The Minister of Housing and Urban Development, Arc. Musa Dangiwa, has expressed fear that cement producers might use the volatile foreign exchange market as an excuse to sharply boost cement prices, exacerbating Nigeria’s already dire economic conditions.
This matter was raised at a meeting that Dangiwa called with prominent members of the cement industry, such as Rabiu Umar, the Group Chief Commercial Officer of Dangote Industries Limited, Gbenga Onimowo, the Commercial Director of Lafarge Cement PLC, James Salako, the Secretary of the Cement Manufacturers Association of Nigeria (CMAN), and other senior executives. Â
The minister berated the cement producers for their insufficient attempts to rein in the skyrocketing cost of cement, pointing out an unconscionable price increase of over 100% in recent months, from N5,500 to over N10,000.
Speaking on the subject, the Minister stated: “The persistent, disproportionate increase in the price of cement is unacceptable and unreasonable because we know that some of the key components of producing building materials, especially cement, are sourced locally. Important inputs that are produced domestically, such gypsum, limestone, clay, and silica sand, shouldn’t be valued in dollars.”
Arc. Musa Dangiwa continued by adding, “You can’t keep making excuses and blaming the dollar for everything. The worst thing is that, after seeing that you raise your price, other manufacturers of building materials follow suit, taking their cue from cement producers. This has been occurring practically every week lately, and it needs to stop.”
Dangiwa further stressed that cement makers should innovate and devise a plan as members of the constituted committee, rather than shifting the blame to Nigerians in their quest for profits amid small macroeconomic issues.
Dangiwa went on to say that the Ministry’s primary goal and the Bola Ahmed Tinubu administration’s top priority, housing supply, is put in jeopardy by the rising cost of cement.
“For example, if we had planned to build a one-bedroom apartment for roughly N8 million, it would now cost double that amount, or about N16 million. It would now be impossible for a Nigerian to acquire a home for N8 million, even if they could afford to do so. We are also aware of a number of people who were forced to halt building activity as a result of this event,” he went on to add.
He went on to say that the Ministry is extremely worried about the current state of affairs, especially in light of the programs it has started to provide low- and middle-class people with social and affordable housing, as well as vulnerable populations.
“In 15 states across the Federation, we have already given contracts for Renewed Hope Cities and Estates. Additionally, we want to construct at least 1,000 homes in seven (7) bandit-affected states under the PULAKU Initiative. We are concerned that these plans may be impacted by the nation’s growing cost of cement and other building supplies,” he stated.
In addition, the minister gave Dr. Marcus Ogunbiyi, the Permanent Secretary, instructions to quicken the committee’s work and create suggestions that address the manufacturers’ concerns so that they can be presented to the Federal Executive Council.Â
