Following the recent increase in the price of cement, the President of the Real Estate Developers Association of Nigeria (REDAN), Dr. Aliyu Oroji Wamakko, has called on President Bola Ahmed Tinubu to urgently invite cement manufacturers for discussions to forestall further hardship on Nigerians.
Dr. Wamakko, who spoke during a media briefing in Abuja on Tuesday, stated that there was already economic hardship in the country. He emphasized that cement manufacturers reviewing upward cement prices in early January do not bode well for Nigerians and real estate developers.
“The price of ready-mix concrete will also be increased, while the cost of in-situ production of concrete will rise significantly. Such an increment, if allowed to take place, will worsen the economic situation of the nation.
“When there is construction, there is multiple employment, which helps to reduce the poverty index of the country. But remember, because of unemployment, the resultant effect is banditry, kidnapping, and armed robbery.
“The Federal Government should also remember that we have a 28 million housing deficit in Nigeria. Cement is an essential ingredient in the production of buildings. Frequent increases in its price have negatively impacted the nation’s housing sector. Experience has shown that high prices of cement tend to encourage a reduction in the quality of building production.”
The Cement Producers Association of Nigeria had earlier warned that the plan by the Federal Government to introduce concrete roads would raise the cement price to N9,000 per bag from the current price of N5,000.
Dr. Wamakko also called on the government to permanently address the perennial cement price hike by facilitating larger participation in the cement industry, noting that Nigerians had no business buying cement for more than N3,500 per bag. The REDAN President urged President Tinubu to investigate why the current price of a 50kg bag of cement was N7,500, despite a cement manufacturer recently promising a price of N3,500 for the product.
He said any further increase in the price of cement would be a direct threat to the ‘Renewed Hope’ agenda housing programme of the Federal Government.
“You see, Cement is a major component in building construction, serving as a binding substance, hardening and adhering to other materials to bind them together.
“The Chairman of BUA Group, Abdulsamad Rabiu, had last year announced the intention of his brand to crash cement prices from over N5,500 per bag to N3,500 beginning from January this year. But the price has remained unchanged.”
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