Federal Government and Cement Manufacturers Meet Over Escalating Price of Cement, Brainstorm on Challenges Facing Cement Manufacturing, Agree on a Price Range of N7,000- N8,000/ 50 Kg Bag   1.  The Federal Government has agreed with the cement manufacturers on the modalities to tackle the escalating price of cement in Nigeria. This was the outcome of the meeting of the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi GON the Honourable Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, the cement manufacturers and the Cement Producers Association. The meeting held closed door at the office of the Honourable Minister of Works. Mabushi, Abuja, had in attendance, the representatives of Dangote Cement Plc, BUA Cement Plc, Larfage Africa Plc and Cement Producers Association.   2.  In their separate remarks, the Honourable Minister of Works said the meeting was aimed at addressing the concerns of Nigerians on the escalating cost of cement in Nigeria marked by the disparities between the ex-factory price and the market price of cement. He expressed hope that the meeting would proffer enduring solutions to the unabating increase in cement price.   3.  Also in her remarks, the Honourable Minister of Industry, Trade and Investment said it was worrisome that the price of cement was surging despite her Ministry's regulatory policies and the Backward Integration Programme (BIP) introduced to manage cement price and development, and expressed surprise that the whole idea of the BIP on the management and development of cement manufacturing industry is not bearing the desired fruit.   4.  A communique was issued after the meeting and was read by the Honourable Minister of Works as contained in the appendix hereunder. The two Honourable Ministers also used the opportunity to re-assure Nigerians that the Renewed Hope Administration of His Excellency, President Asiwaju Ahmed Bola Tinubu, GCFR is committed to addressing the economic challenges facing the country and shall leave no stone unturned in addressing the escalating prices of commodities, including the price of cement in Nigeria.   5.  Confirming the communique as the true reflection of their deliberations, the spokespersons to the cement manufacturers and the Cement Producers Association thanked the two Honourable Ministers for their  sense of devotion to the  cause of national development and expressed their confidence  in the timely  intervention  of the Federal Government  to the  challenges facing cement manufacturing in Nigeria. The spokesperson of Dangote Cement Plc and GMD/CEO, Mr Arvind Pathak added, "the Honourable Ministers gave us a kind hearing, and we have agreed for a window of 30 days in which we re-assemble and see how best we can move on that." The spokesperson of BUA Cement Plc and Group Executive Director, Mr. Kabiru Rabiu said. "And another thing that I need to also add is that BUA is committed to bringing an additional 6 million tons of cement in the next few weeks, and that will seriously dampen the pressure of supply in the market, and we will continue to commit to this engagement." The spokesperson to Lafarge Africa Plc and Commercial Director Mr. Gbenga Onimowo said " it was very timely, honestly, listening towards the challenges that we all face as manufacturers, I think we appreciate that, and we do look forward to the solutions coming, the support they're going to give within the next coming days."   The President of Cement Producers Association, Prince David Aweta, added. "I am actually here to advocate for the six other players to join in the industry because practically, we can feel that the operators in the cement industry at the moment are so few and that is why we are having this perennial problem of cement hikes particularly during dry seasons."   DETAILS OF THE COMMUNIQUE  Meeting of Cement Manufacturers – Dangote Cement Plc, Bua Cement Plc, Larfarge Africa Plc & Cement Producers Association with the Honourable Minister of Industry, Trade & Investment, Dr. Doris Uzoka-Anite and the Honourable Minister of Works, Sen. Engr. Nweze David Umahi, CON Held at the Office of the Honourable Minister of Works, Mabushi, Abuja on Monday, 19th February, 2024 1. The meeting noted the challenges of the manufacturers like:     a.    Cost of gas;     b.    High import duty on spare parts;     c.    Bad road network;     d.    High foreign exchange; and     e.    Smuggling of cement to neighbouring nations. 2.    The government noted the challenges and reacted as follows: a.    Federal Ministry of Industry, Trade and Investment to seek some remedies from Mr. President on cost of gas and import duties. b.    Federal Ministry of Works to give more attention to fixing of the roads, especially around the locations of the manufacturers. c.    On the issue of smuggling cement, the Federal Ministry of Industry, Trade and Investment to deepen the already started engagement with the National Security Adviser on how to stop the smuggling. 3.     The cement manufacturers and the Government noted that the current high price of cement is abnormal in some locations nationwide.  Ideally, cement retail prices should not cost more than ₦7,000.00 to ₦8,000.00/ 50kg bag of cement.  Therefore, the three cement manufacturers: Dangote Cement Plc, BUA Cement Plc and Larfarge Africa Plc have agreed that cement cost will not be more than between ₦7,000.00 and ₦8,000.00/50kg bag depending on the location.  4.    Going forward, Government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, and manufacturers have willingly accepted to do so and to sanction any of her distributors or retailers found wanting. 5.    Government expects the agreed price to drop after securing government's interventions on the challenges of the manufacturers on gas, import duty, smuggling, and better road network. 6.    The meeting agreed to reconvene in 30 days to review progress made. ...

Umahi Gives Termination Notice to Contractor Handling a Section of Enugu-Port Harcourt Highway for Non-Performance ....Minister commends President Tinubu for funding highway rehabilitation, construction projects. The Honourable Minister of Works, Sen. Engr. Nweze David Umahi, CON, has directed that 14 days termination notice be issued to Messrs. China Civil Engineering Construction (CECC) which is handling the Abia Section of Enugu-Port Harcourt Highway currently undergoing rehabilitation for reason of non-performance.   The Honourable Minister gave the directive this Sunday when he inspected the progress of work at Ozuaku, after Imo bridge along Enugu- Port Harcourt expressway.   According to Sen. Umahi “I've just directed that they should issue them 14 days termination notice using all due process on construction. After 14 days, if they fail to do what we have asked them to do, then we will have to do the termination notice.”   Adding “We will no longer tolerate the situation where contractors will put blank ranks on site. And they will be escalating construction costs by delaying the completion of project date.”   Continuing, he said “and we have reached an agreement in Ministry of Works that in the coming weeks, all non-performing contracts using due process will be terminated and re-awarded.”, he disclosed.   The Honourable Minister explaining the reason why contractors should demonstrate commitment said, “We let them know the suffering of Nigerians. We are here to help them, and we will do everything to help them,” he stressed.   Sen. Umahi then observed that “the cost of non-completion of this project has a lot to do with contractors. Where contractors stay on projects over and over and be pretending, thereafter, they come to request for augmentation every year refusing to leave the site.”   He however assured that “we will force them out of site either on the terms of completion or on the terms of termination.This is what we are going to do.” Stressing the imperative for the Ministry to deliver quality and good highways to Nigerians, the Honourable Minister averred that “it is very important to appreciate all the efforts of Mr. President who has been providing funds for our road infrastructure projects; which is very, very good.”   Sen. Umahi added that despite over 3,000 road projects inherited by this administration, President Tinubu must be commended for providing huge resources for our road network stating, “so it's kudos to Mr. President and it shows that Mr. President is very, very sensitive to our road infrastructure needs. And so we must do everything to support the Renewed Hope Agenda of Mr. President, irrespective or notwithstanding any blackmail,” he declared.   Meanwhile, the Honourable Minister has lauded Arab Contractors, the contractor carrying out the ongoing rehabilitation of work on the 56km Abia State section of the Enugu -Port Harcourt highway for quality of work done with words of encouragement.   He said “the moment a contractor is performing very well, then you are a friend and that's the bottom line,” he submitted.   In the same vein, the Honourable Minister has described as excellent the job performance of Messrs CGC Nig. Ltd handling Enugu State axis of the dual carriage after his inspection of the roads.   While commending the contractor, consultant and the Controller of Works for job quality, Sen. Umahi praised the contractor for the quality of work and equipment, while requesting that  the ongoing work on one section of the highway must be completed by middle of March as agreed. ...

President Tinubu Directs Works Minister to Interface with Cement Manufacturers Over Increase in Price   .....Umahi re-inspects Contractor’s work on East-West Road.   President Bola Tinubu has directed an immediate interface with major cement manufacturers in the country over rising price of cement, says the Honourable Minister of Works, Sen. Engr. David Umahi, CON.   Speaking to journalists Saturday after the latest round of inspection section 3 of the ongoing rehabilitation of East-West highway, the Honourable Minister disclosed that President was seriously concerned with current situation of increase in cement prices.   Sen. Umahi observed about the current price of cement that “some are still selling sometimes, you know, 10,000 naira sometimes 12,000 naira; and so, on and so forth.” He added that “So it's not healthy for us. So, Mr. President has directed that we should interface with them, look at their problems, and then see who is, you know, ripping off Nigerians and see how we can help them, the transporters and then the manufacturers.”   “And that's what we're going to do on Monday,” in the meeting with Dangote Plc, BUA Plc, Lafarge Plc and others.   While commending the level of work on the East-West highway, he informed that “our job as a ministry is to encourage the contractor to do a good job according to design and according to the expectation of Nigerians.”   Continuing, he noted the impact of new engineers deployed by the Contractor, “he is a very well qualified, registered engineer. And we have met on other projects and technically he is very good. So, I am very happy for that.”   On the need to expedite work on the project, the Honourable Minister said “there is an increase in the number of sections that we are working on, because of how urgent this job is, we should have more sections. They have opened about five sections. We should have almost all the sections being worked upon.”   Commenting on the percentage of work done by the Contractor, the Honourable Minister said “well, we can't talk in terms of percentage. If we get all the quality jobs like this, then I'll go to sleep, because this is the major.”   According to him, “the foundation of every structure is more important than the structure itself. So, we are more interested in getting this done.   “When this is done, to lay the concrete, it's not going to be difficult at all. But this is the most difficult.”   He assured that the coming of rains should not be a stumbling block to the progress work, noting that a different design would be deployed, “and that's what we are doing in a lot of our interventions on the East-West Road.”   Sen. Umahi used the opportunity to reiterate that the tax credit scheme is still continuing saying “it is very obvious, and we've said it, you know, that the President never stopped any of the project, not NNPCL tax credits. He never.”   “In fact, he has also, based on the first module, given approval that we can review the projects,” he stressed.   The Honourable Minister however emphasized that “we are bound to review it. And we've started reviewing it. And we've reviewed this one. Fortunately for us, the contract of this one has not increased, even though we have redesigned it”.   Earlier, the Honourable Minister, Sen. Umahi attended Senator Barinada Mpigi’s thanksgiving service held in his hometown, Okoroma in Tai Local Government Area of Rivers State. Senator Mpigi represents South-East senatorial zone of Rivers State in the Senate. ...