Reps Summon Dangote, BUA, and Other Cement Manufacturers Over Price Hike

The House of Representatives has summoned Dangote, BUA, and other cement manufacturers over the recent arbitrary increase in the price of cement in Nigeria.

The lawmakers have mandated the Committees on Solid Minerals Development, Commerce, Industry, and Special Duties to investigate the price hike and report back within four weeks for further legislative action.

The motion was moved by Hon. Gaza Jonathan Gbefwi (SDP, Nasarawa) and Hon. Ademorin Kuye (APC, Lagos) and was adopted during Wednesday’s plenary session.

Gbefwi pointed out that the manufacturers have increased the price of cement by up to 50 percent, leading to sharp hikes in building blocks, the cost of building, and consequently, the price of rent in the country.

Gbefwi also noted that the raw materials for the manufacture of cement are all sourced locally and not affected by exchange rate volatility.

Factors of production and elements of the cement production flow chart are also sourced locally and have not changed significantly year on year.

Some lawmakers, such as Hon. Yusuf Gagdi (APC, Plateau) and Hon. Babajimi Benson (APC, Lagos), expressed concern over the price hike, questioning whether it was necessary given the interventions by the federal government to make business easy for cement manufacturers.

However, other lawmakers, such as Hon. Sada Soli (APC, Katsina), called for a sectoral debate to hear from the manufacturers and understand if the price hike is related to the cost of production.

Soli emphasized the importance of being compassionate when it comes to issues of the national economy and the potential impact of manufacturers withdrawing their investments.