Dangote Cement has urged the federal government to invest more on infrastructure to enable? it absorb its anticipated increase in cement production.
Special Assistant to Alhaji Aliko Dangote on cement,Mr Joseph Makoju,? made the call in an interview in Lagos.
He said that with the commissioning of a six million metric tonnes cement plant, the country would have enough cement to meet local demand.
According to him:? “There may even be surplus of cement in the country before December 31, 2012. With all these new capacity, there could be a glut out of the excess production.Government has a big part to play because they are the biggest consumer of cement, especially in public works and construction.
“So government needs to really invest more in infrastructure development, especially civil infrastructure like roads and bridges.’’
Makoju said that the new production capacity would eventually bring down the price of?? cement in the long run. According to him, the forces of demand and supply would reduce the price of? the commodity, though it would not be immediate as other factors could make the price to jump.
He said, however, that when there? is excess supply, the market forces would bring down the price.
“I agree that market price needs to come down. Factory cost at the moment is about N1,500 maximum per bag. With this increasing production, I am sure Nigerians will be expecting to see the price of cement come down.
“That period is not far off and when it comes, I am very confident that it will start impacting on market prices.’’
He said that stakeholders in the cement industry were promoting to all tiers of government, the idea of using cement in road construction in the country.