- The legislative body has tasked its Committees on Solid Minerals Development, Commerce, Industry, and Special Duties with investigating the surge in cement prices nationwide
The House of Representatives made a resolute move on Wednesday, inviting key cement manufacturers, including industry giants Dangote and BUA, over hike in cement price.
The legislative body has tasked its Committees on Solid Minerals Development, Commerce, Industry, and Special Duties with investigating the surge in cement prices nationwide.
This action stemmed from a motion presented by Hon. Gaza Jonathan Gbefwi and Hon. Ademorin Kuye during a plenary session in Abuja.
Lawmakers raised concerns over a drastic spike in cement prices, soaring by up to 50%, which has substantially inflated building costs, construction expenses, and consequently, rental prices across the country.
During the motion, attention was drawn to the local sourcing of raw materials for cement manufacturing, such as lime, silica, alumina, iron oxide, and gypsum, insulating the industry from exchange rate fluctuations. Moreover, stable production factors and elements in the cement production process over the years cast doubt on the justification for price hikes.
Hon Gbefwi voiced deep concern over the perceived exploitation of exchange rate fluctuations by manufacturers as grounds for unjustified price increases.
He accused industry leaders of imposing undue hardships on Nigerians by raising rent and associated costs, despite stable production expenses.
He emphasised, “The increase is a direct affront and sabotage of President Bola Ahmed Tinubu’s administration’s effort to bring comfort to the populace and should be resolved immediately.”
In further discussion, Yusuf Gagdi highlighted that despite various federal government interventions aimed at facilitating business for cement manufacturers, the price hike seemed unwarranted.
Hon. Babajimi Benson echoed similar sentiments, stressing the need for a sectoral debate and inviting manufacturers before relevant committees to provide explanations.
Hon. Sada Soli urged the House to consider the perspective of cement manufacturers, emphasizing the impact of production costs.
He advocated for compassion towards national economic issues, noting that these manufacturers often generate their own power and could potentially withdraw investments.