The Joint Committee of the House of Representatives investigating arbitrary rise of cement price in the country has asked major producers in the industry including Dangote Cement Plc and Lafarge Africa Plc, to tender documents on cost production to justify the price of cement in the market.
The committee resolved to visit production plants of the companies after going through their books to ascertain the cost of production with a view to determining a fair price of cement for Nigerians.
The chairman of the joint committee, Jonathan Gaza (APC-Nasarawa), made the demand at a public hearing while quizzing Dangote Cement and Lafarge in Abuja on Friday, July 19, 2024.
Gaza said the committee is 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.
The lawmaker stated that the companies should give its average daily consumption of coal, gas, gypsum, limestone, clay, laterite, and the average daily production of cement from 2020 to date.
Gaza said the companies should provide details of all imported components for the production of cement and their prices from 2020 to date.
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He said the companies should also provide details of local components for the production of cement and their prices in naira and dollars, if any, in the period under review.
He stated that the companies should provide a summary of the monthly prices and quantity of cement produced from 2019 to date as well as their audited accounts of the company, bills of laden and duties paid to customs within the period under review.
Gaza added that the companies should equally provide details of tax waivers and other incentives enjoyed plus gas and explosives contract details.
A member of the committee, Dabo Ismail (APC-Bauchi), said Dangote Cement had continued to make increasing profits in the country despite being able to source most of its raw materials locally.
Isnail said in 2022, the company declared a profit of N524 billion, N553 billion in 2023, and had so far made N166.4 billion in 2024.
The lawmaker said there is no reason why the price of cement would keep rising in the market to the detriment of Nigerians while producers are smiling to the banks.
The Group Managing Director (GMD) of Dangote Cement Plc, Arvind Pathack, said 95 per cent of production cost are either imported or linked to forex.
He explained that there had been between 100 to 333 per cent increase in the price of major cement input materials, including gas, AGO, gypsum, imported coal, spare parts, new trucks, tyres, and petrol, among others.
The committee, thereafter, admonished the companies to look into their policies and operations with a view to reducing the price of cement in the country.
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