Rising cement price will worsen economy – Wammako

Following the recent increase in prices of cement in the country, the President of Real Estate Developers’ Association of Nigeria (REDAN), Dr. Aliyu Wamakko, has called on President Bola Tinubu to urgently invite cement manufacturers for discussion to forestall further hardship on Nigerians.

Wamakko stated on Wednesday in Abuja that economic hardship is already biting harder, saying the increase in price of cement by manufacturers in early January doesn’t tell well for Nigerians and real Estate Developers.

He said, “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 and it helps to reduce the poverty index of the country. The resultant effect of unemployment is banditry, kidnapping, 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.”

He also noted that the Cement Producers Association of Nigeria had warned that the plan by the federal government to introduce concrete roads would raise the price of cement to N9,000 per bag from the current price of N5,000, thus the federal government should shelve the idea.

Meanwhile, the price of cement has continued to soar as a bag is now sold for between N6,000 and N7,000.

Investigations at major cement depots in Lagos revealed that a bag of cement which was sold for between N5,000 and N5,500 at the beginning of the year is now sold for between N6,500 and N7,000.

It was learnt that the cement companies, including BUA which announced a reduction of ex-factory cement price to N3,500 per bag in October, have increased their rate due to increase in cost of production.

A cement dealer at Oba Ogunji in Lagos, Alhaja Basirat Lawal, blamed the hike on the cost of transportation and the depreciation of the naira. She noted that dealers have little or no control on the price.

Mr Moshood Alimi, who sells cement at Valley View estate in Aboru area of Lagos, said a bag of Dangote cement is sold at the rate of N6,800 and Lafarge at the rate of N6,700.

“We can’t stock BUA cement because the cost of transporting it to Lagos will make a bag to be as high as N7,500 because the factory price has been increased. Dangote and Lafarge are the cheapest in the market,” he said.

A building contractor, Mr Ishola Afolabi, said the hike in the price of cement, is a bane in the construction sector as many potential house owners are unable to cope with the new price.