene in restructuring bad loans of manufacturers, and review palliative modules.

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