Cement price: Senate seeks concessions, incentives to attract new investors | Dailytrust

Cement price: Senate seeks concessions, incentives to attract new investors

Bags of Cement
Bags of Cement

The Senate, on Tuesday, urged the Federal Government to offer concessionary loans and larger tax incentives for new investors to boost cement production, reduce price and encourage more valuable producers in Nigeria.

This followed a motion by Senator Oyelola Ashiru  (APC, Kwara) and co-sponsored by five others.

Senator Ashiru noted that the Nigerian cement market is oligopolistic in nature with three players.

Dangote Cement has 60.6%, Lafarge Africa 21.8% and BUA Group 17.6%.

All three dominate the scene, making it susceptible to price-fixing practices.

Ashiru said if the status quo persisted, the negative consequences of high prices on the economy would outweigh the benefits of producing cement locally.

According to him, the recent increase in price of cement, from N2,600 to N3,800, slowed down the amount of construction work being embarked upon thus negatively affecting labour engagement.

He expressed worry 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.

Dear Reader,
Every day, we work hard to provide readers such as you with the most accurate, up-to-date, and comprehensive information. Quality journalism costs money. Today, we're asking that you support us to do more. Your support means that Daily Trust can keep offering journalism to everyone in the world. Sign up for as little as N1,000 to become a member. Learn more about our membership here

Bank transfers can be made to:
Zenith Bank
Media Trust Ltd

Please send details of your bank transfer to the email or Whatsapp number below so that we can contact you.

If you have any questions, please let us know.

Email: membership@dailytrust.com
Whatsapp: +234 806 990 3410