By Florence Onuegbu
Lagos, July 6, 2021 The Iron Rod Distributors Association of Nigeria (IRDAN) has decried the skyrocketing price of steel products in the country in the last few months.
IRDAN’s National President, Chief Gbenga Awoyale, said in a statement on Tuesday in Lagos, that if the artificial inflationary trend was not checked, it might cripple Nigeria’s economy.
”We are baffled by the undue inflation of iron rods in the last few months and its adverse effects on our businesses and the consequential effect on the national economy.
”It is on this reason we engaged our sister association, the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN), being major source of raw materials for manufacturers,” he said.
Awoyale said that IRDAN’s interactions with the President of NASWDEN, Mr John Egaji Obeh, showed that they had not increased per ton price of iron scrap to the manufacturers.
He noted that it was, however, disturbing that manufacturers increased per ton price of iron rods by about 150 per cent.
According to him, this is even when the cost of production is just about 40 per cent of the initial cost of sales, before the artificial inflation.
”As at June 2021, a ton of iron rod was N300,000 but arbitrarily increased to N450,000 as we speak. Now, majority of contractors have abandoned projects sites as prices of iron rods become unbearable, to avoid running at loss.
”How will you explain quoting a job for N300,000 per ton of iron and you end up spending N450,000?,” he said.
Awoyale called on the Federal Government and the National Assembly to rise to the occasion and checkmate the undue inflationary trend, to avoid the consequential economic implications.
He said that the price hike was the handy work of some cabalistic expatriates bent on milking Nigeria dry.
Association laments over skyrocketing price of steel products In Nigeria
By Florence Onuegbu