On Wednesday, March 13, the House of Representatives agreed to probe the country’s cement makers’ arbitrary price increases.
The House resolved to call cement makers, as well as the Ministers of Solid Minerals Development and Trade and Investment, to brief the House in plenary on the causes for rising cement prices and attempts to reduce them.
This came after a motion on notice supported by Gaza Jonathan Gbefwi (SDP, Nasarawa) and Ademorin Kuye (APC, Lagos).
Moving the motion, Gbefwi stated that cement producers have increased the price of their products by up to 50%, resulting in substantial increases in building blocks, building costs, and, as a result, the price of rent across the country.
According to him, the raw materials used in cement production, such as lime, silica, alumina, iron oxide, and gypsum, are all sourced locally and are unaffected by exchange rate fluctuations.
He stated that all production components and features of the cement manufacturing flow chart are acquired locally and do not change considerably year after year.
He claimed that cement makers are taking advantage of exchange instability to arbitrarily raise the price of a product whose production costs have been stable since last year.
He accused people he referred to as the cement cabal of unconscionably causing hardship on Nigerians as rent and other costs have risen.
He further said that the rise is a direct affront and sabotage of President Bola Ahmed Tinubu’s administration’s efforts to provide comfort to the people and should be handled promptly.
Contributing to the motion, Oboku Oforji (PDP, Bayelsa) stated that the house must not turn a blind eye while cement makers inflict misery on Nigerians through arbitrary rises in cement prices.
Yusuf Adamu Gagdi (APC, Plateau) accused cement producers of undermining the government’s efforts to provide cheap houses to Nigerians.
Gagdi stated that while cement costs rose over the average Nigerian’s reach, others in neighboring nations benefited from the products.
Billy Osawaru (APC, Edo) queried why cement makers were increasing cement prices virtually daily while declaring billions of naira in profit. Cement is too expensive for the common Nigerian.
George Ozodinobi (LP, Anambra) advocates for the mass importation of cement into the country, claiming that this will drive down the price of locally made cement.
He claimed that once the Yar’adha administration granted Ibeto a license to import cement, cement makers in the country drove him out of business.
Sani Madaki (NNPP, Kano) accused cement makers of sabotage and violating constitutional requirements, claiming that what they are doing is corrupt.
However, Sada Soli (APC, Katsina) advised against taking extreme action against the manufacturers, stating that Nigeria operates a free market economy and that those who contributed to the motion were socialist.
He stated that, while he is on the side of the Nigerian people, it is important to note that the country has no monopoly on cement manufacturing, and that the cement facilities were sold to the best bidders, identifying Nigeria as Africa’s net cement exporter.
He stated that Nigerians must understand that cement producers bear the cost of energy because they must generate their own power using gas priced at an international rate, but the lawmakers objected.