The Cement Producers Association of Nigeria has sent a letter to President Bola Tinubu, calling for an end to the monopoly in cement production and distribution. The association emphasizes the need for more inclusive participation of companies with verified local investments in the cement sector.
In the letter, signed by National Chairman David Iweta and co-signed by National Secretary Reagan Ufomba, the association highlights Nigeria’s high cement prices, attributing it to the industry’s inability to meet demand effectively. They assert that cement, a crucial component for infrastructure development, housing, and revenue generation, should be reasonably priced.
CEPAN draws attention to the substantial profit margins of over 300 percent for the three major cement plant owners in Nigeria, contrasting this with developed economies like Switzerland, China, Mexico, Taiwan, and India, where profit margins range from 13 to 17 percent. They urge the government to revisit the backward integration policy initiated by the late President Umar Yar’Adua, which could help the sector meet growing demands.
The association calls on President Tinubu, in collaboration with the Ministries of Industry, Trade and Investment, and Finance, to dismantle the existing monopoly and broaden participation for those with legitimate local investments in cement and related interests.
Furthermore, the association demands an investigation into the utilization of the N13.2 billion Cement Technology Funds, currently held by the Bank of Industry. This fund, initiated during Yar’Adua’s administration, was intended to support infrastructure and stabilize cement prices nationwide. The association seeks transparency and accountability in the allocation of these funds.