Cement Price, The House of Representatives has given Dangote Cement, BUA, Lafarge Ashaka, and other cement manufacturing companies in Nigeria a 14-day ultimatum to appear before it and provide explanations regarding the arbitrary increases in the price of cement nationwide.
Mr. Gaza Gbefwi, the Chairman of the House Committee on Solid Minerals, issued the directive during a public hearing organized by the House Joint Committees on Commerce, Industry, Special Duties, and Solid Minerals in Abuja on Tuesday. This hearing aims to investigate the unjustified rise in cement prices by cement manufacturers in Nigeria.
The decision to summon the cement companies follows a motion adopted by the House on March 13, 2024, regarding the “Arbitrary increase in the price of cement by the cement manufacturers in Nigeria.” A joint committee was subsequently constituted to investigate the matter and report back to the House for further legislative action.
Despite the public hearing, none of the cement companies attended or sent representatives to make submissions on their behalf, which sparked frustration among the lawmakers.
Expressing his dissatisfaction, Gbefwi, who represents Karu/Keffi/Kokona Federal Constituency, Nasarawa State, emphasized that there was no court order restraining the parliament from conducting investigative inquiries.
He stated, “We are committed to the development of our country. Cement is essential to construction, akin to air for human beings. We owe our citizens a duty of care, and therefore, we are giving these companies 14 days to provide their submissions.”
Gbefwi warned that if the companies fail to comply, the House will use all available means to ensure that Nigerians are not exploited or taken for granted. He emphasized that the House will uphold the constitution and protect the interests of Nigerian citizens who struggle to afford decent housing while these companies continue to amass significant profits.
“We have observed in Lagos the dire situation where Nigerians are forced to live under bridges and pay rent. Why? If affordable housing was readily available, such extreme measures wouldn’t be necessary. Furthermore, Nigeria is abundantly blessed with natural resources. Therefore, this joint committee resolves to grant them a 14-day deadline, not just 14 working days but 14 calendar days, to ensure they submit their reports and appear before this House,” he stated.
Earlier in his speech, Speaker Abbas Tajudeen, represented by Deputy Speaker Benjamin Kalu, affirmed the House’s commitment to drafting appropriate legislation to foster industrialization in the country. He reassured the invited companies that their summons shouldn’t be perceived as a witch-hunt but as an opportunity to address challenges in the construction sector caused by frequent cement price hikes.
“We are dedicated to collaborating with both cement manufacturers and end-users to improve the quality of life for our citizens. Our legislative efforts aim to prevent a recurrence of the factors contributing to the current situation. We seek to inform Nigerians about the industry’s state and jointly find solutions to overcome challenges,” Kalu expressed.
Citing research by the African Development Bank, Kalu highlighted a housing deficit of up to 16.9 million units in Nigeria, with major cities experiencing a 20% annual rise in housing needs. He emphasized the importance of affordable cement prices to bridge this gap, noting that Nigeria’s current formal housing sector output is insufficient.
“While exchange rate fluctuations have affected commodity prices, the positive outcomes of the ‘Renewed Hope’ administration’s policies are encouraging. The recent strength of the naira against the dollar and Nigeria’s improved credit outlook, as indicated by Fitch Ratings, demonstrate progress,” he added.
In his opening remarks, Gbefwi underscored Nigeria’s significant housing and infrastructural deficits, expressing concern over the recent surge in cement prices and its adverse effects on Nigerians. He stressed the need for coordinated efforts between the government and private sector to implement policies promoting development.
Gbefwi highlighted the disparity in cement prices between Nigeria and other African countries, citing figures from Kenya, India, and Zambia. He urged collective action to address this disparity and determine the underlying reasons.
