Reps Issue Ultimatum to Dangote, BUA, Other Cement Manufacturers on New Prices
- Dangote, BUA and other cement manufacturers in the country have been summoned by the House of Representatives
- The summoning by the legislators comes on the heels of the continuous rise in the prices of cement across the country
- This would be the second time the cement manufacturers would be invited after they failed to honour an earlier invitation
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Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The House of Representatives' joint committee investigating the recent increase in cement prices has issued a 14-day ultimatum to BUA, Lafarge Ashaka, Dangote Cement, and other cement manufacturers to appear before it and provide their input on the price surge.
The committee has raised concerns about the rising cost of cement in Nigeria, the most populous country in Africa, in comparison to other nations.
Source: UGC
Cement prices higher in Nigeria than Kenya, Zambia
Jonathan Gaza Gefwi, the committee's chairman, expressed dismay over the price gap, noting that Nigeria's cement prices are significantly higher than in countries like Kenya and Zambia.
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According to Vanguard, Gefwi cited that Nigeria's cement price is 69% higher than India's, 29% higher than Kenya's, and 39% higher than Zambia's.
Legit.ng had earlier reported that cement manufacturers attributed the rise in prices nationwide to a significant surge in operational expenses and persistent high foreign exchange rates.
Cement manufacturers to appear before House committee
In March, the committee summoned Dangote Cement plc, BUA, Ibeto, and other companies to appear for an investigative hearing. However, none of the companies attended the Tuesday, May 7 hearing.
Gefwi criticised the companies for disregarding the invitation, calling it insensitive to the struggles of Nigerians.
He said:
“We are trying to see to the development of our country. Just as it was emphasised in the opening remarks, cement is to a building what air is to every human being. In the human nature of the House, because we owe them a duty of care because they are equally Nigerians, we are giving them 14 days to make their submissions."
Gbefwi stated that the parliament had not received any court order preventing it from summoning individuals or companies for investigative purposes.
He stressed that if the companies fail to appear before the committee, the House will utilize its authority to ensure that Nigerians are not overlooked or exploited.
Consequently, the committee has given the cement manufacturers a 14-day ultimatum to attend the hearing on Monday, May 20, 2024.
Builders ask FG to slash cement price
In related news, Legit.ng reported that the Lagos Chapter of the Nigerian Institute of Building has called on the federal government to intervene and lower the price of cement in the country.
The institute stated this at a briefing in Lagos state ahead of its 32nd Builders Conference tagged "Safe and Sustainable Building Production Management."
They attributed the skyrocketing cement prices to poor foreign exchange, adding that this has taken a toll on producers.
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Source: Legit.ng
