Reactions as House of Reps Summons BUA, Dangote, Others Over New Cement Price
- The House of Representatives has summoned major cement manufacturers over the increasing price of cement
- The resolution came after a motion made by Hon. Gaza Jonathan Gbefwi and Hon. Ademorin Kuye at Abuja's plenary
- The House has missed a reaction to the increase in the price of cement by Dangote Cement and other major manufacturers
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
In response to claims that a Nigerian cement company had arbitrarily raised cement prices, the House of Representatives called Dangote, BUA, and other cement manufacturers on Wednesday, March 13, to account.
Source: Getty Images
The House also ordered the Committees on Solid Minerals Development, Commerce, Industry, and Special Duties to look into the nation's cement manufacturers' arbitrary price increases, according to a Vanguard report.
The resolution followed a motion made in plenary in Abuja by Hon. Gaza Jonathan Gbefwi and Hon. Ademorin Kuye.
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In moving the motion, Gbefwi pointed out that the country's rent has increased due to steep price increases in building supplies, construction costs, and cement manufacturers' up to 50% pricing increases.
He stated that local suppliers of lime, silica, alumina, iron oxide, and gypsum are unaffected by fluctuations in currency rates, as these raw ingredients are used in cement production.
Additionally, he clarified that the production inputs and components of the cement production flow chart are likewise obtained locally and do not undergo significant yearly changes.
He voiced fears that cement producers are using currency instability to artificially raise the product's price, even though its production costs haven't moved much since last year.
Additionally, he claimed that because rent and related service costs have gone up, Nigerians are being unjustly harmed by the cement cartel.
“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.”
Speaking on the motion as well, Yusuf Gagdi claimed that the price increase was unnecessary despite all the federal government's efforts to facilitate business for cement producers.
Hon BabajimiSSSS Benson also said:
“It has to do with production cost; let us have a sectoral debate, hear from them, and invite the manufacturers with relevant committees to ask questions."
Recall that a recent report by Legit.ng reported how states have currently experienced a reduction, including the Federal Capital Territory (FCT), Niger, and Nasarawa states.
The current prices for major cement brands in these states are as follows:
- Dangote Cement is between N8,000 and N9,500
- Lafarge Cement is between N8,000 and N9,300
- BUA Cement stands at N7,500 to N9,000.
How Nigerians are reacting on social media
@MRBRIKILA1
“Bag of cement N10k. 100 x 10,000= 1m. Many Nigerians will find it more difficult to own a house.”
@Muhd_paps
"Why the reps will not consider food price hike, the inflation is growing day by day."
@Godson914812
"The two companies are monopolising the country."
@gamepoint35 said,
"They should also summon sachet water vendors. Seriously, how can you sell 1 bag for 400 in Lagos while it is lesser in the North?"
The report shows states with the lowest cement prices
Legit.ng reported that weeks after the federal government met with significant cement producers, Nigerians are still unhappy about the high cost of cement.
Legit.ng had reported that cement producers agreed to reduce prices to N7,000 to N8,000 per bag at the meeting.
Despite government intervention, checks show that most retailers in Lagos and Ogun States sell bags at N10,500 and N14,000.
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Source: Legit.ng
