The Senate plans to investigate the recent sharp increase in cement prices in Nigeria.
This decision came after Deputy Senate Leader, Sen. Lola Ashiru, raised concerns about the rising costs of cement and other building materials during a session on Wednesday.
Ashiru suggested that the Senate’s Committee on Industries should examine the practices of cement manufacturers to determine the cause of the price hikes.
He also called for the committee to ensure these companies follow fair market practices and avoid anti-competitive behaviour.
Highlighting the construction sector’s crucial role in infrastructure development, Ashiru pointed out that its dependence on cement is essential for progress.
The continuous rise in prices, he noted, is hindering development efforts across the country.
- ”This is because key building materials particularly cement and iron rod prices are now sold at prohibitive rates with cement and iron rod recently rising from N5,500 per bag in Jan. 2024 to about N14,000 and N8,500 to N17,000 respectively,” he said.
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More insights
- The Deputy Senate Leader also mentioned that the unexpected rise in prices has negatively affected crucial infrastructure and housing throughout the country.
- Ashiru pointed out that cement’s raw materials are sourced entirely locally, with no imports involved, making the sudden price hike both puzzling and concerning.
- “Cognisant that affordable cement and other building materials are indispensable to national development, addressing the issue in time will be advantageous to the construction industry.
- “This is because it will ensure the progress of constituency projects and strengthen national security by providing jobs and stability and improve the livelihood of Nigerians generally,” he said.
What you should know
- In response to a rise in cement prices, Ministers David Umahi of Works and the Minister of Housing and Urban Development held separate meetings with cement manufacturers this week to explore cost reduction strategies.
- At the meeting led by Umahi, the Federal Government and cement producers agreed on setting the new price for a 50kg bag of cement to range between N7,000 and N8,000.
- Arc. Dangiwa, in another meeting with cement producers, expressed concerns that the companies were exploiting fluctuations in foreign exchange as an excuse to significantly hike cement prices, despite most materials for cement production being locally sourced.
- Dangiwa also criticized the cement producers for not doing enough to manage the escalating cement prices.
- It was decided that a committee would be formed to prepare recommendations addressing the cement producers’ concerns for the Federal Executive Council’s consideration.
Recommended reading: Cement prices to remain high in 2024 – Report
