The Real Estate Developer’s Association of Nigeria (REDAN) has appealed to President Bola Tinubu to convene a meeting with cement manufacturers to address the surge in cement prices and prevent further economic strain on Nigerians.
Dr. Aliyu Oroji Wamakko, the President of REDAN, expressed his concerns over the impact of the price hike on the real estate sector and the broader Nigerian economy, which is already facing significant challenges, in a statement on Wednesday.
He emphasised the possible consequences, which included rising rates of crime and poverty brought on by unemployment.
Dr Wamakko stated that “The price of ready-mix concrete will also increase, while the cost of on-site production of concrete will rise significantly.
“When there is construction, there are multiple employment opportunities, which helps to reduce the poverty index of the country. However, due to lack of employment, the resultant effect is banditry, kidnapping, armed robbery.”
If left unchecked, he said, the sharp increase in cement costs might worsen the country’s economic problems and impede the government’s “Renewed Hope” initiative, which aims to meet the population’s housing demands.
As the country struggles with a 28 million housing deficit, Dr. Wamakko emphasised the critical role that cement plays in the building industry and its impact on the housing sector nationwide.
He said that the maximum price that citizens should pay for a bag of cement is N3,500. He claims that the present cost of a 50 kg bag of cement, which is N7,500, calls for an extensive review by the President.
In addition, the Nigerian Cement Producers Association has already issued a warning that the Federal Government’s intention to install concrete roads might result in cement prices rising to N9,000 per bag.
In order to stop future price hikes, Dr. Wamakko pleaded with the government to reevaluate the initiative.
Wamakko added that, wholesalers are blaming outdated stock and logistical expenses for retailers’ nationwide pricing maintenance, which ranges from N5,500 to over N8,000 per bag. Given that national housing programmes and the nation’s general economic stability might be directly threatened by any additional rise in cement costs, this situation necessitates quick response.
Source: ViewPoint Housing News