BUA, Dangote, others summoned over increase in cement prices

According to news reports, the House of Representatives has summoned Dangote, BUA, and other cement manufacturers in the country over what it described as an arbitrary increase in the prices of cement in the country. Consequently, the House mandated its committees on Solid Minerals Development, Commerce, Industry, and Special Duties to investigate the increment in cement prices by the manufacturers and report back within four weeks for further legislative action. The summon followed the adoption of a motion moved by Hon. Gaza Jonathan Gbefwi (SDP, Nasarawa) and Hon. Ademorin Kuye (APC, Lagos) at plenary on Wednesday. Moving the motion Gbefwi noted that the manufacturers of cement have increased the price of their products by up to 50 percent, 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 stated that the factors of production and elements of the cement production flow chart are also sourced locally and have not significantly changed year-on-year. He expressed concern that cement manufacturers are capitalizing on exchange volatility to arbitrarily increase the prices of the product, whose costs of production remained unchanged significantly since last year. 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 the cement manufacturers, adding that the cost of production is a major factor. “Let us understand if it has to do with the cost of production. They do not rely on the national grid; they generate their power. Let us be compassionate when it comes to issues of national economy. These people can withdraw their investments,” Soli said.