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Nigerian govt summons manufacturers over rising cement prices

Published

10 months ago

February 17, 2024

The Nigerian government has called for an urgent meeting with cement manufacturers following a recent surge in the price of the product, which has seen a bag of cement jump from N5,000 to as high as N15,000 in less than two weeks.

In spite of the fact that road and housing contractors heavily patronise these cement makers, the government is concerned about the rising cost of cement, according to a statement made by the minister’s media adviser, Orji Uchenna Orji.

The government will investigate the difficulties experienced by these cement producers as well as the significant discrepancy between the ex-factory price and the market price, according to Minister of Works Dave Umahi, who called the meeting with major producers—Dangote, BUA, Lafarge, and other cement makers.

A few days prior, Arc. Musa Dangiwa, Minister of Housing and Urban Development, had expressed disapproval over the skyrocketing cost of cement and other building supplies nationwide. He declared that the price increase was intolerable and maintained that the current state of affairs in that industry could not be attributed to changes in the value of the dollar.

According to Orji, the Minister was quoted as saying, “Worried by the escalating cost of cement despite huge patronage by road and housing contractors to cement manufacturers, the Honourable Minister of Works, His Excellency Sen. Nweze David Umahi CON, has summoned an urgent meeting of all cement manufacturers in Nigeria.’’

Umahi said, “It is common knowledge that the manufacturers have their challenges, which we shall look into, but from our findings, the disparity between the ex-factory price and the market price is wide.

“We therefore need to look into the situation and other issues with a view to finding a common front.”

Nigeria is experiencing its worst cost of living crisis following the withdrawal of petrol subsidies, the devaluation of the exchange rate, and low agricultural production in the nation, all of which contributed to Nigeria’s highest headline inflation rate of 27% year over year and food inflation of 32%. With the recent rise in the price of cement, there appears to be a fresh dimension to the crisis amidst the country’s enormous housing deficit.

Related Topics:Bua Cement Dangote Featured Lafarge Nigeria

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IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

3 hours ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

VenturesNow

Libya’s eastern govt accepts petrol subsidy elimination

Published

3 hours ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.