The Minister of Housing and Urban Development, Arc. Musa Dangiwa, has decried the incessant rise in the cost of cement and other building materials in the country, describing it as unacceptable.
This sentiment was shared during a visit to his office in Abuja by a delegation comprising members from the Federal Mortgage Bank of Nigeria (FMBN), Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and the Nigeria Employers Consultative Association (NECA), according to a statement on the ministry’s website.
Dangiwa questioned the consistent and disproportionate rise in the price of cement, particularly given that cement producers in the country primarily obtain all their raw materials locally.
“It is disheartening to see how much Nigerians have to pay for essential building commodities like cement, with the prices rising almost on a daily basis. I don’t understand the reason for this increase, and it is not acceptable.
“I am going to be meeting with these manufacturers soon, so that they can explain to Nigerians their reasons for such incessant hikes. I know that the cement producers source their raw materials in Nigeria, the limestone, clay, silica sand, gypsum, iron ore, and the rest. These minerals abound in Nigeria and these manufacturers get them here, so there is no justification to try and blame it all on the rise of dollar”, he said.
The statement noted that the minister’s planned meeting with cement and building material manufacturers aims to tackle the escalating costs of these products and advance the goal of providing affordable housing in Nigeria, a priority highlighted by President Bola Tinubu’s administration.
More insights
In January 2024, the Ministry of Housing and Urban Development launched the Building Materials Reform Task Team.
This task team is responsible for fostering the growth of the building materials industry in the country by establishing manufacturing hubs in each of the six geopolitical zones.
However, Minister Dangiwa pointed out that these hubs are yet to come on stream.
What you should know
According to Nairametrics‘ recent investigation spanning various retail outlets in Lagos, the price of a 50kg bag of cement has surged to approximately N9,500 as of February 15, 2024.
In January 2024, the price of a 50kg bag of cement ranged from N6,000 to N6,500.
This sudden price escalation has prompted some retailers to halt sales, fearing potential further increases in the near future.
Nairametrics reported about five months ago that the Cement Producers Association of Nigeria cautioned that the federal government’s plan to introduce concrete roads could increase cement prices to N9,000 per bag, up from the current N5,000.