The House of Representatives has summoned Dangote, BUA and other cement manufacturers over what it described as arbitrary increase in the price of cement in the country.
Consequently, the House mandated its Committees on Solid Minerals Development, Commerce, Industry and Special Duties to investigate the arbitrary increase in the price of cement by the manufacturers in Nigeria and report back within four weeks for further legislative action.
This was sequel to the adoption of a motion moved by Hon. Gaza Jonathan Gbefwi (SDP, Nasarawa) and Hon. Ademorin Kuye (APC, Lagos) at plenary on Wednesday.
Moving the motion Gbefwi noted that the manufacturers of cement have increased the price of their products by up to 50 per cent, leading to sharp hikes in building blocks, the cost of building, and consequently, the price of rent in the country.
He also noted that the raw materials for the manufacture of cement, which include lime, silica, alumina, iron oxide, and gypsum, are all sourced locally and not affected by exchange rate volatility.
The lawmaker further explained that 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 expressed concern that the manufacturers of cement are capitalising on exchange volatility to arbitrarily increase the price of the product, whose cost of production has not changed significantly since last year.
Gbefwi also said the cement cabal is unconscionably inflicting hardship on Nigerians as the prices of rent and associated services have increased.
“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” he maintained.
Speaking in support of the motion, Hon. Yusuf Gagdi (APC, Plateau) noted that with all the interventions by the federal government to make business easy for cement manufacturers, the hike in price was not necessary.
Also speaking on the matter, Hon. Sada Soli (APC, Katsina) called on the House to agree with the cement manufacturers, adding that the cost of production is a major factor .