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JUST IN: Housing minister to meet cement manufacturers over rising price

Ademola Damilola by Ademola Damilola
February 15, 2024
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JUST IN: Housing minister to meet cement manufacturers over rising price
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In an effort to curb the escalating costs of cement and other building materials and to improve the accessibility of affordable housing in Nigeria, Minister of Housing and Urban Development, Ahmed Dangiwa, has convened a meeting with manufacturers of cement and other construction materials in the country.

The objective of this initiative is to gain a deeper understanding of the challenges within the sector, refine strategies to alleviate the rising costs of building materials, and devise sustainable solutions. In a statement released by his special adviser on media, Mark Chiese, on Thursday, the minister expressed concern over the high prices of building materials despite the country’s abundance of raw materials.

Investigations conducted by our correspondent revealed a significant surge in the price of a 50kg bag of cement, which now sells at N9,000 along the airport road, marking a 38.8 percent increase from the N5,500 it was priced at the previous week. Minister Dangiwa questioned the recurrent disproportionate hikes in the price of cement, particularly considering that local cement producers obtain all their raw materials domestically.

The minister conveyed these sentiments during a courtesy visit by a delegation from the Federal Mortgage Bank of Nigeria, Nigeria Labour Congress, Trade Union Congress, and the Nigeria Employers Consultative Association. The discussion primarily centered around the progress of the collaboration between the FMBN and labor centers, especially regarding the National Affordable Housing Delivery Programme for Nigerian Workers, which Dangiwa initiated during his tenure as Managing Director of the FMBN.

Expressing dismay over the escalating costs, Dangiwa pledged to engage with manufacturers to seek explanations for the incessant price hikes. He highlighted that these manufacturers source their raw materials locally, emphasizing the abundance of minerals like limestone, clay, silica sand, gypsum, and iron ore in Nigeria.

Assuring the delegation of the government’s commitment to providing decent and affordable housing, Minister Dangiwa promised to create an enabling environment for the private sector, ensuring that building materials remain affordable and accessible. He also referenced the Building Materials Reform Task Team inaugurated in January as part of efforts to enhance the building materials industry.

Dangiwa emphasized the ongoing need for dialogue with industry players to promote affordability, especially in the absence of operational Building Materials Manufacturing Hubs in each geopolitical zone. Regarding the partnership between the FMBN and organized labor, the minister urged the NLC, TUC, and NECA to view the Bank and the National Housing Fund Scheme as crucial platforms that require their encouragement and support for improved service delivery.

Acknowledging the FMBN’s imperfections, Dangiwa highlighted the institution’s unique advantages, such as single-digit interest rates, extended tenors, and lower equity requirements compared to commercial alternatives. He urged stakeholders to support the FMBN, emphasizing its pivotal role in providing housing solutions for a significant segment of the Nigerian population.

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