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The National Association of Block Moulders of Nigeria (NABMON) has urged the Federal Government to reduce import duties on cement manufacturing components to attract more foreign investment in the sector.
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The National President, NABMON, Adesegun Banjoko, advised in a statement issued, yesterday, in Lagos.He said that the price of one bag of cement in Nigeria, currently in the region of N7,000 and N8,000, is still considered too expensive.
The News Agency of Nigeria recalls that the Federal Government and cement manufacturers had, in February, in Abuja, agreed on a N7,000 to N8,000 price range for one bag of 50 kg cement.
However, cement manufacturers said that the cement price reduction wasn’t guaranteed, indicating that the sustainability of the price decrease was dependent on the government following through on its promises to address certain industry challenges.
Banjoko, in a statement, said that the threat by the government to open up the borders to increase supply had also not brought down the prices. He said: “Of recent, the issue of our key raw material, cement, was on the front burner nationwide, and the dust is yet to finally settle as far as we are concerned because the N7,000 to N8,000 offer is still on the high side.
“The government has threatened to open the borders to increase supply. Please, also reduce import duties on imported components for manufacturing cement, and also invite more global investors into the sector so that the market can determine fair prices.”
The NABMON President also advised the government to discourage cement smuggling to neighbouring countries. Banjoko said that Nigeria had a larger population and presumably a higher demand for cement, yet it trails South Africa in production facilities.
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