The House of Representatives’ joint committee investigating the arbitrary rise in cement prices has requested major producers, including Dangote Cement Company and Lafarge Africa Plc, to submit detailed documents on their production costs. The committee plans to visit production plants to verify these costs and determine a fair market price for cement.

At a public hearing in Abuja, committee chairman Jonathan Gaza (APC-Nasarawa) emphasized the need for transparency from the companies. He demanded comprehensive data on production costs, including the average daily consumption of key raw materials like coal, gas, gypsum, limestone, clay, and laterite, from 2020 to the present.

The committee is also seeking information on imported and local components used in cement production, their prices in both naira and dollars, and a summary of monthly cement production and prices from 2019 to date. Additionally, the companies must provide audited financial accounts, customs duties paid, and details of tax waivers and incentives received.

Dabo Ismail (APC-Bauchi), a committee member, highlighted Dangote Cement’s substantial profits despite sourcing most raw materials locally. He noted the company’s profits: N524 billion in 2022, N553 billion in 2023, and N166.4 billion so far in 2024. Ismail questioned the justification for rising cement prices while producers continue to profit significantly.

In response, Arvind Pathack, Group Managing Director of Dangote Cement, cited the high cost of production, with 95% of costs being either imported or linked to foreign exchange. He reported significant price increases for major inputs, such as gas, AGO, gypsum, imported coal, spare parts, new trucks, and petrol, ranging from 100% to 333%. Pathack also mentioned challenges like the poor state of roads, forex shortages, and high loan interest rates.

Pathack explained that between May 2023 and June 2024, the naira devalued by over 220%, exacerbating costs. He also noted substantial increases in the prices of building materials like reinforcement, granite, and aluminum windows. Despite these challenges, Pathack claimed that cement prices in Nigeria, averaging N7,200 per bag, are among the lowest in Africa when converted to dollars.

The committee urged the companies to review their policies and operations to reduce cement prices. Chairman Jonathan Gaza criticized the Federal Competition and Consumer Protection Commission (FCCPC) for failing to protect consumers from middlemen who sell cement at exorbitant prices, sometimes as high as N14,000 per bag.

“We are hopeful that this engagement will lead to a reduction in the price of cement,” Gaza stated, blaming the FCCPC’s inaction for the current price surge.