There has been outrage over the sudden hike in the price of cement across Nigeria. As of May 2024, the cost of cement reached a record high, fluctuating between N8,000 and N10,000 per bag.
This made the lawmakers begin to probe the price hike in the country’s cement and other building products.
The major cement producers in Nigeria are; Dangote Cement Plc, Lafarge Africa Plc, BUA Cement Plc, Ibeto Cement, and United Cement Company of Nigeria Limited (UniCem)
The legislative chamber on May 7, 2024, issued a 14-day ultimatum to cement manufacturers to appear before its joint committee and make their submissions on the arbitrary increment of cement prices in Nigeria.
The Chairman, House Committee on Solid Minerals, Gaza Jonathan Gbefwi, gave the summon at a public hearing to investigate the arbitrary increase in the price of cement in Nigeria by cement manufacturers, organised by House Joint Committees on Commerce, Industry, Special Duties, and Solid Minerals in Abuja.
He stated that the committee is interested in the production costs from 2020 to present, which justify the current price of cement, exceeding N10,000 in most parts of the country.
Gaza requested that companies provide their average daily consumption of coal, gas, gypsum, limestone, clay, and laterite, along with their average daily production of cement from 2020 onward.
He added that companies should furnish details of all imported components used in cement production, including their prices from 2020 to date.
The lawmaker also insisted that companies should disclose details of local components used in cement production, including prices in both naira and dollars if applicable during the period under review.
Furthermore, he mandated that companies submit a summary of monthly cement prices and quantities produced from 2019 to date, along with audited accounts, bills of lading, and customs duties paid during the same period.
Additionally, he required companies to provide specifics regarding tax waivers, incentives received, as well as contracts for gas and explosives.
Representative Dabo Ismail (All Progressives Congress-Bauchi State), a committee member, highlighted that Dangote Cement Company has consistently recorded significant profits in Nigeria, despite sourcing most of its raw materials locally.
He noted that the company reported profits of N524 billion in 2022, N553 billion in 2023, and had already reached N166.4 billion in 2024.
The lawmaker emphasised that there is no justification for the continuous rise in cement prices in the market while producers are recording substantial profits to the detriment of Nigerians.
Why Dangote Cement Management might be arrested
Meanwhile, on July 9, 2024, the House of Representatives’ Joint Committee on the arbitrary increase in the price of cement, threatened to arrest the management of Dangote Cement if it fails to appear at its next hearing as the officials of the cement company were absent; a development that did not sit well with the committee. The next hearing is set to take place at the end of July.
The special panel while advocating for the downward review of cement prices, expressed worry that the cost of the product has become unaffordable to many Nigerians, given the current economic situation in the country.
It mandated the Cement Manufacturers Association of Nigeria and the Central Bank of Nigeria to appear before it in two weeks to deliberate on measures necessary to address the situation for the benefit of the people.
In a brief remark at the event, Gbefwi accused cement manufacturers of making life difficult for the masses, smiling at the banks without empathy.
“They want to over-profit without any sense of empathy for the citizens that have given them this platform.
“On Dangote, my ruling is simple. The laws have given us the necessary powers but we owe you a duty of care. We are going to give you one more chance. We are going to communicate a date.
“Failure to comply with that date, a subpoena will be issued. A warrant of arrest will be given for you to make an appearance before the National Assembly. No single individual is bigger than the parliament of his country. No single Nigerian is bigger than the National Assembly”, Jonathan warned.