President Bola Tinubu has been urged by the Real Estate Developers Association of Nigeria (REDAN), Abuja, to call an urgent meeting with cement manufacturers in order to address the recent spike in cement prices and shield Nigerians from further economic hardship.
In a statement released on Wednesday, REDAN President Dr. Aliyu Oroji Wamakko voiced his worries about how the price increase would affect the real estate industry as well as the larger Nigerian economy, which is already dealing with serious difficulties.
He highlighted the possible consequences, including a rise in crime rates brought on by unemployment and greater poverty.
The cost of producing concrete on-site will rise dramatically, as explained by Dr. Wamakko, and ready-mix concrete prices will likewise rise.”Many job opportunities arise during construction, which lowers the nation’s poverty index.
But banditry, kidnapping, and armed robbery are the consequences of unemployment.
If left unchecked, he warned, the sharp increase in cement prices could worsen the country’s economic problems and impede the government’s “Renewed Hope” initiative, which aims to meet the population’s housing needs.
As the country struggles with a 28 million housing deficit, Dr. Wamakko emphasised the critical role that cement plays in the construction industry and its impact on the housing sector nationwide.
The president of REDAN further cited the unfulfilled commitment by BUA Group Chairman Abdulsamad Rabiu to lower cement prices to N3,500 per bag, as prices continue to stay unchanged.”
In January of this year, Abdulsamad Rabiu, the Chairman of BUA Group, announced that his company would drop the price of cement from over N5,500 per bag to N3,500. But the cost is still the same,” he bemoaned.
In order to make cement more accessible and affordable for Nigerians, Dr. Wamakko—who also holds the positions of Chairman and CEO of Jedo Investment Limited—called on the government to support increased competition in the sector.
He asserts that the maximum price that citizens should pay for a bag of cement is N3,500. He thinks the President should look into the current price of a 50 kg bag of cement, which is N7,500.
The Federal Government’s intention to build concrete roads has also prompted the Cement Producers Association of Nigeria to issue a warning that cement prices could rise to N9,000 per bag.
In order to stop additional price increases, Dr. Wamakko pleaded with the government to reevaluate this initiative.
Distributors are citing things like old stock and logistics costs as justifications for why retailers around the nation are keeping prices per bag between N5,500 and almost N8,000, according to Wamakko.
This situation necessitates quick action because any additional rise in cement prices could pose a direct threat to the nation’s housing programmes and overall economic stability.
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