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Addressing Cement Pricing: Block Moulders Seek Lower Import Duties
Addressing Cement Pricing: Block Moulders Seek Lower Import Duties
In a bid to tackle the soaring prices of cement in Nigeria, the National Association of Block Moulders of Nigeria (NABMON) has recently called upon the Federal Government to reconsider the import duties imposed on cement production materials. The appeal, spearheaded by Mr. Adesegun Banjoko, the National President of NABMON, seeks to create a favorable environment for foreign investment, resulting in a reduction in the country’s exorbitant cement prices.
The current market scenario, where the cost of a cement bag in Nigeria ranges between N7,000 and N8,000, has raised concerns among industry stakeholders, labeling it as overly expensive. Despite governmental threats to open borders to enhance supply, the anticipated reduction in prices has not materialized, prompting NABMON to advocate for a more strategic approach.
Mr. Banjoko emphasized the necessity of reducing import duties on essential components utilized in cement manufacturing, as well as encouraging increased participation from global investors within the sector. By creating a more competitive landscape, NABMON believes that market forces can play a pivotal role in determining fair prices for cement, benefiting both consumers and industry players alike.
Furthermore, the association highlighted the pressing need to curb the illegal smuggling of cement to neighboring countries, a practice that undermines domestic market stability. Drawing a comparative analysis with South Africa, where the ratio of cement factories to population is significantly higher, NABMON underscored the urgency to expand Nigeria’s production capacity to meet burgeoning local demands and potentially explore export opportunities.
Mr. Banjoko expressed optimism regarding ongoing research initiatives aimed at discovering alternative materials for cement production within Nigeria. By leveraging the collective expertise of research institutes and universities, the industry anticipates the emergence of cost-effective, high-quality cement formulations, along with innovative solutions for other construction materials.
It is worth noting that earlier this year, the Federal Government and cement manufacturers reached a consensus in Abuja to maintain the price range of a 50-kg bag of cement between N7,000 and N8,000. However, manufacturers have cautioned that the sustainability of this price reduction hinges on the government’s fulfillment of its commitments. Addressing industry-specific challenges remains paramount for ensuring the continued affordability of cement for consumers across the nation.
Finally, NABMON’s proactive stance emphasizes the need for collaborative efforts to address cement industry pricing disparities. By fostering a conducive regulatory framework, promoting investment inflows, and prioritizing research and innovation, stakeholders can pave the way for a more sustainable and competitive market landscape, ultimately benefiting both the industry and the Nigerian populace at large.
