REDAN Demands FG’s Immediate Intervention As Cement Prices Soar

President of Real Estate Developers Association of Nigeria ( REDAN), Dr Aliyu Oroji Wamakko weekend said the recent increase in prices of cement further threatens infrastructural development and worsening the housing deficit in the country.

Worried by the increment of cement to almost 15,000 Naira par 50kg bag , Dr. Wammako said with increased budget allocations to critical sectors and ambitious infrastructure initiatives (N1.32 trillion to infrastructure, which represents 5.0 per cent of the total federal government’s 2024 budget), the construction industry is likely to experience a decrease.

Last week, a 50 kilogram bag of cement in the Federal Capital Territory surged to between N10,000 and N15,000.

Dr Wammako decried the current price of 15, 000 a bag of cement said despite a slash in prices from BUA Cement Plc in October 2023, cement price still went up.

According to the REDAN President, “On Sunday, October 1, 2023, the management of BUA Cement announced a slash of the ex-factory price of a bag of cement by 36 per cent to N3,500 from N5,500, promising to review the price upon completion of the new plants, expected to increase its production volumes to 17 million metric tons per annum.

“The BUA Group’s chairman, Abdul-Samad Rabiu, had told President Bola Tinubu that his company was increasing its production capacity by inaugurating two new cement plants at the end of 2023 or early 2024 to enable it to flood the nation’s markets with the product.

“We are begging the federal government through the Minister of Housing and Urban Development, Ach. Dangiwa Musa to urgently call a stakeholders meeting as he has promised to do within two weeks, else construction in our various sites may be put on hold because of the rising increases in the cement price.

According to the REDAN President, “The increase in prices of building materials is compounding the woes of the housing sector. We want the Federal Government to initiate policies that could ameliorate challenges, especially those fostered by exchange rate to boost supply and accessibility to affordable housing

“And again, in active construction sites in Lagos, Ogun, Port Harcourt, Kano, Abuja, Anambra, and Oyo states, the high price of essential materials is impacting project schedules, thereby slowing down construction activities.

Many are abandoning sites waiting for better days. Developer, who had spent N50 million to construct a building last November, would end up spending about N100 million for the same type of project due to inflation.”

“We want to thank the Minister for Housing and Urban Development, Ach. Musa Dangiwa who has already decried the astronomical rise in the price of cement and other building materials across the country, we urge him to quickly find a lasting solution to this situation.

A market survey conducted on Friday in Gwarimpa, Area 10, Kubwa, Lugbe and Dawaki showed that a 50kg bag of Dangote cement is N10,000 and BUA cement stood at N15,000.

A retailer in Gwarimpa, Yinka Adebayo, said that the price of Dangote cement is N10,000 while that of BUA is N15,000.

He said he sold a bag of cement for N6,000 in January 2023.

“We sell Dangote cement at N10,000 per bag, and BUA is N15,000. Unfortunately, it will surprise you that I sold the same bag of cement, N5,500 to N6000, last month,” he said.