Consequent to the high increase in the price of cement in Nigeria, which has continued to result in substandard building constructions and non-completion of planned infrastructural works around the country, the Senate has urged the federal government to introduce liberal policies on the manufacturing sector in other to stimulate and encourage local investments in cement production in Nigeria.
The resolution was sequel to the consideration of a motion titled: “Need for liberalisation of cement policy in Nigeria”, sponsored by Senator Ashiru Oyelola Yisa and five other co-sponsors that include; Senators Muhammad Enagi Bima (Niger South); Adelere Adeyemi Oriolowo (Osun West); Samuel Egwu (Ebonyi North); Kabiru Gaya (Kano South) and Michael Nnachi (Ebonyi South).
In his lead debate, Senator Yisa identified cement as one of the few building materials in which Nigeria enjoys self-sufficiency.
He also noted that cement takes a large share of domestic expenditure and the price of each commodity, no doubt significantly impacts the government’s ability to provide much-needed infrastructural works required for the growth of our economy.
According to Senator Yisa, “Further cognizant that the recent increase in the price of cement (from N2, 600 to N3, 800) slowed down the amount of construction work being embarked upon, thus negatively affecting labour engagement and almost collapsed the procurement plan of the governments in 2020 Appropriation Act.
“Mindful that the Nigerian cement market is oligopolistic in nature with three players (Dangote Cement (60.6 percent); Lafarge Africa Plc (21.8 percent) and BUA Group (17.6 percent), largely dominating the scene, therefore, making it susceptible to price-fixing practices.
“I am convinced that if the status quo persists, the negative consequences of high prices on the economy will outweigh the benefits of producing cement locally,”- he posited.
The lawmaker who described as worrisome the significant rise in cement prices in the country noted that the low purchasing power of Nigerians may result in substandard building constructions and non-completion of planned infrastructural works.
He, therefore, expressed an urgent need for the federal government to encourage more local production of cement in other to satisfy the demands of Nigerians
In its resolution, the Senate called on the Federal Government to provide more industrial incentives and industrial protections, such as concessionary loans and huge tax incentives for new entrants in order to boost production of cement, reduce price and encourage more valuable producers in Nigeria.
