adplus-dvertising
Business

Block Moulders Association calls for lower import duties for fair prices of cement

The National Association of Block Moulders of Nigeria (NABMON) has appealed to the Federal Government to lower the import taxes on cement production materials to increase foreign investments and reduce the price of cement in the country.

Mr. Adesegun Banjoko, the National President of NABMON, issued this statement on Monday in Lagos.

He stated that the pricing of a cement bag in Nigeria, presently between N7,000 and N8,000, is regarded as too costly.

Banjoko said the threat by the government to open up the borders to increase supply had also not brought down the prices.

  • “Of recent, the issue of our key raw material, cement, attracted front burner attention nationwide, and the dust is yet to finally settle as far as we are concerned because the N7000 to N8000 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’”, he said.

Moreover, the president of NABMON also recommended that the government take measures to prevent the smuggling of cement to neighboring countries.

Banjoko observed that despite Nigeria’s larger population and presumably greater cement demand, its production facilities fall short compared to South Africa’s.

He said the need to invest in building more cement factories to meet the country’s domestic needs and become a potential exporter.

  • “South Africa, with a population of 60million, has 15 cement factories, and Nigeria with a population three times larger has only three cement factories, then there is still much work to be done,” he said.

Banjoko, therefore, expressed optimism that ongoing research efforts would find alternative materials for cement production in Nigeria.

  • “It is, however, heart-warming to our awareness that all hands are currently on deck at our research institutes and universities on cement innovations research.
  • “This is with a view to finding locally sourced alternative materials for cheaper, quality cement and even other building materials,” he added.

What you should know

Earlier in February, the he federal government and cement manufacturers came to an agreement in Abuja on setting the price of one 50 kg bag of cement between N7,000 and N8,000.

  • However, cement manufacturers have said that the reduction in cement price is not guaranteed.
  • They added that the continuity of the price decrease hinges on whether the government fulfills its commitments.
  • These commitments involve tackling specific challenges within the industry, which the manufacturers believe are essential for maintaining the lower price range.

Follow us for Breaking News and Market Intelligence.
play store banner
app store banner
whatsapp banner
telegram banner

Back to top button