The Nigerian Senate on Tuesday debated a motion on the need for liberalization of cement policy in Nigeria.
TheNewsGuru.com (TNG) reports the motion was moved by Senator Lola Ashiru and five other Senators.
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 the 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.
Following debate on the motion, the Senate hitherto called on the Federal Government to provide more industrial incentives and industrial protection such as offering concessionary loans and larger tax incentives for new entrants in order to boost production of cements, reduce price and encourage more valuable producers in Nigeria.