The federal government has said that the President Bola Tinubu administration’s top priority and the Ministry of Housing’s primary focus, which is housing delivery, are at risk due to the recent surge in cement prices.
The Housing and Urban Development Minister, Ahmed Dangiwa, conveyed this message during a meeting with cement manufacturers at the Ministry headquarters in Abuja on Tuesday, February 20.
He said: “For example, if we were planning to build a one-bedroom apartment for about N8 million, it will now cost twice that much, about N16 million to build. If a Nigerian could afford to own a home of N8 million, it would now be impossible to do so. We are also aware of several persons who have had to suspend construction work because of this development.”.
He expressed the ministry’s concern regarding the present circumstances, especially considering the initiatives it has undertaken to provide social and affordable housing for low- and middle-class individuals, as well as vulnerable members of the community.
Dangiwa said: “We have already awarded contracts for Renewed Hope Cities and Estates in 15 states of the Federation. There is also the PULAKU Initiative through which we intend to build at least 1,000 houses in seven (7) states affected by banditry. We are worried that the rising cost of cement and other building materials in the country will affect these plans.”
He added that the government would not tolerate a scenario in which the price of necessary building materials, like cement, keeps growing uncontrolled and that the cement manufacturers are not doing enough to stop the rising cost of cement in the nation.
He noted: “This represents a 100 percent rise, and it is not only on cement. We have also seen near-record high escalations in the prices of other building materials, such as iron rods and other fittings. I recall that late last year, BUA Cement announced a commendable reduction in the price of cement from N5,500 to N3,500 per bag.
“I applauded the gesture, and several other stakeholders did too. But today, the reality is that cement prices are escalating. This is a crisis for housing delivery.
“An increase in essential building materials means an increase in the price of houses. An increase in the cost of building houses means more and more Nigerians can no longer afford to own houses and provide decent shelter for themselves and their loved ones.”
Dangiwa urged the producers to deal honestly and to stop making things tough for Nigerians.
“We know that some of the key components of producing building materials, especially cement, are locally sourced, so the recurring disproportionate increase in the price of cement is unacceptable and unreasonable. Key input materials such as limestone, clay, silica sand, and gypsum within our borders should not be dollar-rated.
“You cannot continue to give excuses and blame it on the dollar all the time. The worst part is that other building materials manufacturers take a cue from cement manufacturers, and once they see that you increase your price, they do the same. Recently, this is happening almost every week, and it has to stop,” he stated.
