The price of cement in Nigerian markets is expected to decrease as a result of the implementation of a new exchange rate recommendation for customs import duties.
This move has sparked hope among Nigerians that overall commodity prices will also drop nationwide.
The Presidential Committee on Fiscal Policy and Tax Reforms, on Thursday, suggested that the federal government adopt an exchange rate of ₦800 per dollar specifically for customs import duties, a move that could stabilize the volatile import costs.
The committee chairman, Taiwo Oyedele, discussed this recommendation while speaking to journalists in Lagos on Thursday. Oyedele highlighted the challenges businesses face due to the fluctuating foreign exchange rates, which affect their ability to plan and budget effectively.
He emphasized that the current unpredictability in the FX market leads to constantly changing import duty rates, complicating financial planning for importers and ultimately affecting prices consumers pay. If the government adopts this fixed exchange rate for calculating customs duties, it could lead to lower costs for imported goods.
READ ALSO: House Committee Reports: Cement Prices in Nigeria 69% Higher than in India
Such a measure is expected to make essential goods more affordable for Nigerians, who have been grappling with inflation and rising prices. The issue of fluctuating commodity prices, such as cement, which has seen varying prices due to the unstable exchange rate, could also see more stability if the proposal is enacted.
The committee believes that locking the exchange rate for customs duties at ₦800 per dollar would benefit businesses by reducing the administrative burden and potentially lower market prices for the average Nigerian consumer.
Here are the current prices of various cement brands this week:
Price of Dangote Cement: The current price of Dangote cement varies from ₦8,000 to ₦8,500 per 50kg bag, depending on the location.
Price of BUA Cement: The retail price of BUA cement in Nigeria is between ₦6,300 to ₦7,500.
Price of Ibeto Cement: The new price of Ibeto cement in Nigeria ranges between ₦8,200 to ₦9,000.
Price of Lafarge Cement: The new Lafarge cement price in Nigeria is between ₦7,500 to ₦9,500.
Price of UNICEM Cement: The price of UNICEM Cement ranges between ₦8,500 and ₦9,000, depending mostly on the location of purchase.
Price of POP Cement: The price of POP Cement is ₦10,800.