Following the agreement reached between the Federal Government and cement manufacturers to reduce cement prices to between N7,000 and N8,000, developers in the building industry have expressed dissatisfaction, arguing that the reduction is inadequate and detrimental to the economy.
President of the Real Estate Developers Association of Nigeria, Dr. Aliyu Wamakko, voiced concerns over the economic implications, stating that cement prices above N5,000 would hinder progress in addressing the country’s housing deficit, currently estimated at 28 million units. He emphasized the importance of bringing the price down to N5,000 to ensure affordability and facilitate the completion of ongoing building projects.
Similarly, Executive Secretary of the Association of Housing Corporation in Nigeria, Toye Eniola, condemned the negotiation, asserting that the proposed prices would render housing unaffordable for low-income earners and exacerbate the housing deficit. He advocated for the adoption of local building materials, such as interlocking blocks and bamboo, to reduce construction costs and promote affordability.
CEO of Cromwell Professional Services International Limited, Sola Enitan, criticized the reduction as insufficient, warning of potential consequences such as rent increases and government interventions to mitigate the impact on housing construction. He urged the government to explore alternatives to cement, particularly in government-funded social housing projects.
Jide Odusolu, CEO of Octo5 Holdings, questioned the earlier promise by BUA Cement to slash prices to N3,500 per bag, highlighting the need for transparency and accountability in pricing strategies. He called for measures to address challenges such as gas shortage and import duties to facilitate local production and reduce costs.
In response to the concerns raised, cement manufacturers attributed the pricing challenges to factors such as gas shortages, import duties, smuggling, and road network issues. They called on the government to address these challenges to enable them to offer more competitive prices.