Senate to Probe Dangote, Lafarge, Others Over High Cement Prices as FG Threatens to Open Borders
- The Nigerian senate has mandated its Committee on Industries to investigate the high cost of Cement
- The move follows a motion by Senator Lola Ashiru from Kwara state, who lamented the high cost of the material in Nigeria
- The development comes a day after the Nigerian government threatened to license importers to bring in the product and crash the price
Legit.ng’s Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade
On Wednesday, February 22, 2024, the Nigerian Senate asked its Committee on Industries to reveal the reasons behind the rise in cement prices by producers in Nigeria.
Godswill Akpabio, Senate President, asked the committee to find a solution to the exorbitant cost of the product and influence the manufacturers to abide by regulations.
Source: UGC
High cement price affects construction jobs
The move followed a motion sponsored by the senator representing Kwara South, Lola Ashiru, during plenary.
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Ashiru complained that cement prices have risen drastically from N5,000 to N15,000 without proper regulations.
He said the product's current price is unbearable to Nigerians, considering the high cost of living that Nigerians are subjected to.
According to the senator, the increase in the price has affected the construction industry, projects, and infrastructure work being carried out by individuals, companies, and government agencies.
Senator links unemployment to high crime rate
He expressed worry that many projects have been abandoned due to Nigeria's high cement cost.
He said:
“Contractors are facing serious problems leading to stalling of projects, which is threatening the employment of the youths.”
Ashiru warned that if the government fails to regulate the cement price, the unemployment rate in Nigeria and insecurity will worsen.
He reiterated that youth unemployment is linked to a rise in criminal activities.
The senator said price regulation would ensure the progress of constituency projects and strengthen national security by providing jobs and stability and improving the livelihoods of Nigerians.
FG threatens to open borders for cement import
Premium Times they were reported that the lawmakers asked the Senate to investigate the issue to allow manufacturers to regulate their prices.
The move follows a threat by the Nigerian government to crash cement prices by licensing importers to bring in the product.
The government also said it would open the borders for the importation of cement if manufacturers continued with their cut-throat prices.
The Minister of Housing and Urban Development, Ahmed Danguwa, disclosed this in Abuja recently at a meeting with producers and building materials manufacturers.
This is as crucial cement manufacturers in the country agreed to peg the product price between N7,000 and N8,000, respectively, Legit.ng reported.
Cement producers give conditions for crashing
Legit.ng reported that the national chairman of the Cement Producers’ Association of Nigeria (CEPAN), David Iweta, has said the association is ready to help the Nigerian government to crash cement prices within 30 days if taken along as part of efforts to find a solution.
Iweta attributed the continued increase in the product's price to the challenge of demand outweighing supply in the sector.
He said the supply chain is affected mainly by the foreign exchange crisis in the country.
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Source: Legit.ng
