The Chairman House Committee on Solid Minerals, Rep. Gaza Gbefwi, issued the summon at the opening ceremony of the public hearing to Investigate the arbitrary Increase in the price of cement in Nigeria by cement manufacturers, organised by House Joint Committees on Commerce, Industry, Special Duties and Solid Minerals
The House had on March 13, this year moved a motion on the “arbitrary increase in the price of cement by cement manufacturers in Nigeria”, and constituted the Joint Committee to investigate and report back.
At the opening session of the investigative hearing which was was declared open by the Deputy Speaker Hon Benjamin Okeize all the manufacturing companies were absent despite being duly informed about the public hearing
Speaking on the urgly development Rep. Gbefwi said the House and National Assembly was not in receipt of any court order restraining it from inviting anybody for an investigation.
According to him, “We are trying to see to the development of our country. Just as it was emphasized in the opening remarks cement to building is what air is to each and every human being. Let me sound this warning the House of Representatives and the National Assembly is not in receipt of any court order restraining us from inviting anybody.
“And to this end, in the human nature of the House, because we owe them a duty of care, because they are equally Nigerians we are giving them 14 days in which to make their submissions if not, as we have sworn to uphold the constitution we will use everything within our powers to make sure that Nigerians, number one: are not taken for granted and number two are not exploited. We will not sit back while some companies everyday declare billions in naira and dollars and our people can barely afford to get a decent roof over their heads.
“We saw in Lagos where you have Nigerians under the bridge and paying rent. Why? If this products were available, I do not believe we’d gave to go to those lengths. Moreover, that God gas blessed us with this resources in abundance.
“So, as it is the resolution of this joint committee, we are giving them 14 days from now, and not 14 working days, 14 effective days to make sure that they make their submissions and appear before this House”.
Speaking earlier while declaring open the public hearing, the Deputy Speaker of the House, Benjamin Kalu, assured that the House was actively working to establish appropriate legislation that promotes and encourages industrialization, as well as supports small and medium enterprises.
He explained that the hearing is as a result of the deep concern of the House for the people it represents and the need for transparent engagement with key stakeholders in the cement industry, particularly the manufacturers.
According to him, the persistent increase in cement prices has had detrimental effect on the ‘built environment’ and Nigeria at large, which is evident in a huge housing deficit presently in Nigeria.
“We are committed to collaborating with both cement manufacturers and end-users, believing this is the most effective way to improve the quality of life and standard of living for our citizens. We are
also dedicated to enacting laws that prevent a recurrence of the factors
that led to the current situation.
“Our goal is to inform Nigerians about the industry’s current state and collaboratively find solutions to navigate the challenges. The persistent rise in cement prices has had a detrimental impact not only on the built environment but also on the entire economy. Cement is a fundamental component used in construction projects like bridges, dams, houses, waterworks, and road infrastructure. This makes addressing this issue paramount.
“According to a study by researchers at the African Development Bank in the ‘Housing Market Dynamics in Africa’ book, there is a housing deficit of up to 16.9 million units. According to the World Bank, Lagos, Ibadan, Kano, and Abuja, have a 20 percent rise in housing needs yearly. The current total output in the formal housing sector is estimated at no more than 100,000 units”.
Deputy Speaker asserted that bridging this gap requires affordable and accessible cement prices for both the government and the private sector.
“While factors like exchange rates have contributed to the price increases
across various commodities, it is encouraging to see the positive results of the “renewed hope” administration’s policies under the leadership of His Excellency, Bola Ahmed Tinubu. Notably, the Naira has shown remarkable strength against the dollar in recent weeks, and Fitch Ratings, a global credit rating agency, recently revised Nigeria’s credit outlook to positive
from stable,” he added.
In his welcome address, Rep. Gbefwi said that Nigeria has high housing deficit of about 3 million houses and a huge infrastructural deficit.
He said that the issue of cement prices increase is an all important issue that affects not just the building and construction industry but the economy and the generality of our citizens, .
According to him; “Indeed the recent events that led to the skyrocketing of the price of cement in Nigeria has been worrisome and of great concern as its inflicting untold hardship on Nigerians.
“To close this gab, both Government and the private sector must be articulate and deliberate in puting the right policies and parameters in place that can help promote, induce and or encourage development.
Therefore, should price of cement which is a major component of our infrastructural development continues to soar uncontrollably, the tendency to stifle life out of that sector is high and the consequences are dare and detrimental.
“It is in the light of this, that the parliament resolved to have critical stake holders like you to discuss elaborately on the causes for the high increase and the possible ways we can collectively navigate out to bring succor to our people.
“The Right Hon speaker in his wisdom did not only declare this event open but assured that this is not in anyway a whitch-hunt but an open discuss with a view to finding lasting solutions to our problem within the built environment. Permit me to emphasize on the importance of this public hearing and the need to de-emphasise the notion created by some Companies relevant to this Investigation under the guise that committees of Parliament has no Powers to invite Private outfits to appear before it. It is on record that there is no Order of the Courts presented restraining the Committee from exercising its functions under section 88(2)(b) of the 1999 Constitution as Amended.
“Our review of cement prices in other countries like Kenya, India and Zambia for 2021 alone shows that Nigeria has the highest price of cement using the official exchange rates for each Country. Nigeria’s price of cement doubles that of India at a difference of 69%, similarly the price is 29% higher than that in Kenya and 39% higher in Zambia. Hence the need for us to come together and find out why. In order to bring succor to our citizens while protecting investors alike”, the committee chairman said.
He said the concern of the House is for all legitimate businesses especially cement production Companies in Nigeria to thrive and deliver their objective and services to the people in such a manner that can foster development.
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