Senate on Tuesday asked 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.
Senate’s decision was sequel to the motion sponsored by Senator Oyelola Ashiru which was co-sponsored by five others.
Senator Ashiru while speaking on the motion said 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 dissatisfaction with 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.