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Blame high price of cement on bad roads and fuel subsidy removal – CMAN

By on September 28, 2012

Cement Ready for Sales

Cement production capacity has improved over the last year and local production is likely to hit 17 million tons before the end of this year. Chairman of the Cement Manufacturers Association (CMAN), Mr Joseph Makoju in his address yesterday in Calabar, the Cross River State capital stated that, the production of cement has increased from 2 million tons in 2002 to 13 million last year.

 

Makoju said their primary focus now is beyond producing enough cement for consumers in Nigeria but to build human capacity in the industry as well as develop the export market in the nearest future.

He said, “Very soon Nigeria will soon be exporting cement to neighbouring countries, just as it is doing with crude oil.

 

“For the first time in Nigerian history there has been no cement import since the beginning of the year, because the local cement companies have been able to rise up to the challenge hence there has been no scarcity. “As at today, daily production of cement is even in excess of sales and they are in the process of formalizing the exportation cement to Economic Community of West African States (ECOWAS) and neighbouring countries,” he added.

 

The Chairman however, ascribed the high price of cement produce in some areas of the country to bad state of the nation’s roads. He advised consumers to be patient irrespective of the price as CMAN was talking to government about spending more on road and rail network as the focal point of the association is making cement available and affordable.

 

The Chairman stated that they are proposing the establishment of Cement Technological Institute that will help in the area of human capital expansion.

In conclusion, he called on the government to subsidize fuel for greater efficiency in the production and distribution chain. That because their plants are not close to gas pipelines, they choose fuel against gas, which is cheaper; they resort to fuel, which is more expensive.