VenturesNow

Nigerian govt summons manufacturers over rising cement prices

Published

9 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

Click to comment

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

23 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.