Developers in the construction industry have rejected the agreement reached between the Federal Government and cement manufacturers to reduce the prices of cement to between N7,000 and N8,000. The President of the Real Estate Developers Association of Nigeria, Dr. Aliyu Wamakko, expressed dissatisfaction with the reduction, stating that it is not beneficial for the economy. He argued that the CEO of BUA Cement, Abdul Samad Rabiu, had promised a reduction to N3,500 by January 1, 2024, and questioned the necessity of a higher price.
Wamakko emphasized the local sourcing of most cement components and advocated for a reduction to N5,000 for any meaningful impact on addressing the country’s housing deficit. He warned that prices above N5,000 would lead to incomplete building projects across the country.
Other industry experts also criticized the negotiated price reduction. Toye Eniola, the Executive Secretary of the Association of Housing Corporation in Nigeria, condemned the negotiation, stating that the proposed prices are not affordable for the poor, widening the housing deficit gap. He urged a return to local building materials and the exploration of alternative materials researched by the Nigerian Building and Road Research Institute.
Sola Enitan, CEO of Cromwell Professional Services International Limited, expressed dissatisfaction with the reduction, predicting potential adverse effects on the rental market in the later part of 2024 and 2025. He suggested that the government should build without using cement or use it sparingly to make cement manufacturers feel the pinch.
Jide Odusolu, CEO of Octo5 Holdings, questioned the earlier promise made by BUA Cement to sell cement at N3,500 per bag. He called for a mechanism to benchmark gas for local use in naira, emphasizing the need to move from reliance on bagged cement to producing concrete.
On Monday, cement manufacturers agreed to sell a 50kg bag of cement at a retail price between N7,000 and N8,000, depending on location nationwide.
