The National Assembly has embarked on an investigation into the continuous hike in cement prices in the country. The joint committee tasked with the investigation has summoned major cement producers, including Dangote Cement Company and Lafarge Africa Plc, to provide detailed information on their cost of production.
Johnathan Gaza, the committee chairman, aims to determine a fair price for cement and ensure that Nigerians are not exploited by the industry. The companies have been asked to submit documents to ensure a complete audit of their cost of production, including the cost of raw materials, labour, and other expenditures, as well as their average daily consumption of key inputs like coal, gas, and gypsum.
The investigation follows concerns that cement prices have drastically increased in recent years, with a bag of cement now costing over N10,000 in some parts of Nigeria. The committee is determined to get to the bottom of the price hike and ensure that the industry operates transparently and fairly.
Dangote Cement and Lafarge Africa representatives were interrogated on Friday during a panel hearing.
They both attributed the price hike to economic challenges facing the country. They also mentioned of high cost of raw materials, high cost of transportation, and foreign exchange losses.
However, the committee remains doubtful, noting that the companies have continued to make significant profits despite the challenges. The committee has also criticized the Federal Competition Consumer Protection Commission (FCCPC) for failing to protect consumers from exploitation by the industry
