Outrage As Cement Prices Hit N4,600 in Materials’ Markets Across Nigeria

Outrage As Cement Prices Hit N4,600 in Materials’ Markets Across Nigeria

  • The inflation trend in the country has impacted the prices of goods and services across board and cement is not left out
  • In the last six months, the prices of cement in the country continues to escalate to astronomical levels
  • Experts say the trend will continue if those in authority do not take concrete steps to address the issue

Lagos - A report by The Guardian newspaper has revealed that the prices of cement continue to rise in the building materials markets across the country.

According to the report, the development has triggered a surge in housing prices and the overall cost of construction projects.

The Buhari-led administration has been advised to take concrete steps to address the increasing prices of goods and services in the country. Photo credit: Aso Rock Villa
Source: Facebook

From December 2020 to November 2021, cement prices rose by 44 per cent impacting prices of other products like blocks, rings, and others.

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Within the past six months, the price of cement rose from N3, 200 to N4, 600 as a 50kg bag hovers around N3, 800, and N4, 600 respectively.

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A dealer of the products, Mr Sunday Ilesanmi, who confirmed the development said the latest increase is from the factory.

His words:

“The price of cement has been fluctuating lately but since the price went up, it has remained high. It is also a known fact that whenever the festive period approaches, prices of cement usually go up. Despite the increase, people are still buying because they don’t have an alternative.”

Speaking on the development, the chairman, Faculty of Estate Agency and Marketing, Mr Kayode Ogunji, observed that a major problem facing the manufacturing sector is that when a particular product is on higher demand, people play with the price.

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He said the ever-fluctuating foreign exchange rate is a factor threatening the cement sector.

He added:

“There is a lot of construction work on-going across the states, the federal and individual levels.
“As a result of that there is no alternative to cement, yet the quantity is less than the market demands and so there is bound to be an increase in prices. I won’t be surprised by January 2022; there may be another price regime.”

A past chairman, Nigerian Institute of Building, Lagos chapter, Mr Adelaja Adekanmbi, called for improved capacity and production to reduce price increases.

He noted that it is becoming difficult to have low-income housing with the increasing price of cement and iron rods in the market.

A civil engineer based in Abuja, Cyril Otabo, who spoke to a Legit.ng reporter on the issue, said Nigerians who intend to build houses in the capital city in the year 2022 should brace up for more spending.

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He said:

“I sympathise with those who want to start building in 2022. They will most likely spend more than what they have bargained for.
“A lot of people in Abuja have landed properties but can't build because of the cost, and with the prices of building materials going up almost on a daily basis, this will affect those who have budgeted a certain amount to build. It is a tough situation really.”

Over 7,000 Nigerians scramble to get FG new houses

Meanwhile, a total of 7,315 Nigerians have applied for the recently announced 5,000 federal government housing units across the country.

The massive application for the housing units built under the National Housing Programme comes just one week after the launch of the initiative by the minister of works and housing, Babatunde Fashola.

Speaking on the initiative, Fashola said that the current programme is a pilot or demonstration scheme expected to push the private sector into participating.

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Federal govt commences 300,000 social housing scheme

Legit.ng had earlier reported that cement manufacturers reached an agreement with the Buhari administration to charge discounted prices for their products to be used to build the houses.

Answering reporters' questions after the visit to one of the construction sites of the social housing scheme, Vice President Yemi Osinbajo noted the contributions of major cement manufacturers in the country towards the success of the programme.

After seeing the prototypes of the one-bedroom and two-bedroom bungalows, the vice president expressed satisfaction with the quality of the design and the fact that the houses are very affordable.

Source: Legit.ng

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