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.
Business
“Some People Want To Stop Dangote Refinery From Selling” – Adeboye
Pastor Enoch Adeboye, the General Overseer of the Redeemed Christian Church of God, recently shared his concerns about a purported conspiracy involving an oil cabal in Nigeria, working in collusion with international oil companies (IOCs) to undermine the operations of private refineries, particularly the Dangote Petroleum Refinery.
Speaking at the November 2024 Abuja Special Holy Ghost service, Adeboye called on Nigerians to pray for divine intervention,
He believes that these unscrupulous oil marketers are intentionally working to create difficulties for the public, especially in light of their efforts to hinder the operations of the Dangote refinery.
Adeboye pointed out that Dangote’s refinery came as a response to the failure of the public refineries and the ongoing struggle Nigeria faces in trying to refine its own crude oil.
Despite being one of the world’s largest oil producers, Nigeria continues to rely heavily on importing refined petrol, a situation that has sparked frustration and concern among citizens.
“Are we under a curse?” Adeboye questioned, highlighting the irony that the country with vast oil reserves struggles to refine its own products.
He further praised Dangote for his determination to help alleviate the suffering of Nigerians.
“He is not my relative, not even from my village, and not a Christian. But as a Nigerian, he saw the suffering of the people and decided to build a refinery that could work,” Adeboye remarked.
In a positive development for Dangote Refinery, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement to buy petrol directly from the refinery, bypassing the usual importation channels.
However, Nigerians are still facing high fuel prices, with petrol being sold for as much as N1060 to N1200 at various NNPC stations and other retail outlets across the country, leaving many questioning when the country will truly see the benefits of its oil wealth.
Business
Dangote Refinery’s New Deal with IPMAN to Lower Petrol Price by N50 per Litre
The Independent Petroleum Marketers Association of Nigeria (IPMAN) recently revealed that Premium Motor Spirit (petrol) will become more affordable for Nigerians, with a planned price reduction of N50 per liter.
This announcement came from IPMAN’s National President, Abubakar Maigandi, during a Tuesday interview with Channels Television.
Maigandi disclosed that the price cut follows a recent agreement between IPMAN and Dangote Refinery, which will now directly supply petrol to IPMAN members at a lower rate.
Under the new agreement, Dangote Refinery will sell petrol to IPMAN members at N940 per liter for depot purchases and N990 per liter for trucks.
With these adjusted rates, independent marketers who have been selling petrol for as high as N1,200 per liter in locations like Maiduguri will now be able to drop their prices to around N1,150 or potentially even lower.
Maigandi mentioned that the adjustment depends on location, as transport and logistics costs can vary, but he expects to see the benefits reach customers soon.
Maigandi also shared some insight into the new purchasing arrangements.
IPMAN members have two main options: they can either transport fuel directly from the Dangote Refinery to their depots or purchase it directly for trucks.
These measures are expected to streamline the distribution process, reducing dependence on the Nigerian National Petroleum Company Limited (NNPCL) as the primary distributor of Dangote’s petrol.
Currently, Nigerians are paying between N1,060 and N1,200 per liter at NNPCL outlets and other stations, so the new pricing arrangement with IPMAN is a welcome move for the average consumer facing high fuel costs.
Business
Bitcoin Nears $90,000 as Investors Remain Optimistic For Trump’s Policies
Bitcoin nears $90,000 as investors are positive about the crypto-friendly U.S under President Trump’s Administration. Since the conclusion of the US election, cryptocurrency has risen over 30% reaching a new record of $89,637 on Tuesday.
Investors now expect more increase with Trump accepting crypto and wanting to create a new policy. During his first term people called Trump a ‘scam’ for believing in crypto, now investors await his plan with optimism.
However Bitcoin and other cryptocurrencies are not fixed and are known for experiencing fluctuation in prices.
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