The National Association of Block Moulders of Nigeria (NABMON) has called upon the Federal Government to consider reducing import duties on components used in cement manufacturing to attract increased foreign investment into the sector.
Mr. Adesegun Banjoko, the National President of NABMON, issued this plea in a statement released on Monday in Lagos, emphasizing that the current price range of one bag of cement in Nigeria, which stands between N7,000 and N8,000, remains prohibitively expensive.
Notably, in February, the federal government and cement manufacturers had agreed on a price range of N7,000 to N8,000 for one bag of 50 kg cement in Abuja. However, manufacturers cautioned that the reduction in cement prices was not assured, with the sustainability of the price decrease contingent upon the government’s commitment to addressing certain industry challenges.
Banjoko highlighted that the government’s threat to open borders to boost supply has not yielded desired results in lowering prices. He urged the government to not only reduce import duties on components essential for cement manufacturing but also to attract more global investors to the sector, allowing the market to determine fair prices.
Furthermore, Banjoko advised the government to take measures to curb cement smuggling to neighboring countries. Despite Nigeria’s larger population and presumed higher demand for cement compared to South Africa, the country lags behind in production facilities, with only three cement factories compared to South Africa’s 15, despite its population being three times smaller.
To address this disparity, Banjoko suggested investing in the establishment of more cement factories to meet domestic demand and potentially become an exporter.
Expressing optimism, Banjoko noted ongoing research efforts aimed at finding alternative materials for cement production in Nigeria. He commended the collaborative efforts of research institutes and universities in innovating cheaper, quality cement and other building materials sourced locally.
