The three major cement producers, Dangote Cement, Lafarge, and BUA Cement have reached an agreement with the Federal Government to supply cement at discounted prices, Nairametrics reports.
This was disclosed by Mr. Laolu Akande, the Senior Special Assistant, Media & Publicity to the Vice President during an interview.
According to Nairametrics, Akande said this with reference to the social housing programme under the Economic Sustainability Plan (ESP), which is an intervention programme to deal with the fallout of the Covid pandemic.
What Akande is saying
Akande said that with the ESP the government wants to create 5 million solar connections all across the country and build 300,000 houses under the social housing programme.
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He said, “The ESP is coordinated by the Family homes fund which is a limited liability being supervised by the Minister of Finance, while the Government is bringing the funding. They have built over 8000 of such houses in Borno state. The FG has also had discussions with the three big cement companies, Dangote, Lafarge, and BUA to supply cement at a discounted rate and they have agreed.”
He also stated that 22 state governments have committed to giving land for the implementation of the fund under the sustainability plan.
What you should know
In January 2021, the Federal Government and cement manufacturers reached an agreement to supply cement at discount price, in a bid to ensure the success of the Social Housing scheme where the Buhari administration will construct 300,000 houses under the Economic Sustainability Plan (ESP).
During the previous year, cement prices rose as a result of inflationary pressures, as well as, rising cost of materials, rising prices of gas, and, cost of distribution, from around N3,200 in January 2021 to around N4,600 in December 2021, representing a price appreciation of 44%.
In Q3 2021, the trio giant cement companies, raked in a combined revenue of N469 billion in the third quarter, a 5.27% decrease when compared to the N495 billion reported in the previous quarter.