The House of Representatives on Wednesday summoned Dangote, BUA, and other cement manufacturers in the country over an arbitrary spike in cement prices in the country.
Subsequently, the lower chamber directed its Committees on Solid Minerals Development, Commerce, Industry, and Special Duties to investigate the manufacturers’ increases in cement pricing and report back within four weeks with recommendations for future legislation.
The summon follows the acceptance of a motion submitted by Hon. Gaza Jonathan Gbefwi (SDP, Nasarawa) and Hon. Ademorin Kuye (APC, Lagos) in plenary on Wednesday.
Moving the motion Gbefwi noted that the manufacturers of cement have increased the price of their products by up to 50 per cent, leading to sharp hikes in building blocks, the cost of building, and consequently, house rents in the country.
He also noted that the raw materials for the manufacturing of cement, which include lime, silica, alumina, iron oxide, and gypsum, are all sourced locally and not affected by exchange rate volatility.
The lawmaker further explained that the factors of production and elements of the cement production flow chart are also sourced locally and have not changed significantly year on year.
He expressed concern that cement manufacturers are capitalising on exchange volatility to arbitrarily increase the prices of the product, whose costs of production remained unchanged significantly since last year.
Read Also:
Onion Price Drops in Kano Amidst Food Inflation Spike
Gbefwi also said 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’s administration’s effort to bring comfort to the populace and should be resolved immediately,” he maintained.
Speaking in support of the motion, Hon. Yusuf Gagdi (APC, Plateau) noted that with all the interventions by the Federal Government to make business easy for cement manufacturers, the hike in price was unnecessary.
On his part, Hon. Babajimi Benson (APC, Lagos) said the hike has to do with production cost, but called for a sectoral debate to, “hear from them. Let’s invite the manufacturers with relevant committees to ask questions.”
Also speaking on the matter, Hon. Sada Soli (APC, Katsina) called on the House to understand with the cement manufactures, adding that the cost of production is a major factor.
“Let us understand if it has to do with cost of production. They do not rely on national grid, they generate their own power. Let us be compassionate when it comes to issues of national economy. These people can withdraw their investments,” he said.
PeoplesPen24 reported that President Bola Tinubu had recently invited President of Dangote Group and his counterpart in BUA conglomerate to fashion means to crash the sudden price increase on cement.
