The Joint Committee of the House of Representatives investigating the rising cement prices has requested major industry producers to provide detailed documentation of their production costs to justify the current market prices.
The committee, led by Chairman Rep. Jonathan Gaza (APC-Nasarawa), made this demand during a public hearing on Friday, where representatives from Dangote Cement Company and Lafarge Africa PLC were questioned in Abuja. The committee plans to visit the companies’ production plants after reviewing their records to determine a fair cement price for Nigerians.
Gaza highlighted the committee’s interest in production costs from 2020 to date, noting the current cement price exceeds N10,000 in many areas. The companies were asked to provide average daily consumption data for coal, gas, gypsum, limestone, clay, laterite, and cement production figures from 2020 onwards. Additionally, they must detail both imported and local components used in cement production and their respective costs.
The committee also requested summaries of monthly prices and cement quantities produced since 2019, along with audited accounts, bills of lading, customs duties, tax waivers, and other incentives, as well as gas and explosives contract details.
Rep. Dabo Ismail (APC-Bauchi) criticized Dangote Cement Company for its rising profits despite sourcing most raw materials locally. He cited profits of N524 billion in 2022, N553 billion in 2023, and N166.4 billion in 2024, questioning why cement prices keep increasing to the detriment of Nigerians.
Arvind Pathack, Group Managing Director of Dangote Cement, explained that 95% of production costs are either imported or linked to foreign exchange. He noted significant price increases in key input materials, logistics challenges, forex shortages, and high interest rates on loans as contributing factors to the price hike. Pathack claimed that cement sold at an average of N7,200 per bag, with prices over N10,000 being due to retailer markups beyond the company’s control.
The committee urged the companies to review their policies to lower cement prices in Nigeria. Chairman Gaza expressed hope that the engagement would lead to a price reduction and criticized the Federal Competition Consumer Protection Commission (FCCPC) for failing to protect consumers from excessive pricing by middlemen.
“We are extremely hopeful that this engagement will lead to a reduction in the price of cement. FCCPC has slept on their functions so far, their inactivity and non-responsiveness to price is what has put Nigeria where we are today,” Gaza said.
