House of Representatives yesterday resolved to investigate the arbitrary increase in the price of cement by cement manufacturers in the country.
Dangote Cement Plc, BUA Cement Plc and Lafarge are among the major cement producers in the country.
The House resolved to invite cement manufacturers alongside the Ministers of Solid Minerals Development and Trade and Investment to brief the House at plenary on reasons for the increasing cost of cement and efforts being made to force down the price.
This followed a motion on notice sponsored by Gaza Jonathan Gbefwi (SDP, Nasarawa) and Ademorin Kuye (APC, Lagos).
The House mandated its committees on Solid Minerals Development, Commerce, Industry and Special Duties to investigate the manufacturers of cement and report back within four weeks.
Gbefwi 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 are sourced locally and not affected by the exchange rate volatility.
According to him, 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 was worried that manufacturers of cement are 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 Tinubu administration’s effort to bring comfort to the populace and should be resolved immediately.”
There had been outcry over the steady rise in the cost of cement which hovers between N10,000 and N15,000 per 50kg bag, up from the previous cost of about N5,000 per bag.
