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Cement price hike: Reps issue Dangote, BUA, others 14-day ultimatum

THE House of Representatives has given a 14-day ultimatum to Dangote Cement, BUA, IBETO, and other stakeholders to appear before its Joint Committee regarding the increase in cement prices in the country.

This ultimatum was issued after the companies refused to attend the lawmakers’ investigative hearing on Tuesday, May 7.

The joint committee, consisting of the House committees on solid minerals, Commerce, Industry, and Special Duties, was tasked with investigating’ the arbitrary increase in the price of cement in Nigeria by cement manufacturers’.


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This was as the House summoned the Minister of Solid Minerals Development, Dele Alake.

The committee had earlier invited the minister to appear before the committee. He also failed to appear on Tuesday.

The minister was directed to appear on Tuesday, May 21, while Dangote, BUA, IBETO, and others were instructed to appear on Monday, May 20.

The ICIR reports that the Federal Government and cement manufacturers, on February 13, resolved to regulate prices between N7,000 and N8,000 for a 50kg bag of cement.

Similarly, in April, the Senate resolved to probe the hike in the prices of cement and other building products in the country.

Speaking on the prices, the chairman of the joint committee, also the chairman of the committee on Solid Minerals, Jonathan Gaza Gefwi, expressed concern over the huge gap in cement prices between Nigeria and other African countries, 

He noted that the companies’ actions were a pointer to their insensitivity to the plight of Nigerians.

According to him, an investigation into the surge in cement prices in the country has shown that cement prices in other countries like Kenya, India and Zambia for 2021 alone showed that Nigeria had the highest price of cement using the official exchange rates for each country.



He said, “Nigeria’s price of cement doubles that of India at a difference of 69 per cent. Similarly, the price is 29 per cent higher than that in Kenya and 39 per cent higher in Zambia. Hence, the need for us to come together and find out why in order to bring succour to our citizens while protecting investors alike.

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“Our concern is for all legitimate businesses, especially cement production companies in Nigeria, to thrive and deliver their objective and services to the people in such a manner that can foster development”.




     

     

    The chairman of the joint committee reiterated the significance of the public hearing and the need to counteract the notion that parliamentary committees had no powers to invite private outfits.

    He added, “It is on record that there is no Order of the Courts presented restraining the committee from exercising its functions under section 88(2)(b) of the 1999 Constitution as Amended.

    On his part, the chairman of the House Commerce Committee, Ahmed Munir, stated that any entity invited that fails to appear before the joint committee would validate claims that the cement price hike was arbitrary.

    The ICIR reports that a 50-kilogram bag of cement has surged to over N10,000, up from N5,000 within six months.

    Usman Mustapha is a solution journalist with International Centre for Investigative Reporting. You can easily reach him via: umustapha@icirnigeria.com. He tweets @UsmanMustapha_M

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