Reps Speak as Dangote, Bua, Others Increase Price of Cement in Nigeria
- House committee on solid minerals confirmed that Dangote Group is leading the nation's industrialisation initiative
- The House of Representatives member noted the company's financial impact on Nigeria's cement sector
- He commended Dangote Cement for its investments, job creation, and tax contributions
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Members of the House Committee on Solid Minerals have praised the nation's industrialization effort spearheaded by the Dangote Group.
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During their recent visit to Dangote Cement Plc in Obajana, Kogi State, members of the House of Representatives observed the economic contribution the business has made to the cement industry in Nigeria.
Gaza Gbefwi, the chairman of the House Committee on Solid Minerals, stated that the joint subcommittee's visit was in part intended to look into the reasons behind the high cost of cement at the moment and come up with solutions as a group.
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He pointed out that investors and government leaders must collaborate to boost Nigeria's industrialisation efforts.
The house of representatives member praised Dangote Cement's investments, jobs created, and tax contributions while emphasizing the need for cooperation among all parties to guarantee the nation's economic success.
Why cement price is high
The group managing director of Dangote Cement Plc, Arvind Pathak, claims that the dollar drives the price of cement ingredients, with the exception of limestone, which is mined in Nigeria.
Pathak revealed that gypsum, one of the raw ingredients, gas for fuel, machinery, and spare parts were among the dollar-driven inputs.
He claimed that the current prices of cement goods were affected by fluctuating and increasing foreign exchange rates.
According to Pathak, Dangote Group was Nigeria's largest employer after the government and had actively modified its operations to reflect the country's changing economic climate.
The general manager of Dangote Cement stated that the business will raise staff pay by 21.3% in 2022, 47.5% in 2023, and 63.2% in 2024.
Dangote Cement Plc, Obajana, Plant Director Azad Nawabuddin disclosed that the company has made an investment in CNG trucks and added them to the fleet for the transport division.
According to Nawabuddin, Dangote Cement has also made investments in alternative fuel initiatives by utilizing biomass waste, which prevents the fertile land from being used as a clean energy source.
He defined the company's alternative fuel initiative as a way for it to show how much it cares about the environment.
Prices of BUA, Dangote, other cement brands rise
Legit.ng reported that the effects of naira devaluation and high inflation have caused a 121% increase in cement production cost, which analysts say might trigger higher prices in Nigeria.
Cement manufacturers have said smuggling is rising in Nigeria, hampering the chances of selling cheaper products.
The manufacturers say the product's price is higher in neighbouring countries than in Nigeria.
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Source: Legit.ng
