VANGUARD
Nigerians, especially the low and middle-income earners, have cried out over the present high cost of cement saying they will no longer be able to own their houses in the country. This is just as the Real Estate Developers Association of Nigeria, REDAN, declared that unless a sustainable solution was found to the problem of high cost of cement and other building materials, Nigeria’s housing deficit will continue to rise.
Between December, 2023 and January, 2024 the price of a 50kg bag of cement sold for an average of N5, 000 and N6,000 in the open market. However, in a survey carried out by Vanguard within one week between February 11 and 22, 2024, the price of a 50kg bag of cement rose to between N10,500 and N13,000 in many parts of Lagos, Ogun and other states across Nigeria amidst rising inflation.
This prompted the Federal Government’s decision to meet with manufacturers and other stakeholders in an attempt to halt the slide. The Minister of Works, David Umahi was quoted as saying at the meeting that, “it is common knowledge that the manufacturers have their challenges, which we shall look into, but from our findings, the disparity between ex-factory price and the market price is wide. “We therefore need to look into the situation and other issues with a view to finding a common front.” After the meeting, major cement manufacturers such as Dangote and BUA agreed to bring the price to between N7,000 and N8,000 per 50kg. It was also agreed that government on its part would look into some of the grievances of the manufacturers. They had complained about bad roads, exchange rate, rising inflation among others.
The President of the Real Estate Developers Association of Nigeria (REDAN), Dr. Aliyu Wamako, who spoke to Vanguard, in a telephone interview, in Abuja, on Thursday, was particularly worried, like most of his colleagues in the building industry, about the astronomical rise in the cost of cement, one of the basic materials used in the construction industry.
Dr Wamako explained that low and middle income earners will find it difficult, if not impossible, to build or own houses with the average cost of cement hovering around N12,000-N15,000 per 50kg bag.
He said, “The truth is that low and middle income earners will find it increasingly difficult to afford housing which is a basic need, not to even talk about those who don’t have sustainable or reliable income. “We understand government is doing the best it can on this issue but more need to be done.
“In fact, we heard about the threat by government to open the borders to allow import of finished cement products if that will help. “We think both government and indigenous manufacturers of cement can find a lasting solution to this problem if they decide to work together.”
Residents, building contractors, sellers lament
A resident, Samuel Abayomi, who is currently building his house, lamented over the current price of cement, saying that the federal government wants to make it impossible for middle income earners to build their own houses. He said, “I had planned to finish my house latest by June according to my own budget. Although the price of cement had initially gone up this month, I was still able to adjust, but this current price is sickening and can kill someone before his time.
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