Reps Demand Justification For Cement Price Hike From Dangote, Lafarge

Reps investigating cement price hikes has requested major producers to provide production cost documents and data to justify current prices.

EKO HOT BLOG reports that the joint committee of the House of Representatives investigating the arbitrary rise in cement prices has asked major producers to submit documents on production costs to justify the market prices.

The committee resolved to visit the production plants of these companies after reviewing their financial records to determine a fair price of cement for all Nigerians.

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Chairman of the joint committee, Jonathan Gaza (APC-Nasarawa), made the demand on Friday at a public hearing, questioning representatives from Dangote Cement Company and Lafarge Africa Plc in Abuja.

Gaza stated that the committee is interested in the cost of production from 2020 to date to justify the current price of cement, which is over N10,000 in most parts of the country.

He requested that the companies provide data on their average daily consumption of coal, gas, gypsum, limestone, clay, and laterite, as well as their average daily production of cement from 2020 to date.

Additionally, Gaza asked for details of all imported components for cement production and their prices from 2020 to date, as well as information on local components and their prices in naira and dollars if applicable within the review period.

He said 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 ladan and duties paid to customs within the period under review.

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Gaza also said that the companies should provide details of tax waivers and other incentives enjoyed plus gas and explosives contract details.

Dabo Ismail (APC-Bauchi state) a member of the committee said that Dangote Cement Company had continued to make increasing profits in the country despite being able to source most of its raw materials locally.

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