From Ndubuisi Orji, Abuja
The House of Representatives, yesterday, resolved to probe the arbitrary increase in the price of cement by manufacturers in the country.
Consequently, the House has decided to summon cement manufacturers to appear before lawmakers over the increase in the price of cement.
They are expected to appear before the Committees on Solid Minerals Development, Commerce, Industry and Special Duties, which is saddled with the responsibility of conducting the investigation. The joint Committee is expected to report back within four weeks for further legislative actions.
This followed the adoption of a motion by Gaza Gbefwi and Ademorin Kuye on “arbitrary increase in the price of cement by manufacturers of cement in Nigeria.”
Gbefwi, in his lead debate, said cement manufacturers have increased the price of their products by up to 50 per cent in recent times. He stated that the price hike has spiked the cost of building, leading to an increase in House rents across the country.
The lawmaker stated that it was worrisome that while raw materials for the manufacturing of cement including lime, silica, alumina, iron oxide, and gypsum, are all sourced locally and could not have been affected by exchange rate crisis, the price of the product has been on the rise on weekly basis.
He noted that a “cement cabal” is inflicting hardship on Nigerians “As the prices of rent and associated services have increased.”
“Cement manufacturers are capitalizing on exchange volatility to arbitrarily increase the price of the product, whose cost of production has not changed significantly since last year.”
Similarly, the chairman, House Committee on Navy, Yusuf Gagdi, expressed dismay that Nigerians are subjected to untold hardship by cement manufacturers.
“Nigeria cements are a big market for Niger Republic, Cameroon and other neighbouring countries. Why should Nigerians continue to suffer from incessant increases in the price of cement? We have a duty to rise up and defend the common man. I think it is important we invite the manufacturers to tell this house what is going on because we can’t continue like this.”
On his part, the Deputy Minority Whip, George Ozodinobi, said there was a need for mass importation of cement to force down the price of cement in the country.
“Let us open the floodgate of importation of cement into the country. This will bring down the price of the product.
“When the man from Nnewi and Chairman of the Ibeto Group, Cletus Ibeto, was given the opportunity to bring in cement into the country, the price came down drastically but he was frustrated out of the system.”
On the flipside, Chairman House Committee on Defence, Babajimi Benson, said there was need for caution as the price of a product is determined by a number of factors.
“It is either the frequent increment is caused by production cost or something else. Let us invite the manufacturers to meet with the relevant committee”, he stated.
Also, chairman, House Committee on Water Resources, Sada Soli, in his contribution said” let us understand the place of cost of production. These people bought these companies and turned them around. In most cases, they provide their own power.
“Let us be complacent when we are talking about issues concerning the national economy. Let us support these people because they can withdraw their investments.”