Senate to look into price increases for building supplies and cement

On Wednesday, the Senate decided to look into the country’s rising prices for cement and other building supplies, and it also urged the federal government to permit the commodity’s importation as a temporary fix.

As a result, the Red Chamber gave its Committee on Industries, led by Senator Francis Fadahunsi (APC, Osun East), instructions to look into the operations of the nation’s cement manufacturing industries in order to determine whether monopolistic or market manipulation practices are to blame for the price increase.

It also required the committee to make sure that businesses that make cement rigorously follow fair market principles and refrain from setting prices that are anti-competitive.

The Senate Deputy Leader, Senator Oyelola Ashiru (APC, Kwara South), presented a motion during plenary headed “Need to urgently address the increase in cement prices and other building materials in Nigeria.” These resolutions came after the motion.

Ashiru, who entered under Order 42 on Personal Explanation, stated that economic growth is largely dependent on cement and other building materials, and that the construction sector is essential to the development of infrastructure.

He voiced concern that numerous national development initiatives have been badly impeded by the recent trend of the product’s price rising practically every day.

Important building supplies, in particular cement and iron rods, are currently being sold at exorbitant prices, according to the legislator. The price of a bag of cement increased from N5,500 in January 2024 to around N14,000, while the price of an iron rod increased from N8,500 to N17,000.

He voiced concern that housing, “our own constituency projects across the country,” and vital infrastructure are suffering as a result of the abrupt and sharp price hike.

Ashiru stated that the abrupt increase in costs is odd and confusing because cement raw ingredients are sourced entirely domestically, not from imports.

“Aware that reasonably priced cement and other building materials are essential to national development, promptly resolving this issue will benefit the construction sector by guaranteeing the advancement of constituency projects, bolstering national security through employment and stability, and enhancing the standard of living for Nigerians as a whole,” he stated.