The House of Representatives has begun an investigation into the recent increase in cement prices, with a focus on major producers Dangote Cement Company and Lafarge Africa Plc.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
The lawmakers have asked the companies to provide detailed records of their cost of production to justify the current market price of cement.
“We are interested in the cost of production from 2020 to date that justified the current price of cement, which is over N10,000 in most parts of the country,” said Jonathan Gaza, Chairman of the joint committee.
The committee has requested documents on the cost of production, including the average daily consumption of coal, gas, gypsum, limestone, clay, laterite, and the average daily production of cement from 2020 to date. They have also asked for details of all imported components for cement production and their prices from 2020 to date.
Dabo Ismail, a member of the committee, noted that Dangote Cement Company had continued to make increasing profits in the country despite sourcing most of its raw materials locally. “In 2022, the company declared a profit of N524 billion, N553 billion in 2023, and have so far made N166.4 billion in 2024. There is no reason why the price of cement should keep rising in the market to the detriment of Nigerians while producers are smiling to the banks,” he said.
READ ALSO: Kim Kardashian Surprising Fear Revealed
Arvind Pathack, Group Managing Director of Dangote Cement Company, explained that 95 percent of production costs are either imported or linked to forex. He cited the devaluation of the Naira, logistics issues, and the high cost of building materials as contributing factors to the price increase.
“The cost of building materials like reinforcement, granite, and aluminum window has increased by 177 percent to 283 percent, while cement has increased by 166 percent between 2023 and 2024,” Pathack said. He added that the company sells
