The Minister of Industry, Trade, and Investment, Mrs. Doris Nkiruka Uzoka-Anite, has called for an extension of the gas concessions currently granted to electricity companies in favour of building material manufacturers to cope with rising prices.
This was disclosed in a statement by Uzoka-Anite at the investigative hearing by the House of Representatives Joint Committee on Solid Minerals, Industry, Commerce, and Special Duties in Abuja on Tuesday, according to Nairametrics.
The minister was represented by the Permanent Secretary of the ministry, Mr. Nura Rimi, who stressed that cement manufacturers should receive the same gas pricing benefits as electricity distributors.
Uzoka-Anite said that the recommendation was based on a recent meeting with the Minister of Works, Mr. David Umahi, and the major cement producers.
She said, “There is a need for friendly gas pricing. The meeting recommended that gas-to-power concession given to the electricity companies should also be enjoyed by the cement companies.”
She noted that cement manufacturers face several problems, including gas costs, heavy import duties on used parts, poor road networks, low foreign exchange rates, and the smuggling of cement to neighbouring countries.
She highlighted the effects of high cement prices around the country.
It was unanimously agreed at the hearing that retail prices of cement should not exceed N8,000 per 50kg bag, depending on where it is located and a price monitoring mechanism must be set up by manufacturers to ensure compliance.
Manufacturers have committed themselves to implementing the mechanism and sanctioning distributors or retailers who didn’t comply.
She stated that Nigeria is self-sufficient in cement production, with key players such as Dangote Industries Ltd, BUA Group, and Lafarge Holcim producing enough for export.
In addition, She said the Ministry was discussing ways of reintegrating cement companies that had stopped construction activity, understanding their challenges, and finding a way to bring them back into the industry.
Meanwhile, the Chairman of the House of Representatives committee, Rep. Gaza Gbewfi noted that cement manufacturers complained about road conditions, considering that their activities also contribute significantly to the deterioration of roads, and pointed out that it is a corporate responsibility for cement companies to ensure its maintenance.
Gbewfi called on the Ministry to make available minutes of its meetings with cement manufacturers, a complete list of pioneer status that has been issued to companies since their inception, and an incentive matrix for them.
A new base gas price has been set by the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, for companies in the power sector and for commercial users such as cement producers, this year.
For companies in the power sector, the new base gas price was set at $2.42 MMBTU while commercial users would pay a higher price at $2.92 MMBTU.
