Cement Price Surge: House of Representatives Issues 14-Day Notice to Dangote, BUA, Others

The joint committee, which includes members from the House committees on Solid Minerals, Commerce, Industry, and Special Duties, was established by the House to probe the sudden increase in cement prices by manufacturers in Nigeria.

Dangote Cement, BUA, IBETO, and other key players have received a 14-day notice to present themselves before the House of Representatives Joint Committee to discuss the recent hike in cement prices within the nation.

This directive comes after these companies did not attend the scheduled investigative hearing on Tuesday.

The joint committee, which includes members from the House committees on Solid Minerals, Commerce, Industry, and Special Duties, was established by the House to probe the sudden increase in cement prices by manufacturers in Nigeria.

The House has also called upon the Minister of Solid Minerals Development, Dele Alake, who did not attend the hearing on Tuesday, to appear before the committee.

The minister is expected to appear on Tuesday, May 21, while Dangote, BUA, IBETO, and others have been scheduled for Monday, May 20, 2024.

Rep. Jonathan Gaza Gefwi, Chair of the joint Committee and the Committee on Solid Minerals, criticized the companies for ignoring the summons, indicating their disregard for the struggles of the Nigerian people.

In his preliminary statement, Rep. Gefwi noted that a comparison of cement prices in countries such as Kenya, India, and Zambia in 2021 revealed that Nigeria's prices were significantly higher when considering the official exchange rates of these countries.

He stated, "The price of cement in Nigeria is twice that of India with a 69% difference, 29% more than Kenya's, and 39% above Zambia's. This necessitates our collective effort to understand the reasons behind this and to provide relief to our citizens while also safeguarding the interests of investors.

"It is crucial for all legitimate businesses, particularly those in the Nigerian cement industry, to prosper and serve the populace in ways that promote development."

The chairman further stressed the significance of the public hearing and the need to dispel any misconceptions held by some companies under investigation that parliamentary committees lack the authority to summon private entities.

He clarified, "There is no court order preventing the committee from performing its duties as per section 88(2)(b) of the 1999 Constitution as amended.

"Parliamentary committees routinely conduct public hearings to gather evidence from the public, which informs their decisions on matters impacting the citizens.

"Being recognized as a private entity under the law does not completely exempt an organization from the committee's investigative powers, particularly when the entity's goals heavily depend on public resources.

"I must also highlight the Legislative Powers and Privileges Act sections 4,5,6, and 7, which empower committees to invite, investigate, and summon any individual to provide evidence on any issue, whether public or private, especially when it concerns the citizens and those they represent."

Additionally, Rep. Ahmed Munir, Chair of the House Committee on Commerce, remarked that any entity failing to respond to the committee's invitation would lend weight to the suspicion that the cement price increase was an arbitrary decision, exacerbating hardship for Nigerians and hindering the government's efforts to address the housing shortage.

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