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The Chief Executive Officer (CEO) of the Centre For The Promotion Of Private Enterprise (CPPE), Muda Yusuf has stated that the manufacturers of cement are not responsible for the exorbitant prices of the commodity in the market.
Yusuf claimed that the current price of a bag of cement by the major players is less than N7,000 per bag. He stated this a statement made available to Legit. Reacting to the invitation by the House of Representatives to cement manufacturers, including Dangote Cement and BUA Cement, Yusuf insisted that they cannot be blamed for the exorbitant price situation. He asserted that those within the cement distribution chain are responsible for the exorbitant prices. He added: “The high cement prices is a regulatory issue that could be addressed within the framework of the Federal Protection and Competition Act of 2018. “The Federal Competition and Consumer Protection Commission [FCCPC] has a responsibility to ensure compliance with the Act to ensure the protection of the interests of the consumers and the public. If there are proven lapses in this respect, the FCCPC should be held to account. “The current ex-factory price of cement by the major players is less than N7,000 per bag. It follows that pricing issues and the culprits could also be within the cement distribution chain over which the manufacturers have limited control.” Speaking further, Yusuf stressed that lawmakers’ invitation and choice of words during a debate at the plenary portrayed cement manufacturers in a bad light. “We appeal to the national assembly to always extend due courtesies to investors in the economy in the course of their legislative duties. They deserve to be addressed with respect, courtesy, civility and fairness. “The logistics cost of cement distribution is humongous, given the escalating cost of diesel and the state of the roads. “Exchange rate depreciation is taking a huge toll on the cost of imported components of production inputs, including spare parts and machineries. Cost of fund is mounting as the CBN continues its aggressive monetary policy tightening. Latest headline inflation for February was 31.7%. “All these are variables which are not within the control of the manufacturers and which have profound impact on production and operating cost,” he added.
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