The Cement Producers Association of Nigeria has issued a warning that the federal government’s plan to introduce concrete roads may lead to a significant increase in the price of cement, raising it from the current price of N5,000 per bag to N9,000 per bag.
The association expressed its support for the use of cement in road construction, as suggested by the Minister of Works, but cautioned that a lack of proper planning and supply could result in dire consequences for cement prices.
In their statement, the association called on the government to address the perennial issue of cement price hikes and facilitate increased participation in the cement industry. They emphasized that Nigerians should not be paying more than N5,600 per bag for cement.
To mitigate the potential price increase, the cement producers recommended that the government focus on road design that allows for both cement technology and asphalt pavement to be used concurrently. This approach would provide ample time for contractors to invest in the necessary equipment and retooling.
The association also called for the regulation of static and dynamic load traffic on highways by introducing weighbridges at access points, working in collaboration with relevant ministries.
Additionally, they urged the government to conclude the backward integration policy initiated during the late Yar’adua administration to improve the availability and affordability of cement in the country.
The association called for greater policy harmonization and convergence between fiscal and monetary policies, emphasizing the need for government intervention in the foreign exchange market and the restructuring of bad loans for manufacturers.
The warning from the Cement Producers Association highlights the potential challenges and price implications associated with major infrastructure projects and the importance of careful planning and coordination in the construction industry.
