Builders and developers in Nigeria have expressed dissatisfaction with the recent agreement reached between the Federal Government and cement manufacturers to reduce the price of cement to between N7,000 and N8,000 per 50kg bag.
In an exclusive interview with The PUNCH, Dr. Aliyu Wamakko, President of the Real Estate Developers Association of Nigeria, criticized the reduction, stating that it would have adverse effects on the economy. He emphasized the importance of cement as a primary construction material and questioned the need for a price reduction given that most of the components of cement are locally sourced.
Similarly, Toye Eniola, Executive Secretary of the Association of Housing Corporation in Nigeria, condemned the negotiation, arguing that the proposed price range would render housing unaffordable for the poor and widen the housing deficit gap. He advocated for the use of alternative local building materials to reduce construction costs.
Sola Enitan, CEO of Cromwell Professional Services International Limited, echoed these sentiments, describing the reduction as inadequate and warning of potential repercussions on rent prices and government housing projects.
Jide Odusolu, CEO of Octo5 Holdings, questioned the earlier promise by BUA Cement to slash prices to N3,500 per bag, highlighting the need for transparency in pricing practices.
While cement manufacturers have agreed to the proposed price range, builders and industry stakeholders remain skeptical about its impact on housing affordability and construction costs in Nigeria.