By Gloria Ikibah
The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, has said gas concession given to electricity companies should be extended to cement manufacturers as a means of addressing the hike in the product.
The Minister stated at the continued investigative hearing organised the House of Representatives Joint Committee on Solid Minerals, Industry, Commerce and Special Duties, to probe the arbitrary increment of Cement prices on Tuesday in Abuja.
Represented by the Permanent Secretary, Amb. Nura Rimi, she said: “The cement manufacturers should be accorded ‘the gas to light price’ as enjoyed by electricity distributors”.
She noted that a recent meeting with the Minister of Works, Engr. David Umahi and major cement manufacturing companies, recommended same.
“There is a need for friendly gas pricing. The meeting recommended the gas to power concession given to the electricity companies should also be enjoyed by the cement companies,” she added.
Uzoka-Anite identified some of the challenges facing cement manufacturers to include cost of gas, high import duty on spare parts, road network, high foreign exchange, and smuggling of cement to neighbouring nations;
She said the cement manufacturers and the government noted that the current high price of cement is abnormal in some locations nationwide and it was unanimously agreed that cement retail prices should not cost more than N7,000 to N8,000 per 50kg bag depending on the location.
She further revealed that government advised cement manufacturers to set up a price monitoring mechanism to ensure compliance, and manufacturers have willingly accepted to do so and to sanction any of her distributors or retailers found wanting.
The Minister further noted that the country is self-sufficient in cement manufacturing with major players like Dangote industries Limited, BUA Group, and Lafarge Holcin, and that the Ministry was deliberating on how the Cement companies that stopped constructions can be brought on board, hear their challenges and find a way of bringing them back in the sector.
The members of the committee were not satisfied with the minister’s submissions, as the Committee Chairman, Rep. Gaza Gbewfi wondered why cement manufacturers were complaining about roads, when it is their activities that is largely responsible for the bad roads.
He noted that it was also a corporate responsibility by the cement companies to ensure the maintenance of the road, especially as it should be part of their their corporate social responsibility.
Other members also wondered why Forex was an issue as most of their materials were sourced locally.
Gbewfi in his ruling directed the Ministry to make available its minute with the cement manufacturers, a comprehensive report of all pioneer status issued to all the cement companies from Inception and list of the incentives available to them.