Business
House Committee Investigates Cement Price Hikes, Demands Cost Justification from Major Producers
The Joint Committee of the House of Representatives has launched an investigation into the significant rise in cement prices across Nigeria.
Major cement producers, including Dangote Cement Company and Lafarge Africa PLC, have been requested to submit comprehensive documentation that outlines their production costs in an effort to justify the current market prices.
The committee, led by Chairman Rep. Jonathan Gaza (APC-Nasarawa), has resolved to conduct visits to the production facilities of these companies after examining their financial records.
The goal of these visits is to better understand the cost structure of cement production and determine a fair and justifiable price for consumers across Nigeria.
During a public hearing held in Abuja on Friday, Rep. Gaza articulated the committee’s concerns regarding the steep increase in cement prices, which have exceeded N10,000 in several regions.
He specified that the companies are required to provide detailed data on their daily consumption of essential raw materials, including coal, gas, gypsum, limestone, clay, and laterite, as well as their average daily cement production figures from 2020 to the present.
In addition, the committee has requested detailed information on both imported and local components used in cement production, including their costs in naira and dollars.
The companies must also provide a summary of monthly prices and quantities of cement produced from 2019 onward, along with their audited financial statements, bills of lading, and customs duties paid during the reviewed period.
Furthermore, the companies are required to disclose any tax waivers or incentives they have received and provide details of contracts related to gas and explosives.
Rep. Dabo Ismail (APC-Bauchi State), a member of the committee, raised concerns about the profitability of Dangote Cement Company, despite the company sourcing most of its raw materials locally.
He highlighted that the company reported significant profits—N524 billion in 2022, N553 billion in 2023, and N166.4 billion in 2024—while questioning why the price of cement continues to climb, thereby causing financial strain for many Nigerians.
In response to these concerns, Dangote Cement Company’s Group Managing Director, Mr. Arvind Pathack, provided an explanation that 95 percent of their production costs are tied to imported materials or foreign exchange rates.
He pointed out that there has been a dramatic increase of 100 to 333 percent in the cost of major inputs such as gas, AGO, gypsum, imported coal, spare parts, new trucks, and tires.
Pathack also highlighted the challenges posed by logistical issues, such as deteriorating road conditions that increase delivery times and maintenance costs for trucks.
He noted that the company faces significant foreign exchange losses—amounting to N150 billion annually—due to insufficient support from the Central Bank of Nigeria (CBN), as well as high-interest rates on loans.
Pathack further explained that while the company sells cement at an average price of N7,200, higher prices reported in the market, sometimes exceeding N10,000, are attributable to retailer markups rather than the company’s pricing.
He compared cement prices in Nigeria with those in other African countries, indicating that Nigeria’s prices are relatively lower in comparison.
The committee urged the cement companies to review their policies and operations with the aim of reducing cement prices across the country. Chairman Rep. Gaza expressed optimism that the investigation would lead to a reduction in prices.
He criticized the Federal Competition and Consumer Protection Commission (FCCPC) for its perceived inaction, attributing the high cement prices to the commission’s failure to address the issue effectively. The committee’s engagement is expected to lead to more transparency and potentially lower prices for consumers.
Aliko Dangote speaks on his lineage and addresses not having a son as he was asked about not having a son to carry his name and achievements.
“That is not my priority because God controls everything. You can pray for God to give you a son, but he might be the one to take down the name of the family.”
Instead, he shared that he does not mind not having a son. “I don’t think a son would have done better than the three daughters I have.”
Aside from that, he was also asked about giving advice to young Nigerians. “Work hard, be consistent, focused and know what you want to do.”
It can be reported that following Aliko Dangote’s investment opportunity, some investment platforms are experiencing huge traffic, causing their platforms to become slow and go down.
Two platforms openly announced their issues. Bamboo said “Hey everyone, we’re getting a much higher than expected traffic trying to get into the Dangote IPO and it’s making it difficult for some users to log into the Bamboo app. We’re working on a fix and it will be up and running shortly.”
Cowrywise also said “We’re currently seeing more traffic than usual on the Cowrywise app. Our team is already on it and working to get things back to normal. Thanks for your patience, everyone.”
Nigerian economist Bismarck Rewane advises Nigerians financially, sharing that Nigerians should engage in the Dangote Refinery initial public offering (IPO). He stated that it was a good investment.
He shared “You are better off with your N5,000 share than selling your PVC for N10,000 or N15,000 and consuming it,” Rewane said.
“If you can get 10 million shareholders to participate in the IPO, the Dangote Refinery will have the largest number of shareholders in the world,” he said.
“You Have to Vote Right” — Timaya Speaks on Nigeria’s Political Future
Rema Names His Favourite Streamers for Entertainment, Fans React
