Cost of cement across the country has experienced a great paradigm shift causing its end users to express their grief towards the unpleasant economic hardship.
Investigations has shown that price increases are occurring across manufacturers, even with BUA Cement having just reduced the cost of a 50kg bag of the product to N3,500.
Due to the grave impacts of inflation, the cost of a 50 kg bag of cement increased to approximately N10,500 in certain areas of Lagos, Ogun, and other states within a week, from February 11 to today.
The end users of the product, who did not bargain for the price shift, have been caught off guard by the cement’s continuously rising price.
Retailers have halted sales due to the product’s recurrent price increases, afraid that manufacturers may raise prices soon.
As a result, many of them have closed their doors against clients, claiming that they are anticipating cement when it is not yet available.
Regarding the cause of the product’s price increase, a few dealers stated that manufacturers raised their depot prices to an all-time high in response to the nation’s general price increase for goods.
In the Magboro neighborhood of Obafemi-Owode Local Government Area, Ogun State, a cement dealer stated that producers had raised their depot pricing, which, when combined with the elevated price of conveyance, is the reason why cement prices are rising across the nation.
The Real Estate Developers’ Association of Nigeria (REDAN), which claims that the escalating price of cement will hurt the nation’s economy, has urged President Bola Tinubu to step in.
Recently, the president of REDAN, Aliyu Wamakko, urged Tinubu to set up a quick meeting with cement producers to go over ways to save Nigerians from experiencing more suffering.
According to Wamakko, the nation is experiencing economic difficulty, and the rising cost of cement will make things worse for Nigerians, especially those who work in the real estate industry.
“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,” he said.
“When there is construction, there is multiple employment and it helps to reduce the poverty index of the country. But remember, because of no employment… the resultant effect is banditry, kidnapping, armed robbery.
“The federal government should also remember that we have 28 million housing deficit in Nigeria.
“Cement is an essential ingredient in the production of buildings. Frequency in the increase of its price has 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 issued a warning on September 25, 2023, stating that the intention of the government to install concrete roads may cause the price of cement to rise from N5,000 to N9,000.
In response to questions about the effects of the growing expense, Wamakko suggested that the government support greater industry participation as a long-term solution to the problem of soaring costs of cement.
He said it is unreasonable for Nigerians to purchase a bag of more than N3,500.
Wamakko asserts that any additional rise in cement prices would directly jeopardize the federal government’s housing initiative, under the “Renewed Hope.” Agenda.
“Cement is a major component in building construction, serving as a binder substance, hardens and adheres to other materials to bind them together,” he added.
