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Senate to Investigate Sharp Rise in Cement Prices
Senate to Investigate Sharp Rise in Cement Prices
The recent surge in cement prices in Nigeria has caught the attention of the Senate, prompting plans for an investigation into the matter. This decision follows concerns raised by Deputy Senate Leader, Sen. Lola Ashiru, during a session on Wednesday regarding the escalating costs of cement and other building materials.
Sen. Ashiru proposed that the Senate’s Committee on Industries delve into the practices of cement manufacturers to uncover the root cause of the price hikes. He emphasized the importance of ensuring that these companies adhere to fair market practices and avoid engaging in anti-competitive behavior.
Underscoring the pivotal role of the construction sector in infrastructure development, Sen. Ashiru emphasized the sector’s reliance on cement as a crucial component for progress. He noted that the continuous increase in prices is impeding development efforts across the nation.
The Deputy Senate Leader highlighted that the unexpected price surge has had a detrimental impact on essential infrastructure and housing projects nationwide. He pointed out that the raw materials for cement production are sourced locally, making the sudden price hike both perplexing and worrisome.
Recognizing the indispensable nature of affordable cement and other building materials for national development, Sen. Ashiru stressed the importance of addressing the issue promptly to benefit the construction industry. He emphasized that resolving the matter in a timely manner would facilitate the advancement of constituency projects, bolster national security by creating job opportunities and stability, and enhance the overall livelihood of Nigerians.
In response to the spike in cement prices, Minister David Umahi of Works and the Minister of Housing and Urban Development held separate meetings with cement manufacturers this week to explore strategies for cost reduction. At the meeting led by Umahi, the Federal Government and cement producers reached an agreement to set the price range for a 50-kg bag of cement between N7,000 and N8,000.
During another meeting with cement producers, Arc. Dangiwa expressed concerns that the companies were leveraging fluctuations in foreign exchange rates as a pretext to significantly raise cement prices, despite the majority of materials for cement production being locally sourced. Dangiwa criticized the producers for not taking sufficient measures to manage the escalating prices. The Federal Executive Council was to take into consideration the recommendations made by the committee to address the issues brought up by cement producers.
The Senate’s decision to investigate the surge in cement prices reflects a commitment to safeguarding fair market practices, promoting economic stability, and supporting the development of vital infrastructure projects in Nigeria. The outcome of this probe and the subsequent actions taken will play a crucial role in addressing the challenges faced by the construction industry and ensuring sustainable growth and progress in the country.
