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Reps Demand Document On Cost Of Production From Cement Manufacturers

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…blame FCCPC for its laxity causing price increase 
 
By Gloria Ikibah 
 
The House of Representatives Joint Committee investigating the “Arbitrary Increase Of Cement Price In The Country” has requested for documents on cost of production from major manufacturers in the industry to justify the price of the commodity in the market.
 
The Committee criticised the Federal Competition Consumer Protection Commission (FCCPC) for its slackness and inefficiency which significantly contributed to the high cost of the commodity.
 
This was as the Group Managing Director (GMD) of Dangote Cement Company, Arvind Pathack, and Managing Director of Lafarge Cement, Ibrahim Aminu, were queried by the joint panel chaired by Rep. Jonathan Gaza on Friday.
 
“We want to make sure they bring the total documents we requested to ascertain their day to day production to be able to have a good idea of how much it actually costs to produce a bag of cement,” Gaza said.
 
The committee resolved to visit production plants of the companies after going through their books to ascertain the cost of production with a view to determine a fair price of cement for all Nigerians. 
 
The Chairman therefore assured that the efforts of the Committee would see the reduction of the price of cement for the benefit of Nigerians as soon as possible.
 
He said that the committee is interested in the cost of production from 2020 to date that justified the current price of cement which is over N10,000 in most parts of the country.
 
He said that the companies should give its average daily consumption of coal, gas, gypsum, limestone, clay, laterite and the average daily production of cement from 2020 to date.
 
Rep. Gaza said that the companies should provide details of all imported components for the production of cement and their prices from 2020 to date.
 
The lawmaker said that the companies should also provide details of local components for the production of cement, their prices in naira and dollars if any in the period under review and a summary of the monthly prices and quantity of cement produced from 2019 to date, as well as their audited accounts of the company, bills of laden and duties paid to customs within the period under review.  
 
Rep Gaza also said that the companies should provide details of tax waivers and other incentives enjoyed plus gas and explosives contract details.
 
The Committee also frowned at excuses of the high cost of foreign exchange by the companies as one of the reasons for the increasing price of cement.
 
The members of the Committee said this was not tenable as most of the materials for production of cement are sourced locally.
 
A member of the Committee, Rep. Dabo Ismail, said that Dangote Cement Company had continued to make increasing profits in the country despite being able to source most of its raw materials locally.
 
He said that in 2022, the company declared a profit of N524 billion, N553 billion in 2023 and have so far made N166.4 billion in 2024.
 
The lawmaker said that there was no reason why the price of cement will keep rising in the market to the detriment of Nigerians while producers are smiling to the banks. 
 
Earlier, the Group Managing Director (GMD) of Dangote Cement Company, Arvind Pathack said that 95 per cent of production cost are either imported or linked to foreign exchange.
 
He explained that there had been between 100 to 333 per cent increase in the price of major cement input materials like gas, AGO, gypsum, imported coal, spare parts, new trucks, tyres, petrol among others.
 
Pathack said that the company is made to pay for some of its contracts in dollars to access gas and explosives for production .
 
According to him, the provision made by the Central Bank of Nigeria (CBN) was not enough to meet demand so they engage in international sales also sourced from the parallel market.
 
Adding that logistics issues such as deplorable state of key roads, creates several issues including longer time to deliver, increase in truck maintenance and delivery cost.
 
The GMD explained that lack of sufficient forex to settle trade obligations had resulted in huge forex losses to a tone of N150 billion a per annum while paying 30 per cent interest rate on loans. 
 
He noted that between May 2023 and June 2024, there has been over 220 per cent devaluation of the Naira among many other challenges like insecurity and public power supply. 
 
Pathack said that the cost of building materials like reinforcement, granite and aluminium window had increased by 177 per cent to 283 per cent while cement had increased by 166 per cent between 2023 and 2024.
 
He said that cement was being sold at an average cost of 7,200 saying that any price over N10,000 was the handwork of retailers which the company had no control over.
 
According to him, when converted to dollars a bag of cement is said at $7.8 dollars in Benin, $6.6 in Togo, $7.8 in Ghana, $4.4 in India while that of Nigeria is $4.43, making it one of the cheapest in Africa.
 
The committee admonished the companies to look into their policy and operations with a view to reduce the price of cement in the country.
 
Rep. Gaza blamed high price of the commodity on the inaction of Federal Competition Consumer Protection Commission (FCCPC).
 
He said that as an agency responsible for the protection of consumers, they failed to protect Nigerians against middlemen who sold the commodity for as high as N14,000 after purchasing it for N6,000 at the factory.
 
“We are extremely hopeful that this engagement will lead to a reduction in the price of cement.
 
“FCCPC has slept on their functions so far, their inactivity and non responsiveness to price is what has put Nigeria where we are today,” he said.
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Nigerian Govt promises support for stampede victims’ families

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Vice-President Kashim Shettima has said the Federal Government will support families of victims of recent stampedes across the country.

Shettima made this known in a condolence message on Sunday in Abuja.

He expressed sorrow over the losses and offered prayers and condolences to the affected families.

Recall that on Saturday in Okija, Anambra, a Christmas palliative distribution event turned tragic with 22 persons losing their lives in an early morning stampede.

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The same day in Abuja, another tragedy struck when ten persons died during an annual Christmas food-sharing event at Holy Trinity Catholic Church, Maitama.

There was also a stampede on Wednesday at the Islamic High School, Bashorun, Ibadan, Oyo State, where about 35 children lost their lives and others sustained injuries during a holiday fun fair.

The vice-president, who described the incidents as a national tragedy, revealed that the Federal Government had directed relevant agencies to provide immediate support to affected families.

“I am extremely saddened by these tragic incidents that have claimed innocent lives.

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“My prayers and thoughts are with the grieving families of all victims, including those who sustained injuries and are undergoing treatment.

“I am particularly distraught by the fact that so many lives of Nigerians, particularly children, have been lost in stampedes that ought to have been avoided through proper planning and organisation,” he said.

He prayed the Almighty God to grant eternal rest to the souls of the departed.

“We stand ready to support the bereaved families through this difficult period, and no effort will be spared in providing the necessary assistance they need.”

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Umahi rules out compensation for bare land owners

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The Minister of Works, David Umahi, has reiterated that the Federal Government does not compensate for bare lands, adding that all lands belong to the government.

He disclosed this at the inspection of the Lagos-Calabar Coastal Highway, Section 1 at kilometre 18, Okun Ajah axis, recently.

He said, “Go and read the law; there is no compensation for bare land. All land belongs to the government. Hence, if you are taking what belongs to you, you do not pay compensation; it is the president that directed that anywhere we see a shanty on our corridor, we should pay compensation; it is a kind of human meekness from the president towards the people. We broke no law.

“So, where there is no infrastructure on land, they have to write to Mr. President for a direction on that.”

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In an interview with The Punch, the General Secretary, Nigerian Institute of Quantity Surveyors, Lagos Chapter, Folusho Ogunrinde, said land was undeniably an asset whether owned by individuals, businesses, or the government.

He said, “Governments recognise the value of land as an asset and manage it as such. For instance, you cannot encroach on government-owned land for development because it is considered part of their assets.

Similarly, individuals and private entities acquire land either through inheritance, purchase, or investment. When such land is taken away, the argument that compensation should only be for developments and not the land itself is fundamentally flawed. It disregards the asset’s intrinsic value and how it was acquired.

“The 99-year lease system in Nigeria further underscores the value of land as an asset, as this lease is renewable. If governments require compensation for the renewal of a lease or when public use necessitates land acquisition, individuals and private owners deserve similar recognition and compensation for their land when expropriated.

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“The law, as it stands, needs urgent redress. The idea that landowners should not be compensated for their land is, frankly, unjust and tantamount to fraud. Land is more than a physical space; it is an economic and generational asset. To deny compensation for it is to undermine the principles of equity and justice. Hence, there is a need for a review of the Land Use Act and constitutional provisions to align with the realities of land as a critical and valuable asset.”

In a similar vein, the Team Lead, Arbitration, Maritime, and Real Estate Practice Group, Stren & Blan Partners, Joseph Siyaidon, posited that non-payment of compensation on bare land was unconstitutional.

He said, “The Land Use Act is merely an existing Act and not part of the Constitution. We humbly submit that the provisions of the Land Use Act, which limit the payment of compensation for private properties compulsorily acquired by the government to only unexhausted improvements on the land, are unconstitutional in that they violate the provisions of Sections 43 & 44 of the Constitution of the Federal Republic of Nigeria (as amended), which extends the right of compensation to all immovable properties, bare lands included.”

Umahi disclosed that the first phase of the coastal highway will be completed by May 29, 2025.

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He said, “By May 29 we are facing the commissioning, and we have directed all the comptrollers of works that, by the end of April, every comptroller of works in all the states must give us a minimum of three projects that Mr. President is going to commission.

“From Channel 0, we are going to be commissioning the first 20 kilometres; however, another 10 kilometres would be ready at the end of the project within this period, but we are not commissioning that one, it is going to be phase 2 of section 1 for commissioning. Generally, across the country, we are going to be commissioning projects in phases.”

Meanwhile, the Acting Director of Road Design, Engr. Musa Saidi, assured that the highway construction adheres to approved specifications and includes additional measures for durability. Any realignment is for public interest, safety, and economic reasons,” he said.

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Telcos demand plan to resolve N250bn USSD debt

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The Association of Telecommunications Companies of Nigeria has called on industry regulators to implement clear and practical solutions to resolve the long-standing N250bn debt owed by banks to telecom operators for Unstructured Supplementary Service Data offerings.

Speaking with The PUNCH, ATCON President Tony Emoekpere stressed the need for clear solutions, warning that the debt crisis threatens the progress of financial inclusion in the country.

In Nigeria, USSD is vital for financial inclusion, particularly in rural areas where smartphone penetration and internet access are limited.

It is heavily relied upon by banks, especially for mobile banking services, and is also used for services like airtime top-ups, bill payments, and other telecom services.

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“My advice is that it is crucial for this debt to be addressed directly and for a solution to be found. If telcos are not encouraged to support the financial industry and such debts continue to accumulate, it will be detrimental to financial inclusion targets,” he said.

Emoekpere also highlighted the importance of prioritizing USSD traffic and creating incentives for telecom operators to continue supporting the financial sector.

He urged industry regulators, including the Nigerian Communications Commission and the Central Bank of Nigeria, to establish a framework that ensures the timely and equitable resolution of such disputes.

The debt crisis has persisted for years, with telecom operators threatening to suspend USSD services unless payments are made.

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While smaller banks have reportedly begun repaying their obligations in installments, tier-one lenders—responsible for the bulk of the debt—are yet to make significant payments, according to the Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo.

“Some repayments have been recorded, but they fall short of expectations,” Adebayo told The PUNCH in November.

Telecom operators have long argued that the unpaid debts undermine their ability to maintain USSD services, which are critical for financial transactions in Nigeria.

The operators have repeatedly called for the intervention of regulators to facilitate a lasting resolution.

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Industry stakeholders warn that failure to resolve the debt crisis could jeopardize efforts to expand financial inclusion, particularly in rural areas where USSD services play a pivotal role.

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