Expert Reacts As Reps Summon Dangote, BUA Other Manufactures Over New Cement Prices
- Members of the House of Representatives have decided to invite cement manufacturers, including Dangote Cement and BUA Cement
- The invitation is for the manufacturers to explain the current cement prices in the market despite agreements with the federal government
- Muda Yusuf, CEO of CPEE, told Legit.ng that the way the way cement manufacturers were presented is unfair
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
In response to rising food prices, the House of Representatives has resolved to invite cement manufacturers, including Dangote Cement and BUA Cement, to appear before them.
The lawmakers believe a meeting with the manufacturers will help find a solution on ways out of the hardship arising from the high cost of the product.
Source: Getty Images
Reps invite Dangote, other cement manufacturers
The invitation follows the adoption of a motion titled “Arbitrary increase in the price of cement by manufacturers of cement in Nigeria," Punch reports.
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The lawmakers complained that the rising cement prices do not reflect market reality and believe that a bag should be sold at lower prices than the current ones.
Earlier, Legit.ng reported that cement manufacturers had met with the federal government and reached an agreement on prices ranging from N7,000 to N8,000.
These agreements have already been implemented in some states in the north, but the south remains at prices ranging from N10,000 to N15,000 for a bag of cement.
Muda Yusuf disagrees with lawmakers
Reacting to the decision to invite Dangote, BUA, and other manufacturers, Muda Yusuf, Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), told Legit.ng that the invite portrayed cement manufacturers in very bad light.
According to him, accusing investors in the cement sector of exploitation and alleging their engagement in the arbitrary fixing of cement prices is very unfair.
His words:
"Most of the remarks at the session were capable of inciting the public against the cement manufacturers and putting their huge investments at risk.
"It is a dangerous thing to do, given the huge stake they have in the Nigerian economy and their enormous contributions to the economy.
"We plead with the leadership of the house to ensure moderation in the use of language to avoid adverse consequences for investors in the economy, going forward.
"It is even more troubling that the members have not listened to the manufacturers before rushing to judgment and castigating the manufacturers.
" Cement manufacturers were disparaged, denigrated and portrayed as deliberately inflicting pains on the Nigerians by arbitrarily increasing the price of cement. "
He added that lawmakers' choice of words does not accurately depict the challenges faced by manufacturers, and the situation is not entirely their fault.
Yusuf added:
"The business of manufacturing is perhaps the most challenging enterprise in the contemporary Nigerian economy. Many foreign firms in that space have either exited the country or downsized their operations.
"We appeal to the national assembly to always extend due courtesies to investors in the economy in the course of their legislative duties. The private sector plays a very critical role in the economy."
"They account for over 80% of the country’s GDP, about 90% of the employment and over 70% of the government revenue. They deserve to be addressed with respect, courtesy, civility and fairness.
Dangote, BUA, Lafarge make over N2trn from sales
Meanwhile, the Nigerian cement makers, including Dangote Cement, recorded a combined revenue increase in 2023.
The increased revenue reflects not only the rise in construction activities but also the increase in cement prices from the previous year.
On the customers' side, there is also good news, as traders have decided to reduce cement prices in some northern states.
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Source: Legit.ng
