The House of Representatives on Wednesday summoned Dangote, BUA and other cement manufacturers in Nigeria over alleged arbitrary increase in the price of cement.
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 the manufacturers in the country.
The summons was sequel to a motion brought by Gaza Jonathan Gbefwi, and Ademorin kuye during plenary in Abuja.
In their lead debate, the lawmakers noted that the manufacturers of cement have increased the price of their products by up to 50%, leading to sharp hikes in building blocks, the cost of building, and consequently the price of rent in the country.
The lawmakers also noted that the raw materials for the manufacture of cement, which include lime, silica, alumina, iron oxide, and gypsum are all sourced locally and not affected by exchange rate volatility.
According to them, the factors of production and elements of the cement production flow chart are also sourced locally and have not changed significantly year on year.
They expressed concern that the manufacturers of cement are capitalising on exchange volatility to arbitrarily increase the price of the product, whose cost of production has not changed significantly since last year.
The lawmakers said 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 on President Bola Ahmed Tinubu administration’s effort to bring comfort to the populace and should be resolved immediately.”
In the same vein, Yusuf Gagdi stated that despite all the interventions by the Federal Government to make business easy for cement manufacturers, the hike in price was not necessary. Babajimi Benson, on his part, said: “It has to do with production cost, let us have a sectoral debate, let us hear from them, let’s invite the manufacturers with relevant committees to ask questions.”
Also speaking on the motion, Sada Soli called on the House to see reasons with the cement manufacturers, adding that the cost of production is a major factor. “Let us understand that it has to do with the cost of production.
They do not rely on the national grid, they generate their own power. Let us be compassionate when it comes to issues of the national economy.
These people can withdraw their investments.” To this end, the committee is expected to report back within four weeks for further legislative action.
