Disturbed by the incessant increase in price of cement the House of Reps on Wednesday invited top cement manufacturers, Dangote, BUA amongst others to explain this ugly development.
The legislative body has also tasked its Committees on Solid Minerals Development, Commerce, Industry, and Special Duties with investigating the surge in cement prices across the country.
This initiative was sparked by a motion presented by Hon. Gaza Jonathan Gbefwi and Hon. Ademorin Kuye during a plenary session in Abuja.
The lawmakers raised alarms over a dramatic upsurge in cement prices by as much as 50%, which has significantly driven up the costs of building blocks, overall construction expenses, and consequently, the price of rent nationwide.
A critical point highlighted during the motion is the localization of cement manufacturing’s raw materials, such as lime, silica, alumina, iron oxide, and gypsum, which shields the industry from exchange rate fluctuations.
Additionally, it was noted that the production factors and elements of the cement production flow chart have remained stable over the years, casting doubt on the justification for the price increase.
Hon. Gbefwi expressed deep concern over the manufacturers’ apparent exploitation of exchange rate volatility as a pretext for unjustified price hikes.
He accused the cement industry’s leaders of inflicting undue hardship on Nigerians by driving up the costs of rent and related services, despite stable production costs.
He said, “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.”
Also speaking on the motion, 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.
Hon Babajimi Benson also speaking said “It has to do with production cost , let us have a sectoral debate , let us hear from them, lets invite the manufacturers with relevant committees to ask questions.
Hon Sada Soli also speaking on the matter called on the House to understand with the cement manufactures, adding that the cost of production is a major factor .
“Let us understand if it has to do with cost of production .They do not rely on national grid they generate their own power, let us be compassionate when it comes to issues of national economy . These people can withdraw their investments.”
The committee is expected to report back within four (4) weeks for further legislative action.