Developers Refuse to Accept ₦8,000 Cement Price, Give Reasons

A recent agreement between the Federal Government and cement manufacturers to reduce cement prices has been met with strong opposition from developers within the built industry.

Dr. Aliyu Wamakko, President of the Real Estate Developers Association of Nigeria, criticized the proposed reduction, emphasizing the detrimental impact it could have on the economy.

Despite promises made by BUA Cement’s CEO, Abdul Samad Rabiu, to lower prices to N3,500 by January 1, 2024, developers argue that even the proposed N8,000 price range is too high, advocating for a maximum price of N5,000 to facilitate meaningful progress in addressing Nigeria’s housing deficit.

Toye Eniola, Executive Secretary of the Association of Housing Corporation in Nigeria, condemned the negotiation, highlighting its implications for affordable housing accessibility.

Echoing these sentiments, Sola Enitan of Cromwell Professional Services International Limited criticized the reduction as insufficient and warned of potential hardships in the rental market if housing construction is hindered by inflated cement prices.

Jide Odusolu, CEO of Octo5 Holdings, questioned the validity of BUA Cement’s previous promise to sell cement at N3,500, urging the government to address underlying challenges such as gas shortage and import duty to facilitate more affordable local production.

In response to developers’ concerns, cement manufacturers have cited challenges including gas shortage, import duty, smuggling, and road network issues, underscoring the complexity of the situation.