Nigerians, particularly those with low and middle incomes, have raised concerns about the escalating cost of cement, expressing fears that the dream of owning homes in the country may become unattainable.
The Real Estate Developers Association of Nigeria (REDAN) has also emphasized that the persistent high prices of cement and other building materials could contribute to the worsening housing deficit in the nation.
In the span of just one month, from December 2023 to January 2024, the price of a 50kg bag of cement surged from an average of N5,000 to N6,000. A subsequent survey conducted by Vanguard between February 11 and 22, 2024, revealed a further spike in prices, reaching between N10,500 and N13,000 in various regions, including Lagos, Ogun, and other states, amid a backdrop of rising inflation.
Responding to the crisis, the Federal Government engaged manufacturers and stakeholders in discussions to address the issue.
The Minister of Works, David Umahi, acknowledged the challenges faced by manufacturers and emphasized the need to bridge the gap between ex-factory prices and market prices. Following the meeting, major cement producers such as Dangote and BUA agreed to reduce prices to a range of N7,000 to N8,000 per 50kg, with the government pledging to address manufacturers’ grievances related to issues like bad roads, exchange rates, and inflation.
However, concerns persist among citizens, building contractors, and cement sellers. The President of REDAN, Dr. Aliyu Wamako, expressed worry about the significant surge in cement prices, stating that it would be increasingly challenging for low and middle-income earners to afford housing with cement costing between N12,000 and N15,000 per 50kg bag.
Residents, contractors, and sellers alike have voiced their frustrations, with some citing the impact on ongoing construction projects. A building contractor, Peter Ekondu, reported having to halt work due to disputes arising from sudden price increases. Cement sellers, grappling with poor patronage and skyrocketing prices, have explained that factors such as the exorbitant cost of raw materials and transportation challenges are contributing to the surge in prices.
As citizens grapple with the economic implications, there is a growing call for collaboration between the government and local cement manufacturers to find lasting solutions.
The situation has raised concerns about the broader economic impact and the potential repercussions on the ability of Nigerians, especially those with modest incomes, to realize their homeownership aspirations……CONTINUE READING
