CEMENT PRICE: Nigerian Lawmakers Summon Dangote, BUA, Others

CEMENT PRICE: Nigerian Lawmakers Summon Dangote, BUA, Others

Save Our Nation SON

March 13, 2024 

The House of Representatives has summoned the major cement manufacturers over the spike in the price of the product in the country.

The summon followed a motion jointly moved by Gaza Gbefwi (SDP, Nasarawa) and Ademorin Kuye (APC, Lagos), during plenary on Wednesday.

The manufacturers are to appear before the entire House to brief the lawmakers on the ‘arbitrary increase in cement price’.

Moving the motion, Mr Gbefwi said there is no reason for price increment because most of the input used for the manufacturing of cement, like lime, silica, alumina, iron oxide, and gypsum — are all sourced locally and not affected by exchange rate volatility.

The lawmaker claimed that all factors of production and “elements of the cement production flow chart are also sourced locally and have not changed significantly year-on-year”.

He said cement producers are “capitalising on exchange volatility to arbitrarily increase the price of the product, whose cost of production has not changed significantly since last year,” adding that “the cement cabal is unconscionably inflicting hardship on Nigerians as the prices of rent and associated services have increased.”

“The increase is a direct affront and sabotage of President Bola Ahmed Tinubu administration’s effort to bring comfort to the populace and should be resolved immediately,” Mr Gbefwi added.

Speaking in support of the motion, Aliyu Madaki (NNPP, Kano) said the “arbitrary” price increase by manufacturers is nothing but “corruption and abuse of power”.

He added, “We must not allow few individuals to control the economy.”

Also speaking in support of the motion, Sada Soli (APC, Katsina) countered the argument of monopoly in the cement manufacturing sector, noting that the sector is already liberal.

Consequently, the House mandated the Committees on Solid Minerals Development, Commerce, Industry and Special Duties to investigate the “arbitrary” increase in the price of cement by manufacturers and report back in four weeks.

The lawmakers voted overwhelmingly for the adoption of the motion when it was put to voice vote by Speaker Abbas Tajudeen.

However, the House has yet to schedule a date for their appearance.

In the past couple of months, the price of cement has continued to rise across the country, selling for as much as N13,000 in some states.

Two weeks ago, major cement manufacturers in Nigeria, Dangote, BUA and Lafarge reached an agreement with the federal government to peg the price of a bag of cement between N7,000 and N8,000.

The resolution was reached following a meeting between the Minister of Works, David Umahi, the Minister of Industry, Trade and Investment, Doris Uzoka-Anite as well as representatives of BUA Cement, Dangote Cement, Lafarge and Cement Producers Association.