Cement price hike: CPPE faults Reps’ comment on manufacturers, says action hurting investors

The Centre for the Promotion of Private Enterprise, CPPE, says recent comments of House of Representatives members against cement manufacturers over price hikes are hurting investment in the sector.

Director of CPPE, Dr Muda Yusuf, disclosed this in a statement on Sunday.

Recall the Green Chamber on Wednesday in a motion by Gaza Gbefwi and Ademorin Kuye titled, ‘Arbitrary Increase in the Price of Cement by Manufacturers of Cement in Nigeria’, had blamed cement producers for a 50 per cent price increase.

The House later resolved to summon major cement manufacturers in the country.

However, CPPE described the move as unfair to investors and counterproductive.

CPPE noted that the Rep members’ comments are inciting the public against the cement manufacturers and putting their huge investments at risk.

The economic think tank group appealed to lawmakers to be moderate with their language to avoid adverse consequences for investors in the economy.

“The Centre for the Promotion of Private Enterprise, CPPE, notes with concern the recent remarks on the floor of the House of Representatives on cement price, which portrayed cement manufacturers in a very bad light. Members alleged that the manufacturers were exploitative as they arbitrarily fixed cement prices. Some members even described the manufacturers as unpatriotic. These were narratives on the floor of the House, which we consider to be unfair to investors in the cement sector, especially when the members of the House have not heard the perspectives of the cement manufacturers.

“Most of the remarks at the session were capable of inciting the public against the cement manufacturers and putting their huge investments at risk. It is a dangerous thing to do, given the huge stake they have in the Nigerian economy and their enormous contributions to the economy.

“We plead with the leadership of the House to ensure moderation in the use of language to avoid adverse consequences for investors in the economy going forward”, CPPE stated.