Senate Probes Manufacturers over Hike in Cement Prices
Wants importation of building materials as stopgap measure
The Senate yesterday resolved to probe the activities of the major cement manufacturing firms in Nigeria over the sudden increase in the prices of the product and other building materials in the country.
The Upper Chamber said its probe would enable it to find a solution to the problem. It also urged the federal government to allow the importation of cement as a stopgap measure.
It consequently mandated the Senator Francis Fadahunsi-led Senate Committee on Industries to conduct an investigation into the activities of cement manufacturing industries operating within Nigeria.
This it stated, was to ascertain whether market manipulation or monopolistic practice were the reasons behind the price hike and report back to Senate in two weeks.
The Red Chamber also mandated the committee to ensure that cement manufacturing companies adhere strictly to fair market practice and desist from anti competitive prices.
The Senate resolutions were sequel to a point of order titled: "Need to urgently address the increase in cement prices and other building materials in Nigeria ", raised by Senator Lola Ashiru of the All Progressives Congress (APC), Kwara South.
Ashiru who came under Order 42 on “personal explanation”, said that the construction industry was vital for infrastructure development and economic growth as it heavily relies on cement and other building materials for its sustenance.
He expressed worry that the recent trend of an almost daily increase in the price of the product has severally hampered progress in various developmental endeavours across the country.
He added that the sudden and stiff price increase was having a detrimental impact on critical infrastructure, housing and the lawmakers' own constituency projects across the country.
Part of his motion read: "Cognisant that affordable cement and other building are indispensable to national development, addressing the issue in time will be advantageous to the construction industry.
"This is because it will ensure the progress of constituency projects and strengthen national security by providing jobs and stability and improve the livelihood of Nigerians generally," he said
He expressed worry that the daily increase in cement prices was hampering progress in the construction industry, lamenting that cement rose from N5,000 to N15,000 and is having negative impact on the construction industry
He said: "Contractors are facing serious problems, leading to stalling of projects which is threatening employment of the youths. High youth unemployment is linked to increase in crime."