House Of Reps Committee Demands Justification For Cement Price Hike

House Of Reps Committee Demands Justification For Cement Price Hike....KINDLY READ THE FULL STORY HERE▶

The joint committee of the House of Representatives investigating the recent spike in cement prices has summoned major industry players to provide documentation on their production costs in order to substantiate the current market prices……. CONTINUE READING 

During a public hearing in Abuja on Friday, Chairman Jonathan Gaza (APC-Nasarawa) announced that the committee will scrutinize the financial records of Dangote Cement Company and Lafarge Africa Plc before visiting their production facilities. The goal is to determine a fair pricing strategy that benefits all Nigerians.

Gaza emphasized the committee’s interest in reviewing production costs from 2020 onwards, which have resulted in cement prices exceeding N10,000 in many regions of Nigeria. Key details requested include daily consumption rates of raw materials such as coal, gas, gypsum, limestone, clay, and laterite, as well as monthly production quantities and audited financial statements since 2019.

The lawmakers also seek comprehensive reports on imported components’ costs, local sourcing details, tax waivers, incentives received, and contracts related to gas and explosives.

Member Dabo Ismail (APC-Bauchi State) criticized Dangote Cement for consistently reporting substantial profits despite access to local raw materials. He cited profit figures of N524 billion in 2022, N553 billion in 2023, and N166.4 billion so far in 2024, questioning why cement prices continue to rise while producers reap significant financial gains.

Arvind Pathack, Group Managing Director of Dangote Cement Company, attributed cost increases to a significant rise in prices for key production inputs like gas, AGO, gypsum, imported coal, spare parts, new trucks, tires, and petrol, which have surged between 100% and 333%.

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