CEMENT Price To Come DOWN? Nigerians Receive Goodnews As Tinubu Takes Strong ACTION Over High Cost Of Cement
The significant increase in the price of a 50kg bag of cement to approximately N13, 000 in various retail outlets across the Federal Capital Territory and Enugu highlights the profound impact of inflation that has gripped Nigeria. A thorough investigation conducted by Sunday PUNCH reveals a stark escalation from the initial factory price of N8, 500 per bag, with resellers furt X inflating the rates due to mountin inflationary pressures. The asses THE conducted on Thursday along Airport Road depicted a consistent upward trajectory in prices since December 2023, starting at around N5, 000 and gradually climbing to N9, 000, signaling a concerning trend with no signs of abating.
Subsequent market surveys carried out on Friday and Saturday in Karu, Jahi, and Lugbe areas of Abuja unveiled a wide price range for a 50kg bag of cement, fluctuating between N10, 000 to N13, 000. In Lugbe, retailers confirmed the prices of Dangote Cement and BUA Cement at N10, 000 and N13,000, respectively, shedding light on the varying costs across different brands.
Victor Adewuyi, a retailer, provided insights into the pricing dynamics, highlighting fluctuating rates between N10, 000 and N13, 000 at Timber Market in Lugbe, depending on customer negotiation skills. Meanwhile, in Jahi, the price stabilized at N11, 000, depicting localized variations in pricing strategies.
Concerns have been raised by Femi Oyedele, Managing Director of Fame Oyster & Co. Nigeria, regarding the sustainability of the cement price surge. While he foresees a potential reduction in prices, he cautioned against relentless increments, warning of adverse repercussions on artisans and tradesmen within the construction. sector.
Oyedele emphasized the detrimental Impact of continuous price hikes, citing potential project pauses by clients and contractors, which could lead to unemployment and worsen Nigeria’ s housing deficit. He proposed a contingency measure where the government issues import licenses to businessmen, enabling the importation of cement to counteract the relentless price surges.
The Ministry of Housing and Urban Development has commenced discussions with cement and building materials manufacturers to tackle the increasing costs. Moreover, the Minister for Works, David Umahi, has arranged meetings with cement manufacturers to address the rising prices and the disparities between factory and market
prices.
While these measures indicate coordinated attempts to tackle the soaring prices of crucial construction materials, their effectiveness is uncertain due to persistent inflationary pressures and market dynamics.
In summary, the exponential surge in cement prices highlights the pressing need for proactive steps to mitigate inflationary pressures and stabilize prices, ensuring that essential construction materials remain affordable and accessible for Nigeria’ s infrastructure development.
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