Reps summon Dangote, BUA, Lafarge, others over cement price hike

The House of Representatives on Wednesday summoned cement manufacturers in the country to appear before it to explain the rationale behind arbitrary increase in the cost of cement in the country.

Daily Trust reports that Dangote Cement Plc, BUA Cement Plc and Lafarge are among the major cement producers in the country.

The House also mandated its committees on Solid Minerals Development, Commerce, Industry and Special Duties to investigate the arbitrary increase in the price of cement by manufacturers of cement in the country and report back within four weeks.

The resolutions followed the adoption of a motion sponsored by Reps Gaza Jonathan Gbefwi and Ademorin Kuye.

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Daily Trust reports that there had been outcry over the skyrocketing cost of cement which hovers between N10,000 and N15,000 per bag, up from the previous cost of about N5,000 per bag.

Gbefwi while moving his motion lamented that manufacturers of cement had increased the price of their products by up to 50 percent, leading to sharp hikes in the prices of building blocks, the cost of building, and consequently, the price of rent in the country.

He observed that the raw materials for the manufacturing of cement, which include lime, silica, alumina, iron oxide, and gypsum, were all sourced locally and not affected by the exchange rate volatility.

The lawmaker said all the factors of production and elements of the cement production flow chart were also sourced locally and had not changed significantly year-on-year, wondering the rationale for the arbitrary increase in the cost of cement.

He expressed concerns that the manufacturers of cement were capitalising on the exchange volatility to arbitrarily increase the price of the product, even though cost of production had not changed significantly since last year.

Gbefwi said, “The cement cabal is unconscionably inflicting hardship on Nigerians as the prices of rent and associated services have increased.”

He said the increase in price of cement is a “direct affront and sabotage of the President Bola Ahmed Tinubu administration’s effort to bring comfort to the populace and should be resolved immediately.”