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Stakeholders Blame Cement Price Hike On Production Cut, Monopoly

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Stakeholders in the building industry have attributed the high cost of cement in Nigeria to forces of demand and supply caused by monopoly and low production levels of major producers of the commodity.
A survey conducted by newsmen in states in the South -West of Nigeria -Ogun, Oyo, Osun, Ondo, Ekiti and Kwara, showed that the cost of a bag of cement ranges from N3500 to N4000 depending on the brand and the area.
The high cost of cement, it was also discovered, had impacted on the construction industry with some people with building projects either temporarily suspending work for now or reducing the level of work.
Speaking on the issue, Mrs Funmilola Adeboje, a cement distributor in Ibadan, said cement companies have reduced the number of distributors to only a few who get the commodity directly from the source.
She said that the few distributors selected, now called major distributors, have monopolized the market and thus the hike in price of the commodity.
“Only a few distributors have access to cement directly from the producers and because of shortage in supply the force of demand has also made the price to increase.
“In time past, I booked directly from the company, but I was told I can no longer book to get the cement, that I should come and buy it when cement is available.
“We don’t know how much the companies release the products to the major distributors but we buy at varying prices; N3,500 to N3,600.
“We only gain N100 on each bag and sometimes you can get as low as N20 on each bag and this was not how it used to be before now,” she said.
A sales representative of one of the major cement companies, who pleaded anonymity, said the issues affecting sales of cement in Nigeria are many.
He explained that production plants of two major cement producers had not been working at full capacity since the middle of 2020, “and the companies have just been patching things up.
“The plants when repaired can work at full capacity for a while and then it will break down again.
“Due to shortage of supplies, the market force took over in dictating the price because of high demand over supply and some other factors such as limited access given to distributors.
“The selected few also have to tip some people to get the commodity because of shortage in production and that increases the overall cost of selling cement in Nigeria.
“Lafarge has its own issues and also Dangote with producing optimally. So, the major distributors are maximizing the situation to their advantage.
“The cement companies would care less about the price as long as their commodities are being sold. Government might need to regulate the issue to rid it of corruption,” he said.
The source said one bag of cement is sold at from Bodija market for between N3,700 to N3800, but from the distributor it goes for N3,400 to N3,500.
According to him, the companies most times are discreet or not forthright with the actual price of the commodity, but a bag was sold for between N2,500 and N2800 in time past.
“A distributor that gets maybe 20 truck loads of cement in time past, but due to the situation on ground now gets two to five trucks and so they want to make the profit of 20 trucks from a few trucks,” he said.
A building contractor, Mr Rotimi Omoniyi, said the increase may be due to foreign exchange or production inputs, which has affected the selling price.
“I don’t think there is anything we do in Nigeria that has no connection with foreign exchange and that increases the cost of production.
“The masses are at the receiving end of high cost of production of goods in Nigeria, “ he said.
Cement sellers in Osun have attributed the hike in the prices of the product to scarcity and activities of middle men.
They said due to the unavailability of the product since 2020, the prices had been fluctuating.
In Osun, a cement distributor in Osogbo, Mr Ibrahim Awolola, said the increase in the price of cement in the market was due to its unavailability because of a sharp drop in production.
Awolola explained further that manufacturers of cement were also complaining of unavailability of raw materials for production, which in turn affected its availability
He said that the situation was simply in line with the law of supply and demand, “the more scarce and unavailable a commodity is, the more expensive it will become.’’
Awolola also said that cost of logistics and transportation the hike in the price of cement in the market.
The cement distributor said a bag of Dangote cement is sold between N3,600 and N3,700, depending on the location
He, however, assured that whenever there is improvemen in the production of cement and supply exceeded demand, the price would definitely come down.
Speaking in the same vein, another cement retailer in Osogbo, Mr Adewale Adeyemo, said that the scarcity of cement was the major factor that forced the price up.
Adeyemo said that information also made available to him revealed that haulage companies which provide trucks for the supply of cement have withdrawn their services, while the few ones working are the ones dictating the price of transportation.

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China Alerts Rivers, A’Ibom, Abia Govs To Economic Triangle

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The Mayor of Housing, My-ACE China, has alerted the Governor of Rivers, Akwa Ibom, and Abia states to what he calls an emerging ‘Economic Triangle’ within their states.

Mr China, a real estate success strategist who has won numerous local and international awards, has thus drawn the attention of the governors of the concerned states to the emerging development and has urged them to intentionally accelerate the emergence of the economic triangle.

Speaking to newsmen in Uyo, Akwa Ibom State capital at the conclusion of his business trip to the state, Mr China, who is the managing director of the Housing and Construction Mayor Limited, said the envisaged economic corridor would compete favourably with the Lagos economic hub or even better.

He said: “Talking about ‘Economic Triangle’, the only place that can wrest economic power from Lagos is Akwa Ibom, Abia, and Rivers states axis or corridor. This corridor contains more than Lagos has, if they can be interconnected with smooth roads, ports, and if their blue potentials are unlocked. They will not only wrest power from Lagos but would be more lucrative.”

The investor who is behind the emerging Alesa Highlands Green Smart City in Eleme, near Port Harcourt, said the new ‘Economic Triangle’ has a bigger potential due to massive land assets with the corridor plus blue economy and the existing hydrocarbon industry.

Explaining, Mayor of Housing said Aba (Abia State) provides the biggest fabrication capacity in West Africa to supply goods to the Gulf of Guinea; Port Harcourt provides access to the Gulf of Guinea for off-taking Aba products, and the Uyo provides deep sea port at Ibaka and international airport facilities as well as forest reserves for massive agro-economy.

He said with sea ports in Rivers State and deep seaport in Akwa Ibom, and international airports in Rivers and Akwa Ibom, Aba can focus on adequate power supply and fabrication boom to supply a new booming market around the economic triangle.

By doing this, he said, jobs would spill out in huge quantities and more manufacturers would be drawn from all over Africa to boost the fast coming African Continental Free Trade Agreement (AfCFTA). He said Nigeria would thus have two major trade nodes in West Africa; Lagos and the PH/UYO/Aba triangle.

 

He said goods going to or coming from Chad, Niger, and the rest of Central Africa can head to the Lagos ports or to the Ibaka/PH ports zone in the new economic triangle.

He said with power supply made stable, good roads, excellent security system, and ease of doing business enthroned in the zone, the South-South and South East would become the biggest economic nerve in the near future.

Mayor of Housing called on governors of the three states to be intentional about the new corridor, put away political differences (if any), and create this corridor by agreeing on projects each state would execute with a short period of time so the states would be linked by good roads, communication, security, trade laws, concessions to investors, etc.

He remarked that northerners were already heading to the Onne Port in Rivers State to export goods, saying creating a commission to oversee the development of the ‘Economic Triangle’ would fast-track its emergence.

He observed that people of the three states are peaceful and usually preoccupied with zeal for economic prosperity, saying that if they are linked to such huge opportunities staring at them in the emerging economic triangle, they would totally shun violence and focus on prosperity.

Mr China insisted that the emerging economic triangle would form a big node not only into the Gulf of Guinea economic zone but into Africa because AfCFTA is about production, certification, market availability, and easy transport nodes by sea and air. He said the new economic triangle boasts of all the factors.

“They can only realise this by working together, through collaboration. One state cannot do it but a triangle of the three will create it through seamless interconnection, ports, industrial park, etc. The people will be the richest and internally generated revenue (IGR) will be the biggest in the country,” he said.

 

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Tinubu Nominates Ex-INEC Chair Yakubu, Fani-Kayode, Omokri, 29 Others As Ambassadors

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President Bola Tinubu has sent the names of 32 ambassadorial nominees to the Senate for confirmation, days after he sent the first batch of three names.

Among them are the immediate past chairman of the Independent National Electoral Commission, Mahmud Yakubu, an aide to former President Goodluck Jonathan, Reno Omokri (Delta), and former Enugu State Governor, Ifeanyi Ugwuanyi, among others.

“In two separate letters to the Senate President, Godswill Akpabio, President Tinubu asked the Senate to consider and confirm expeditiously 15 nominees as career ambassadors and 17 nominees as non-career ambassadors,” read a statement on Saturday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga.

In the statement titled, ‘Tinubu nominates 32 additional ambassadors,’ Onanuga noted, “There are four women on the career ambassadors’ list and six women on the non-career ambassadors’ list.”

“Among the non-career ambassador designates are Ogbonnaya Kalu from Abia, a former presidential aide, Reno Omokri (Delta), former chairman of the Independent National Electoral Commission (INEC), Mahmud Yakubu, former Ekiti first lady, Erelu Adebayo, and former Enugu governor, Ifeanyi Ugwuanyi.

“Others are Tasiu Musa Maigari, the former speaker of the Katsina House of Assembly, Yakubu N. Gambo, a former Commissioner in Plateau State and former Deputy Executive Secretary of the Universal Basic Education Commission.

“Professor Nora Ladi Daduut, a former senator from Plateau; Otunba Femi Pedro, a former Deputy Governor of Lagos State; Femi Fani-Kayode, a former aviation minister from Osun State; and Nkechi Ufochukwu from Anambra State are on the nomination list,” the statement read.

Also on the list are former First Lady of Oyo, Fatima Florence Ajimobi, former Lagos Commissioner, Lola Akande, former Adamawa Senator, Grace Bent, former governor of Abia, Victor Okezie Ikpeazu, Senator Jimoh Ibrahim, businessman, lawyer and Senator from Ondo State, and the former ambassador of Nigeria to the Holy See, Ambassador Paul Oga Adikwu from Benue State.

Among the nominees for career ambassador and high commissioner-designates are: Enebechi Monica Okwuchukwu (Abia), Yakubu Nyaku Danladi (Taraba), Miamuna Ibrahim Besto (Adamawa), Musa Musa Abubakar (Kebbi), Syndoph Paebi Endoni (Bayelsa), Chima Geoffrey Lioma David (Ebonyi) and Mopelola Adeola-Ibrahim (Ogun).

The other nominees are Abimbola Samuel Reuben (Ondo), Yvonne Ehinosen Odumah(Edo), Hamza Mohammed Salau (Niger), Ambassador Shehu Barde (Katsina), Ambassador Ahmed Mohammed Monguno (Borno), Ambassador Muhammad Saidu Dahiru (Kaduna), Ambassador Olatunji Ahmed Sulu Gambari (Kwara) and Ambassador Wahab Adekola Akande (Osun).

“The new nominees are expected to be posted to countries with which Nigeria maintains excellent and strategic bilateral relations, such as China, India, South Korea, Canada, Mexico, the United Arab Emirates, Qatar, South Africa, Kenya, and to Permanent Missions such as the United Nations, UNESCO, and the African Union.

“All the nominees will know their diplomatic assignments after their confirmation by the Senate,” it read.

Last week, Tinubu sent three ambassadorial nominees for screening and confirmation.

The nominees were Ambassador Ayodele Oke (Oyo), Ambassador Amin Mohammed Dalhatu (Jigawa), and Retired Colonel Lateef Kayode Are (Ogun).

All three are in the pot for posting to the UK, USA, or France after their confirmation.

“More nominees for ambassadorial positions will be announced soon,” Onanuga revealed.

 

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Investment In Education Remains Top Priority For Gov Fubara – SSG

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The Secretary to Rivers State Government, Dr. Benibo Anabraba, has reiterated that the administration of Governor Siminalayi Fubara remains committed to improving access to quality education at all levels.

Dr. Anabraba gave the assurance while receiving the Deputy Registrar/Zonal Coordinator of the West African Examinations Council (WAEC), Mr Ayanfemi Adeniran-Amusan in Port Harcourt during a courtesy visit.

He emphasised that Governor Fubara remains resolute in sustaining investment in the education sector to improve the quality of teaching and learning.

According to him, “We appreciate the work you are doing and know that our students are amongst the highest in ranking.

“His Excellency, Sir Siminalayi Fubara, takes education very seriously. He is sponsoring the free registration of students for the West African Senior School Certificate Examination (WASSCE) in Government Schools.

“Also, Governor Fubara has approved the establishment of Computer-Based Test (CBT) Centres across the State’s three senatorial districts and the 23 LGAs. The project is intended to improve access to digital learning and examination facilities for students so that our children are at breast with digital literacy, a prerequisite for today’s students.

“We are currently working assiduously to get those centres, both mega and mini, across the three senatorial districts and the 23 local government ready in order to meet up with your deadline,” he said.

The SSG also conveyed the assurances of the Governor to WAEC on Government’s willingness in providing land for its Zonal Office.

Earlier, the Deputy Registrar/Zonal Coordinator of the West African Examination Council, Mr Ayanfemi Adeniran-Amusan, promised to collaborate with the State Government in matters concerning education development.

In another development, the Secretary to State Government, Dr Benibo Anabraba, also met with officials of the National Agency for the Prohibition of Trafficking in Persons, NAPTIP, led by the Assistant Director of Intelligence, Rivers State Command, Barr. Ikediashi Nwamaka.

The SSG while appreciating the Agency for its effort in the protection of vulnerable persons, also raised Government’s concern on the activities of orphanages and care homes in unwholesome practices such as child trafficking, abuse of underaged girls also known as baby-factory, and the lack of regulations on surrogacy.

He however assured that the Rivers State Government has already put plans in place towards legislation to regulate these acts against vulnerable persons, particularly women and children.

 

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