Reps Begin Investigation Into Continuous Increase In Price Of Cement

The House of Representatives has expressed grave concerns over the continuous rise in the price of cement by cement vendors and manufacturers.

Consequently, the House 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 for further legislative action.

Presenting the motion co-sponsored by Hon. Gaza Jonathan and Hon. Ademorin Kuye on the “Arbitrary Increase in the Price of Cement by Manufacturers of Cement in Nigeria”, Gaza ” Notes 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, the price of rent in the country;

“Also notes 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;

“Aware that all the factors of production and elements of the cement production flow chart are also sourced locally and have not changed significantly year-on-year;

The Lawmaker is rather worried that despite the deposit of raw materials in the country 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.

“Worried that the cement cabal is unconscionably inflicting hardship on Nigerians as the prices of rent and associated services have increased.

“Cognisant that 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 said.

The motion which enjoyed generous contributions from lawmakers lamenting the hike of cement prices across the country said the motion is a home bill that affects all Nigerians.

Hon. Bello Kumo on his part, said cement manufacturers are milking Nigerians and taking undue advantage of the exchange rate of the naira dollar.

Lending his voice to the debate, Hon. Billy Aawaru from Edo State said the manufacturers of cement recently announced a whooping increase in profit despite complaining of inflation, noting that the sector enjoys Tax waivers and other incentives from the federal government

In his contribution, Hon. Babajimi Benson proposed a Sectoral debate where manufacturers of cement and other stakeholders will explain to Nigerians why the price of cement has continued to skyrocket.

Hon Sada Soli, while cautioning the House said “Nigerian operates a free market economy without a monopoly in cement manufacturing, noting that the plant, when privatised was sold to the highest bidders and that Nigeria is the highest producer of cement in Africa”

He also said the cost of production and power must be considered since the cement manufacturers were producing their power using gas which is priced at international price.