The agreement between the Federal Government and cement manufacturers to reduce cement prices to between N7,000 and N8,000 has been met with disapproval from developers in the construction industry.
Dr. Aliyu Wamakko, the President of the Real Estate Developers Association of Nigeria, expressed dissatisfaction with the reduction, citing its adverse effects on the economy. He highlighted the previous promise by the CEO of BUA Cement to lower prices to N3,500, emphasizing the discrepancy between the pledge and the current negotiation outcome.
Wamakko argued that a price above N5,000 would not positively impact the economy or alleviate the housing deficit, suggesting that the price should ideally be lowered to N5,000 to facilitate meaningful progress in addressing housing challenges.
Similarly, Toye Eniola, the Executive Secretary of the Association of Housing Corporation in Nigeria, criticized the negotiation outcome, stating that the proposed prices would render housing unaffordable for the poor and widen the housing deficit gap. He advocated for the adoption of local building materials to reduce costs and mitigate the impact of high cement prices.
Sola Enitan, CEO of Cromwell Professional Services International Limited, labeled the reduction as insufficient, warning of potential repercussions such as increased rents if housing construction becomes financially unfeasible due to high cement prices.
Jide Odusolu, CEO of Octo5 Holdings, questioned the feasibility of BUA Cement’s earlier promise to sell cement at N3,500 per bag, suggesting that low-income earners should benefit from government-funded social housing projects. He proposed measures to address challenges such as gas shortages and emphasized the transition to concrete production as an alternative to cement reliance.
While cement manufacturers justified the pricing decision by highlighting challenges such as gas shortages, import duty, smuggling, and poor road networks, developers and industry stakeholders remain skeptical about the impact of the negotiated prices on the housing sector and the economy at large.
