Nigeria's Strategy to Lower Cement Prices Explained

Nigeria has significant limestone deposits and cement production capacity; however, high cement prices burden builders and households. Trade expert Dr. John Isemede emphasizes the need to address factors affecting costs from production to consumer delivery.

He advocates for reducing manufacturing costs by improving electricity supply and creating a stable environment for manufacturers. Additionally, he highlights the importance of efficient transportation systems, including roads and rail networks, to lower costs associated with moving cement.

Isemede suggests eliminating unnecessary checkpoints and fees that inflate prices for consumers. He also points out that manufacturers face various taxes and charges that increase production costs, recommending a streamlining of these levies.

Furthermore, he encourages Nigeria to leverage regional markets through the African Continental Free Trade Area (AfCFTA) and the ECOWAS Trade Liberalisation Scheme to enhance sales and efficiency. Ultimately, making cement more affordable will depend on reducing production and distribution costs.