Cement Producers Urge Tinubu to End Monopoly as Nigeria Records World’s Highest Cement Prices
*In a recent statement, David Iweta, the National Chairman of the Cement Producers Association of Nigeria (CEPAN), highlighted Nigeria’s decade-long status as the country with the world’s highest cement prices. Iweta emphasized the need for an additional seven to 10 million metric tonnes per annum to meet rising local demand, driven by increased housing and infrastructure construction.*
*Iweta called on President Bola Tinubu to break the monopoly in cement production and distribution by allowing new players to enter the market. He stressed that the industry’s inability to meet demand was a key factor contributing to the elevated price of cement in Nigeria. Iweta proposed the inclusion of companies with verifiable local investments in cement within the participation scope, urging the government to encourage new entrants by granting licences for limestone exploration and local production.*
*According to Iweta, the government should update and extend quarry licenses that were initially granted for local cement production. He suggested that this approach would allow the industry to bridge the current supply gap, especially considering the current production capacities of major players like Dangote (17mmts), BUA (10mmts), and Lafarge (7mmts). Iweta emphasized the need for an additional 10mmts to meet the growing demand for cement in the country.*
*The statement also underscored that while imported cement might be used as an interim solution to fill the supply gap, the long-term focus should be on encouraging local production to address the price disparity Nigeria faces compared to other countries.*
