Senate Moves To Cut Cement Prices

HomeNEWS

Senate Moves To Cut Cement Prices

  A move to cut the skyrocketing costs of cement began yesterday at the National Assembly. The Senate urged the Federal Government to introduc

Insecurity: Senator Smart Adeyemi Weeps On Senate Floor
Police Funding: Senate Approves ₦1.3 Billion For Teargas, ₦10 Billion For Others
TSA: Senate Probes Revenue-Generating Agencies, Summons Malami, Emefiele
I’ve Never Sold A Single Asset Seized By EFCC – Bawa Tells Senate
Senate Mandates FERMA To Fix Lagos-Ota Expressway

 

A move to cut the skyrocketing costs of cement began yesterday at the National Assembly. The Senate urged the Federal Government to introduce liberal policies to stimulate more investment in the manufacturing of the product.

The upper chamber said such policies should include the provision of industrial and larger tax incentives to encourage local investments in cement production in Nigeria.

The resolution was sequel to the consideration of a motion titled: “Need for liberalization of cement policy in Nigeria”, sponsored by Senator Ashiru Oyelola Yisa and five others.

The co-sponsors of the motion are 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.

READ  Police Funding: Senate Approves ₦1.3 Billion For Teargas, ₦10 Billion For Others

Yisa said: “As of 2018, the installed capacity of cement producers was about 47.8 million metric tonnes (MMT) which is far above the estimated (2018) consumption of about 20.7MMT.

“Yet, the prices of cement in Nigeria- (N380) – is about 240 percent higher than the global average.

“Cognizant that cement takes a large share of domestic expenditure and the price of each commodity significantly impacts the government’s ability to provide much-needed infrastructural works required for the growth of our economy.

“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 labor engagement and almost collapsed the procurement plan of the governments in 2020 Appropriation Act.

READ  Why I Visited President Buhari – Tinubu

“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.

“We should be worried that the significant rise in cement prices in the country and the low purchasing power of Nigerians may result in substandard building constructions and non-completion of planned infrastructural works.

“It’s strongly believed that there is an urgent need to encourage more local production of cement to satisfy the demands of Nigeria with a steady growth rate of approximately three percent per annum; a housing deficit of 30 million units and less engagement of over 10.5 million workforces of the building and construction industry.

READ  Fatgbems Fuel Station In Abeokuta Dispenses Water To Motorists Instead Of Petrol

“It’s further strongly believed that unfavorable government policies such as the imposition of multiple taxes, erratic power supply, a government ban on importation in violation of ECOWAS Trade Liberalisation Scheme (ETLS) and subsequent lifting of importation in favor of few producers have negative implications on the growth of our infrastructures.”

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 to boost production of types of cement, reduce price and encourage more valuable producers in Nigeria

Source:- The Nation

 

COMMENTS

WORDPRESS: 0
DISQUS: