The Senate has decided to conduct an investigation into the abrupt increase in cement prices by manufacturers in Nigeria.
This decision came after the Deputy Senate Leader, Sen. Lola Ashiru, raised a point of order titled “Need to Urgently Address the Increase in Cement Price and other Building Materials in Nigeria” during Wednesday’s plenary.
In presenting the order, Ashiru urged the Senate to direct its Committee on Industries to investigate the operations of cement manufacturing industries in Nigeria. The purpose of this investigation is to determine the factors contributing to the rise in cement prices.
He further called on the Senate to instruct the Committee on Industries to ensure that cement manufacturers adhere to fair market practices and refrain from engaging in anti-competitive behavior.
Ashiru emphasized the importance of the construction industry in infrastructure development, highlighting its heavy reliance on cement and other building materials. He noted that the consistent increase in cement prices has hindered progress in various developmental projects across the country.
”This is because key building materials, particularly cement and iron rod, are now sold at prohibitive rates, with cement and iron rod recently rising from N5,500 per bag in January 2024 to about N14,000 and N8,500 to N17,000 respectively,” he said.
He also highlighted that the abrupt price hike has negatively affected crucial infrastructure and housing projects in the country.
Ashiru pointed out that the raw materials for cement production are sourced entirely locally, without any reliance on imports, which raises suspicions and puzzles regarding the sudden surge in prices.
“Cognisant that affordable cement and other building materials 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, strengthen national security by providing jobs and stability, and improve the livelihood of Nigerians generally,” he said.