Building sector operators have warned that the erratic surge in cement prices is worsening Nigeria’s housing crisis by driving up construction costs, property values, and rents.
The warning followed the recent surge in the price of a 50kg bag of Dangote Cement to over N15,000 in some locations, despite an ongoing investigation by the Federal Competition and Consumer Protection Commission into possible price hikes in the cement industry.
The operators, who spoke in separate phone interviews with The PUNCH, called for urgent intervention in the cement market, including the conclusion and publication of the FCCPC investigation, greater competition among manufacturers and action against suspected cartels and other market abuses.
The Principal Partner, Space Button Architecture Limited, Amusan Oluseyi, said the increase remained difficult to justify given Nigeria’s large limestone deposits and substantial cement production capacity.
“It is quite difficult to clearly explain why the cost of cement is rising at such an alarming rate in parts of Nigeria, especially since our nation possesses large quantities of limestone resources with an established cement production capacity estimated between 60 and 65 million metric tonnes annually, while domestic consumption is estimated between 25 and 30 million metric tonnes,” Amusan said.
