oz4real83:
Yes

Fineman87:
Sometimes I wonder how Nigeria can develop without effective regulation and monitoring of critical and needed raw materials.

In Advanced countries where structures are built with steel; the steel industry is highly regulated. One example is Britain where the steel industry has a legalized regulation. Such effective regulation guarantees price stability and material availability for physical and infrastructural development. That is why first world countries are infrastructurally developed.

But here in Africa especially Nigeria, the extraction, sale and availability of critical raw materials is left unregulated. Nigeria is rich in Limestone yet cement prices are skyrocketing because of greedy retailers.

The FG, National Assembly and the FCCPC needs to harshly regulate the building materials sector. When Jonathan was president, cement sold at N1,500 per bag. Now it is N4200. That is just too high for 1 bag. The same applies to reinforcement rods, granite, gravel, steel, etc.

These increase in prices affects roads and bridges construction, making govt pay more for contracts. Also houses, school structures, hospitality structures, industries, rail track foundations, and every infrastructural project suffers higher cost.

I call on the FG to urgently look into the high prices of building materials. The entire supply chain for each material should be investigated asap and thorough sanctions applied to deter exploitation by greedy retailers.

Please this is an urgent call from well meaning Nigerians. I know few building projects that have stalled because of greedy retailers. One is a magnificent hotel in a city. Then how do we develop as a nation when people can't build and when govt pays more to build roads and bridges.

Please this is an urgent call to govt to investigate, sanction harshly and regulate the building materials supply chain from production to utilization. As is done in developed countries.
Please...

donbachi:
In dis buhari's government...only the Debt Management Office (DMO),is working.

nabiz:
If they can't regulate it then let them allow free market to regulate it so that importer can import to compete with the local made. The day the allow the importation of cement in Nigeria, that day you will know the actual cost of cement. That day you will know how much dangote is making from the poor masses.

Fineman87:
I need more opinions please

Fineman87:


Am hoping the act fast on this...

Fineman87:
Lol

Fineman87:
I need more opinions please

nabiz:
If they can't regulate it then let them allow free market to regulate it so that importer can import to compete with the local made. The day the allow the importation of cement in Nigeria, that day you will know the actual cost of cement. That day you will know how much dangote is making from the poor masses.

donbachi:
In dis buhari's government...only the Debt Management Office (DMO),is working.

badaru911:

.... "Imagine that your friend is into production of pen in which you also have a huge amount of money in it. Miraculously,you gat an employment with the government and you are the one charge of procurement of pen....... Where will you procure your pen from?... No where else but your friend company which you are also having a huge share in it... So buying pen from your friend company will increase his revenue, which will also increase your own as well....One day, the government called upon you to seek your advice on what goods to ban its importation into the country..... The first thing you will mention is "pen".. And if government banned it, you and your friend are in big money.... You will dictate the price of the pen anyhow coz your friend company is now a monopoly and people don't have choice but to buy it. And the you will continue buying pens from your company irrespective of the price so long it is not your money but government... "
This thing is illegal.. A government official must not favor or deal with any companies that he is having interest in....
Nothing can be done to the price of cement, it will surely be going up because majority of Nigerian politicians (Ex president, president and vice,governors and vice, senators and so on) are having huge shares in those companies. And they will surely be doing things that will benefit the companies because of their interest in it. As the companies are getting stronger and their revenues are increasing, so also their own wealth..

badaru911:

.... "Imagine that your friend is into production of pen in which you also have a huge amount of money in it. Miraculously,you gat an employment with the government and you are the one charge of procurement of pen....... Where will you procure your pen from?... No where else but your friend company which you are also having a huge share in it... So buying pen from your friend company will increase his revenue, which will also increase your own as well....One day, the government called upon you to seek your advice on what goods to ban its importation into the country..... The first thing you will mention is "pen".. And if government banned it, you and your friend are in big money.... You will dictate the price of the pen anyhow coz your friend company is now a monopoly and people don't have choice but to buy it. And the you will continue buying pens from your company irrespective of the price so long it is not your money but government... "
This thing is illegal.. A government official must not favor or deal with any companies that he is having interest in....
Nothing can be done to the price of cement, it will surely be going up because majority of Nigerian politicians (Ex president, president and vice,governors and vice, senators and so on) are having huge shares in those companies. And they will surely be doing things that will benefit the companies because of their interest in it. As the companies are getting stronger and their revenues are increasing, so also their own wealth..

Blue3k:


If government intervention caused the issue then reducing it the solution. They should simply allow cement imports as you suggested. There's political pressure against it even from the masses who vote in protectionist politicans.

Fineman87:
I need more opinions please

Fineman87:

Kindly share more info on this please.

Blue3k:



I really dont think it's really necessary to impose this price regulations when they could simply allow more imports.

1. Consumer Surplus is reduced because tariffs , import bans and other trade restrictions artificially raise the praise of goods.
2. Producer Surplus is increased due to tarriffs and other trade restrictions.
3. These restrictions do hard jobs in other sectors to favor cement manufacturers. The most obvious example would be building developers.

oz4real83:
Don't compare bad with bad, the only difference between Jonathan's govt from Buhari's govt is that Buhari took evil to another level. There was a time a bag of cement was sold for N3,600 under Jonathan until Jonathan had pity, unlike Buhari, and ordered them to crash the price to about N2000. The Nigerian people deserve the kind of govt we have. An average Nigerian revels in greed. An average bus driver increases his fees when people are much and under emergency even when his costs remain the same. Regulation alone cannot change things, those that are assigned to implement the regulations must also do it without personal interest and greed..

Fineman87:


Yeah, the investigation of the entire supply chain would reveal this and action would be taken.

I wrote my post to have indirect action. Better than saying openly that imports should be allowed. But the investigation would discover the problem.

nabiz:
what annoy me most is that most if not all materials use is cement production are local materials(local content) why will there be increase in the price of cement. Our media are useless. No one have ever invited dangote or probe the company to know the reason.

Fineman87:
More opinions please... this is a serious matter, not shit topics that nairalanders like.