Dangote finally teams up to crash cement price

DDM News

Aliko Dangote and Abdulsamad Rabiu, two of Nigeria’s most influential industrialists, have united to stabilize cement prices.

Diaspora Digital Media (DDM) reports that this collaboration comes under the Federal Government’s Renewed Hope initiative, aimed at reducing economic hardship and housing deficits.

The partnership will ensure that cement prices remain fixed for all contractors executing government-backed housing and infrastructure projects.

This price freeze is expected to significantly lower construction costs under projects like Renewed Hope Cities and Renewed Hope Social Housing.

As part of the agreement, the duo committed N20 billion annually to train skilled workers in Nigeria’s construction industry.

Each bag of cement will effectively see a reduction of about N30, according to details sourced from BusinessDay.

Dangote proposed the initiative, which Rabiu confirmed and embraced, stating it aligns with President Bola Tinubu’s broader development agenda.

“We’ve decided to support Mr. President’s Renewed Hope vision by freezing cement prices for associated projects,” Rabiu disclosed to State House journalists.

He emphasized that this move is a strategic national sacrifice to alleviate housing shortages and economic distress among Nigerians.

Letters will be sent to all relevant ministries and agencies to formally communicate this pricing commitment.

Rabiu also praised Minister of Works, Dave Umahi, for pushing the adoption of concrete roads, which he said are cheaper and more durable than asphalt.

This shift to concrete roads is a strategic choice by the Tinubu administration to enhance infrastructure sustainability.

To ensure the success of this new direction, Engineer Yusuf Binji of BUA Cement has been appointed chairman of the Cement Manufacturers Association of Nigeria (CEMAN).

Binji will oversee distribution and pricing, ensuring cement supplied for Renewed Hope projects remains affordable and stable.

Rabiu noted that CEMAN will be restructured to align with the government’s developmental priorities and cement demand.

The Cement Technology Institute will also be revitalized to support industry innovation and manpower development.

This collaboration, stakeholders say, marks a rare alliance between rival tycoons for national interest.

Training programs will target artisans in construction trades to strengthen capacity and create employment across the country.

In a related development, President Tinubu has ordered cement manufacturers, including BUA and Dangote, to revert to former pricing levels.

Senator David Umahi, Minister of Works, confirmed this directive during a factory inspection in Sokoto.

He said the president’s intervention aims to cushion citizens from the adverse effects of fluctuating cement costs.

Tinubu’s call came amid public concerns over high building material costs and the housing crisis plaguing millions of Nigerians.

Observers believe this new pricing strategy could fast-track the delivery of low-cost homes under federal projects.

This policy shift also aligns with the administration’s push for local materials in infrastructure development.

Construction sector experts have lauded the move as a game-changer for national housing and employment generation.

By freezing prices and investing in skills, Dangote and Rabiu have turned industry rivalry into patriotic partnership.

Their commitment to affordable building materials is seen as a vital support system for Tinubu’s social agenda.

Analysts warn, however, that long-term sustainability depends on resolving supply chain bottlenecks and energy costs in cement production.

The current collaboration echoes similar calls for sector-wide reforms and inclusive economic strategies.

It remains to be seen how quickly these efforts will translate into reduced housing costs for ordinary Nigerians.

The federal government has expressed optimism that concrete outcomes will emerge in the coming months.

Both Dangote Cement and BUA Group are expected to play leading roles in this new infrastructure phase.

This development also signals a renewed engagement between government and private sector players to tackle key national challenges.

Diaspora Digital Media (DDM) will continue monitoring the implementation of this joint agreement and its impact on citizens.

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