The top manufacturers include Africa’s richest man, Aliko Dangote and another prominent businessman, Rabiu Abdulsamad.
The House of Representatives is set to send another invitation to top manufacturers of cement in the country over the recent hike in the prices of commodities in the market.
The top manufacturers include Africa’s richest man, Aliko Dangote and another prominent businessman, Rabiu Abdulsamad.
This invitation would be the second sent to the cement producers within one month for deliberation on ways out of the hardship arising from the high cost of the product.
The House resolution was followed the adoption of a motion titled: “Arbitrary increase in the price of cement by manufacturers of cement in Nigeria,” moved by a member representing Karu/Keffi/Kokona Federal Constituency, Nasarawa State, Mr Gaza Gbefwi, during plenary on Wednesday and a member representing Shomolu Federal Constituency, Lagos State, Ademorin Kuye.
Leading the debate at a session presided over by Speaker Abbas Tajudeen, Gbefwi argued that cement manufacturers have increased the price of their products by up to 50%, resulting in sharp increases in building blocks, construction costs and, as a result, rent prices across the country.
According to him, it is amusing because the raw materials used to make cement, such as lime, silica, alumina, iron oxide, and gypsum, are all sourced locally and unaffected by exchange rate fluctuation, yet the price of cement rises virtually every week.
According to him, a small but powerful “cement cabal” is unconscionably inflicting hardship on Nigerians “as the prices of rent and associated services have increased.
In his contribution, a member representing Kanke/Pankshin/Kanam Federal Constituency, Plateau State, Yusuf Gagdi asked why Nigerians are being subjected to untold hardship by cement manufacturers, adding that “Nigerian cements are a big market for Niger Republic, Cameroon and other neighbouring countries.”
He said, “Why should Nigerians continue to suffer from incessant increases in the price of cement? We have a duty to rise up and defend the common man. I think it is important we invite the manufacturers to tell this house what is going on because we can’t continue like this.”
On his part, the Deputy Minority Whip of the House, George Ozodinobi, called for the mass importation of cement into the country to force down the price.
The lawmaker who represents Njikoka/Dunukofia/Anaocha Federal Constituency, Anambra State, said, “Let us open the floodgate of importation of cement into the country. This will bring down the price of the product.”
Ozodinobi also recalled that when cement importation was the norm, the price was stable and affordable.
“When the man from Nnewi and Chairman of the Ibeto Group, Cletus Ibeto, was given the opportunity to bring in cement into the country, the price came down drastically but he was frustrated out of the system,” he added.
However, the duo of Sada Soli (APC, Katsina) and Babajimi Benson (APC, Lagos) called for caution, arguing that a number of factors come into play in determining the price of a product.
Jimi said, “It is either the frequent increment is caused by production cost or something else. Let us invite the manufacturers to meet with the relevant committees.”
Similarly, Soli urged the lawmakers to remember that Nigeria had become a net exporter of cement to other African countries and as such, manufacturers should be supported to hold on to their market lead.
“Let us understand the place of cost of production. These people bought these companies and turned them around. In most cases, they provide their own power. Let us not be complacent when we are talking about issues concerning the national economy. Let us support these people because they can withdraw their investments,” he stated.
Following the adoption of the motion, the House summoned the manufacturers to appear before it in the next sectoral debate, and it directed its Committees on Solid Minerals Development, Commerce, Industry, and Special Duties to investigate the arbitrary increase in cement prices by the country's manufacturers and report back within four weeks for further legislative action.