The House of Representatives has issued a 14-day ultimatum to leading cement manufacturing companies, including Dangote Cement, BUA, and Lafarge Ashaka, to appear before the parliamentary committee and address the nationwide concerns regarding the arbitrary increases in cement prices.
In a public hearing organized by the House Joint Committees on Commerce, Industry, Special Duties, and Solid Minerals in Abuja on Tuesday, Mr Gaza Gbefwi, the Chairman of the House Committee on Solid Minerals, directed the companies to present their submissions on the matter within the given timeframe.
As reported by The PUNCH on March 13, 2024, a motion addressing the “Arbitrary increase in the price of cement by the cement manufacturers in Nigeria” was adopted by the House, leading to the establishment of a joint committee tasked with investigating the issue and recommending further legislative actions.
During the public hearing, none of the cement companies appeared or sent representatives to make submissions on their behalf, which sparked disappointment among the committee members.
Expressing his discontent, Mr Gbefwi, who represents Karu/Keffi/Kokona Federal Constituency, Nasarawa State, emphasized that the House had not received any court order restraining it from inviting individuals or companies for investigative purposes. He further stated that the committee would utilize its constitutional powers to ensure Nigerians are not exploited and taken for granted.
Gbefwi added, “Cement is to building what air is to every human being. We owe them a duty of care because they are equally Nigerians. If these companies fail to comply within the given 14-day period, we will take appropriate actions. Our citizens should not suffer while these companies declare huge profits daily.”
The Speaker, Abbas Tajudeen, represented by the Deputy Speaker, Benjamin Kalu, assured the invited companies that the parliament’s intention was not to engage in a witch-hunt but to assist in resolving the challenges faced by the building sector due to frequent cement price hikes. He pledged the readiness of the House to enact suitable legislation to promote industrialization in the country.
Kalu stressed the importance of collaboration between cement manufacturers and end-users to improve the quality of life and standard of living for Nigerian citizens. He highlighted the adverse effects of rising cement prices on the construction sector and the overall economy, emphasizing that addressing this issue is of paramount importance.
Referring to research conducted by the African Development Bank, Kalu pointed out that there is a housing deficit of up to 16.9 million units, with cities like Lagos, Ibadan, Kano, and Abuja experiencing a 20% annual increase in housing needs. He emphasized that bridging this gap necessitates affordable and accessible cement prices for both the government and the private sector.
Furthermore, Kalu acknowledged the impact of external factors such as exchange rates on price increases but highlighted positive developments, including the strength of the Nigerian naira against the dollar and the improved credit outlook for Nigeria as assessed by Fitch Ratings.
In his welcome address, Mr Gbefwi underscored the urgent need to address Nigeria’s high housing deficit and infrastructural challenges. He expressed concern over the recent surge in cement prices, which has inflicted hardships on Nigerians. Gbefwi also highlighted the comparatively higher cost of cement in Nigeria when compared to other African countries, using the current exchange rates.
He emphasized the importance of collaborative efforts to examine and rectify the reasons behind the price disparities, citing examples from countries like Kenya, India, and Zambia, where cement prices are significantly lower.
The joint committee has resolved to give the cement companies a 14-day period, starting from the hearing, to present their submissions and appear before the House.
