Investors in Nigeria’s construction sector need have no fear as the recent upward review of the quality standard of cement manufactured in the country by the Standards Organisation of Nigeria (SON) will not lead to a price hike on the commodity, Dangote Cement Plc said over the weekend.
The company said it was necessary to allay the fears of consumers that the upgrade of cement quality and the new classification of grades would affect prices, insisting that quality had nothing to do with price.
According to the Group Managing Director of Dangote Cement, Devakumar Edwin, those making such claims were doing so to blackmail the regulatory authorities into backing down on the new quality standard.
He explained in an interview with journalists that for any patriotic manufacturer with consumer interest at heart, there is no relationship between the new standard review and the price of the product except for profiteering.
To buttress his point, Edwin noted that his company started producing 42.5 grade for the past eight years at its Obajana and Ibese plants for about three years at the same with price of the lower grade of 32.5 produced by some other competitors.
According to him, the switch over to a higher quality of cement should not be a difficult process that will necessitate increase in price of the product.
The Dangote Cement boss added that his company has even gone ahead to produce the 52.5 grade of cement and that it would be uncharitable for anyone to claim that the new standard would lead to hike in the price of the product.
Edwin then pledged that much as his company would continue to cooperate with government and authorities in the regulation of the cement industry, it would ensure the price is not hijacked by profiteers.
SON, in the wake of incessant building collapse across the country and the attendant controversies on the quality of cement being produced in the country, summoned the meeting of stakeholders in the building and construction industry to ascertain the immediate and remote causes.
The meeting undertook a review of standard of quality of cement and came out with a classification of cement types and their appropriate uses as a means of stemming the suspected misapplication of the produc, which has contributed to building collapse.
SON in the new classification exercise warned members of the public to adhere strictly to the stipulated application of cement types and save the nation the embarrassment of incessant structure failures.
In the fresh review of standard, the organisation restricted the use of the 32.5 grade strength to plastering of structures only while 42.5 grade was recommended for the construction of buildings, beams, load bearing columns, pillars, block moulding and other structures and the 52.5 recommended for the construction of bigger projects like bridges, flyovers, and high rise buildings.
Edwin said the decision by Dangote Cement to embark on the high quality grade was to help Nigeria stem the tide of building collapse and commended SON for the bold move, pointing out that Dangote was ready to support the regulatory body in the onerous task of ridding the nation of structure failures.
He said: “After 28 days, the 32.5 grade gives a strength of 32.5MPA, whereas the 42.5 grade gives a curing of 42.5MPA i.e 30 per cent higher in strength.”
Edwin said that despite the high quality grade of Dangote Cement, it has not increased its price for the product and would not.
“China, the number one producer of cement in the world is phasing out the 32.5 grade by July. India, the second largest producer of cement phased out 32.5 grade cement 12 years back,” he added.
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